CO129-412 - Governor Sir May - 1914 [7-8] — Page 447

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437

of which I can think, for the insertion of this

clause is that, as there was objection originally

on the part of the Cantonese to accept notea bearing the characters 'Za Oh'ing' on them, it must have been the intention of the Ministry of Finance immediately to exchange then for other

notes less objectionable in appearance. cordance, however, with Chinese lack ofprevision

no such have been supplied.

In 18-

I have done my utmost to persuade the two banks in question duly to honour requisitions for silver made on them, and at the ame time to retain in their treasuries the new notes received in exchange for their holdings without presenting them for encasham ment and thus depriving the Bank of China of their silver equivalent, until such time as the Central Government shall see fit to send forward a supply

of replacing notes.

The

The divergent interpretation of the memoran- dum has led to a certain amout of friction and has caused the Chinese delegates to express strong resentment at what is described as mala fides on the part of the British and German Banks. matter has been on various occasions referred telegraphically to Peking but at the time of wri- ting I do not know what ruling has been given or

The position is with- what solution arrived at.

out doubt a difficult one, and little can be urged against the argument of the banks that, had those

Chinese/