CONFIDENTIAL.
Enchome in 20.
11545/14 5.
292
Sir J. Jordan to Sir Edward Grey.-(Received March 23, 11·10 A.M.)
(No. 68.) R.
MY telegram No. 10 of 31st January.
Peking, March 23, 1914. (March 23, 3:30 P.M.)
Loan by Hong Kong Chinese having fallen through owing to refusal of Canton Government to permit any form of control, Stabb now suggests employment of 2,000,000Z. earmarked for salt reorganisation under the loan agreement. Governor of Hong Kong and Canton consul-general consider present position of Canton finances likely to occasion serious trouble, and Chinese Government, who fear that revolutionary leaders are now plotting in Hong Kong, are extremely apprehensive. In these circumstances two former favour proposed international scheme, and, since loan from purely British source is apparently unobtainable, I concur in their opinion. Mr. Hillier will, if you approve, approach groups here with a view to obtaining their sanction to employment of loan funds.
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