CO129-383 - Public Offices - 1911 — Page 498

2

Enclosure 2 in No. 1.

Sir J. Jordan to Prince Ching.

Your Higliness,

Peking, May 4, 191 WITH reference to the agreement between the Shansi Bureau of Trade and the Peking Syndicate (Limited), for the redemption of the syndicate's-mining rights in the province of Shansi, which was signed on the 21st day of January, 1908, and sealed by the Wai-wu Pu, I have the honour to inform your Highness that the agent-general of the syndicate reports that the total amount of the indemnity referred in article 2 of the above agreement-2,750,000 Hong Ping Hua Pao taels--has been duly paid to the syndicate on the dates specified in article 4 of the agreement, and that receipts for each payment, as received, have been duly given on the due dates, the last being issued to Mr. Liu Ta-ching on the 29th April for the final payment of 458,334 Hong Ping Hua Pao taels.

While communicating the above for your Highness's information, I have the honour to remind your Highness of the promise made in article 7 of the agreement that if by any chance the province of Shansi shall hereafter desire to raise a foreiga loan in connection with mines, working of iron, or transport of minerals, the province of Shansi shall notify the Peking Syndicate (Limited), and if the Peking Syndicate's proposals are in all respects fair and moderate shall then proceed to further negotiations."

I avail, &c.

J. N. JORDAN.

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

6.0

10697

REC

&

AFFAIRS OF CHINA.

HEGP 16 JUN 11

[May 22.]

SECTION 5.

CONFIDENTIAL.

[19446]

No. 1.

Sir J. Jordan to Sir Edward Grey.—(Received May 22.)

(No. 195.) Sir,

Peking, May 5, 1911. I HAVE the honour to transmit to you herewith copy of an Imperial decree which was issued yesterday with reference to the currency loan of 10,000,0007, contracted with the British, American, German, and French banks, and the loan of 10,000,000 yen negotiated with the Yokohama Specie Bank.

This is the first occasion on which transactions of this kind have been made the subject of any special notice by the Throne, and there has naturally been some speculation as to the motive which led to the issue of such an unusual and seemingly unnecessary Imperial pronouncement. The general impression is that the step has been taken to forestall the action of the national assembly, whose representatives had requested the convening of a special meeting of that body for the purpose of discussing these national loans. The decree is, in effect, a veiled apology to the assembly and an assurance to the country at large that these loans, which are only resorted to as a last resource, will be economically employed and used exclusively for the purposes for which they were contracted.

Incidentally, the bracketing of the quadruple loan with the loan from the Yokohama Specie Bank may be intended to soothe Japanese susceptibilities, which seem to have been seriously aroused by the former transaction.

I bare, &c.

J. N. JORDAN.

Enclosure in No. 1.

(Translation.)

Imperial Decree of May 4, 1911.

OF recent years the financial administration has been fraught with difficulty owing to the lack of uniformity in the coinage, while the people have suffered owing to the non-success of industrial enterprises. The Throne having observed this had no option but to instruct the boards to negotiate a special loan with the British, American, German, and French banks of 10,000,000, and a loan of 10,000,000 dollars with the Yokohama Specie Bank. These loans are specially intended for reforming and rendering uniform the currency system, and developing industrial enterprises as well as for extending the railway system. The Yamens concerned must do their utmost to economise the money and must not use it for other purposes. They must also in due course prepare a programme for our inspection, and so assist the sincere aims of the Throne.

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