CO129-396 - Public Offices - 1912 — Page 60

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have been made, did not recognise the transaction at all and, in the event of complications ensuing, tuok no steps on behalf of the lender for the recovery of

the money.

The above conditions were notified by the then

58

Tsungli Yamen in an official communication, dated December 4th 1891, to the Foreign Ministers at Peking, who were desired to convey the information to the

merchants of their respective countries; there have been constant instances of the adoption of the procedure

therein laid down.

Several cases have recently come to the knowledge

of the Wai Chiao Pu in which railways in the Provinces

under commercial management have had recourse to

foreign loans without reporting to, or requesting the

consent of, the Central Government, and have on their

own authority concluded the terms of the loan with

foreign merchants or other persons direct.

In order, therefore, to guard against possible

abuses, it is necessary to re-affirm the existing stip-

ulation and to state definitely that in future no

foreign loan contracted by any railway in the Provinces

even

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