L
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COPY.
149
Paraphrase of Telegram despatched from the Governor of
Hongkong to Secretary of State for the Colonies
on the 14th. March, 1914.
Re Confidential from me of the 30th. January: Domestic Loan negotiations, owing to mutual distrust Hongkong and Canton Merchants, are abortive, also owing to want of confidence in
Kwangtung Government of both of these.
If steps are not taken at once to relieve financial
straits of Kwangtung Government, complications of a serious kind
must follow. The most urgent necessity is to rehabilitate lote Issue in Canton. With this object, the Hongkong and Shanghai
Bank suggest an advance from the Reorganization Loan Funds by the
Group Banks Canton for redeeming notes. No control is involved
but only supervision by European Representative of Banks of Cancel-
-lation of redeemed notes.
The British Minister at Peking has had this matter laid before him and he has enquired whether the proposal has my approv-
-al. I propose to tell him that this Government is strongly in
favour of it.
If you approve, I shall be glad to learn by telegraph as
soon as possible.
No comments yet.
Private notes are available after approval.