CO129-383 - Public Offices - 1911 — Page 485

This Document is the Property of His Britannic Majesty's Government.]

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business. Strange to say, Mr. Calhoun is himself rather casual and dilatory in some of his ways.

He is generally late for diplomatie meetings, rarely keeps appointments at the proper time, and sometimes forgets to keep them altogether.

Belgium. The new Belgian Minister, M. de Cartier, impresses me very favourably The role of a Belgian Minister is now very circum- as a sensiblo and capable man. scribed, but M. de Cartier takes a keen interest in all questions that come before the diplomatic body, and I find him both reasonable and helpful in many ways.

Italy. The Italian Minister, M. Barilari, who was described in the last report by Mr. Max Müller, left Peking hurriedly on the outbreak of plague in North China and went straight home. He has now retired, and is to be succeeded by M. Sforza, late councillor of embassy at London.

The Italian Legation is in charge of the first secretary, M. G. Brambilla.

The Spanish and Dutch Ministers were described in Mr. Max Müller's despatch, to which reference has already been made, and full accounts of the Japanese Minister, M. Ijuin, and of the Russian Minister, M. Korostovetz, have been given in my previous reports.

It only remains to add that the Portuguese chargé d'affaires, M. de Brederode, like the Italian Minister, fled from Peking on the first appearance of plague and all that has since been heard of him is a telegram, in which he asked me to deny the report that he does not intend to return.

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AFFAIRS OF CHINA.

19697 RECO REGP 16 JUN 11

CONFIDENTIAL.

[May 17.]

SECTION 2,

[18834)

Dear Sir Francis,

No. 1.

Mr. Addis to Foreign Office(Received May 17.)

Hong Kong and Shanghai Banking Corporation,

31, Lombard Street, London, May 17, 1911.

I ENCLOSE copy of a letter which I have received this morning from M. Simon, in which he informs me that the Russian Government have informally intimated to the French Ministry for Foreign Affairs that it is not prepared at present to assent, without certain reservations, to the provisions of the Chinese currency loan.

The French Government are therefore withholding, for the present, their assent to the preliminary advance of 400,0001. as a first instalment of the 1,000,000%, until the complete programme of the whole amount of that portion of the loan destined for industrial development in Manchuria has been submitted to, and approved by, the Russian Government.

M. Simon further adds that his Government will also require, as a condition precedent to the co-operation of the French group with the other signatories to the loan agreement, a notification from the Russian Government that they agree to ear marking, as security for the loan, the various Manchurian revenues enumerated in the loan contract.

The French Government is no doubt within its right in withholding its assent until satisfied that the Russian Government has no objections to make to the proposed expenditure in Manchuria as a whole.

I am quite unable, however, to understand why the entirely new and unexpected condition by the French Government of a notification of the assent of Russia to the appropriation by China of her own Manchurian revenues is laid down.

The fact that the French group, with the cognisance of their Government, were signatories to the Currency Loan Agreement, in which these Manchurian revenues are specifically enumerated, would seem to render untenable their present claim to make the appropriation of these revenues contingent upon the consent of another Power.

Yours truly,

C. S. ADDIS.

Enclosure in No. 1.

M. Simon to Mr. Addis. Cher Mr. Addis,

Paris, le 16 mai, 1911. Currency Loan-Je vois par les communications de Messrs. Morgan, Harjès, and Co., que les banques anglaise, américaine et allemande paraissent être d'avis de consentir dès à présent au Gouvernement chinois une première avance de 400,000, et je regrette de ne pouvoir, au nom de notre syndicat, me dire d'accord avec elles à ce sujet. Mais il ne nous paraît possible de nous prononcer en connaissance de cause que sur un programme d'ensemble des dépenses envisagées pour la Mandchourie, et les indications succintes qui nous ont été fournies jusqu'ici sur l'emploi de l'avance en question ne nous semblent pas suffisantes pour nous engager dans cette voie.

Au reste, le contrat d'emprunt du 15 avril, article 8, paragraphe 4, stipule claire- ment que la somme de 1,000,0001. ne sera mise à la disposition du Gouvernement chinois que lorsque le programme des entreprises à réaliser en Mandchourie au moyen de la portion de l'emprunt prévue à cet effet aura été soumis aux banques et approuvé par elles.

D'autre part, vous vous souviendrez qu'à la réunion de Bruxelles, M. Ullman et moi avons fait toutes nos réserves sur l'affectation des fonds de l'emprunt en Mandchourie et sur les garanties constituées par les revenus de cette province en prévision d'objections possibles du Gouvernement russe. Or, j'ai été informé ces jours-ci par notre Ministère des Affaires Etrangères, que la Russie, saus faire

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