CO129-385 - Public Offices - 1911 — Page 35

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for consideration, but said that before definite action was taken on this report he would like to introduce the subject of the Financial Adviser to be appointed by China, upon which subject the four Banks had been asked by the U. S. Government to make a recommendation.

FINANCIAL ADVISER

The Chairman stated that he was very much pleased to be in a position to report that he had had an interview the previous evening with Dr. Vissering. whom the Groups had been considering for some time as a possible candidate for the position, and that Dr. Vissering had made the following statement of his position:

„Dr. Vissering, if nominated unanimously by the four Groups, is prepared, subject to the consent of his own Government, to accept the position of Financial Adviser to the Chinese Government.

For the information of the Conference Dr. Vissering is of opinion that the Programme may be considered sufficiently satisfactory to warrant the issue of the loan, and, subject to modifications of detail, a basis for a sound reform of the Chinese currency.

Dr. Vissering states that the matter of compensation is altogether of secondary importance to him, He is quite willing to accept from the Chinese Government any sum which they may consider appropriate to the position.

Dr. Vissering further states that it must be a condition of his acceptance of the position that he is to be entirely independent, both as regards the Government and the Groups, and that he is to be kept adequately informed of all matters pertaining to the programme of Currency Retorm.

Dr. Vissering added that his position with regard to expenditure of funds must be clearly understood, whereupon it was stated by the four Groups that Dr. Vissering as Financial Adviser could not be held responsible for the disposition of the proceeds of the Loan, notwith- standing any form of audit which may be approved, but that the four Groups would expect that he would approve and countersign requi- sitions against the proceeds of the loan only for proper purposes."

The Chairman called attention to the fact that Dr. Vissering had looked at the position in a very broad light and that he was interested in the opport- unity offered; that he stipulated no salary and that he would accept whatever the Chinese Government thought suitable. The Chairman enquiries of the Con- ference their pleasure in the matter. It was unanimously agreed that the

appointment of Dr. Vissering to the position, under the terms of his statement, would be satisfactory to the Banks, and it was RESOLVED to make a recommendation to the U. S. Government to that effect embodying in that recommendation the statement of Dr. Vissering's views above quoted.

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It was understood that the U. S. Government would undertake the negotiations with the Chinese Government for the appointment, but Mr. Addis suggested that each Group also report to its own Government the recommen- dation of Dr. Vissering, so that they might communicate their approval of his selection to the U. S. Government enabling the U. S. Government to negotiate with the Chinese with the added force which would be obtained from the know- ledge that the nomination was approved by the other three Governments as well as by all four Banking Groups. Mr. Addis stated his understanding that all four Governments bad informally signified in advance that they would approve the selection of Dr. Vissering.

The Secretary was directed to minute the sense of the Conference that Dr. Vissering be nominated by the U. S. Government in the manner above suggested. The Chairman said that he understood that it was the sense of the Conference that the notification of the recommendation of Dr. Vissering should be made to the U. S. Government at once, without waiting for the previous notification of the other Governments concerned, and the members of the Con- ference agreed that this was the understanding.

CURRENCY REFORM PROGRAMME.

The Conference having thus disposed of the business of nominating the Financial Adviser, the Chairman now referred to the Currency Reform Programme submitted by China under the Loan Agreement with which all were familiar. He referred to the fact that the Programme bad been carefully considered by a Committee of Experts appointed by the Banks and that the Report of the Committee had been submitted to the Banks and doubtless had been carefully examined by them. He enquired of the Conference whether it was their pleasure now to con- sider the Chinese programme in detail point by point, or whether it would be satisfactory to accept the Report of the Committee of Experts, only referring to details of the Programme which might require elucidation or discussion. There being no suggestion from anyone present the Chairman said that the American Group desire to state their interpretation of Article 14 and Article 15, Page 7 of the Chinese Programine, as follows:

It is the intention of the Imperial Chinese Government in this plan of Currency unification to avoid contraction of the circulating medium. In exchanging the new coins for old silver and copper coins and for sycee now in circulation, the time during which the exchange will be made at the market value, and the number of exchange offices in the different localities, will be so arranged as to afford every holder of coins or of sycee reasonable opportunity of effecting such exchange.

Mr. Davison stated that it was of course not intended as a change in the Memorials but simply as an explanation of what the American Group under- stood the Articles in question to mean and had so understood from the first. All the members of the Conference expressed themselves as believing that this meaning

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