CO129-423 - Governor Sir May - 1915 [7-8] — Page 691

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coolness and presence of mind. Unfortunately this force is now wanting since Klupfel is completely broken up through the recent death by drowning of his 25 year old son in Spain. According to Wuhion very much which has displeased us and others in the correspondence from Tasen of the last fer months may be traced to these feelings and this confusion and the extremely painful perental position of Fecius (quite apart from the Balkan troubles).

China ard sur debt to Kruzas Dr Mahlon has been convinced by Deur that it was and is absurd continually to harass both China and ur --- where there is rothing since the Kaiser has lost his right.- Eaur has advised me quietly to explain at our conference in Essen next Tuesday that we are doing what we can but "ultra posse nemo obligatur" or according to Fritz Reuterisch "when one does what he can then he cant do more than he does". He advised me to sak Dr M. to have patience He would certainly agree to it and wait for better times whien Baur has pictured him as being somewhere in the remote distance. Baur has declared in Easen 2payment cannot be expected from China before 3--5 years" and then be said to me if it gees quicker than that then so much the better". Dr Muhlon es further been convinced that it would be wrong

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to demand a higher rate of interest than before from Cheklang etc on account of the delay in peying, Bauria argument wer "to grant a delay in peying without any changes would be to meet the people; but to sharpen the conditions must te regard- ed as usury on our part-- exploitation intime of need".

Further,horever Baur thinks that C.and Co. China must get a safeguard in writing that the Chinese will still pay the current interest on overdue monies at Chekiang, Nanking etc for if nothing definite be decided upon it might be that Chine would say that they were not bound in that respect,

Hella odvisen me(that he had already spoken about in Tientsin) to send to Director Haux the information which we used to give to the banks. I vill therefore write him in a

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