CO129-448 - Governor Sir May - 1918 [4-6] — Page 284

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THE TIMES HISTORY OF THE WAR.

many's scientifica.ly organized use of the cosmopolitan financier as an auxiliary force for the advancement of her Wellpolitik. It is no exaggeration to say that the activities of British and French financiers, largely directed from Berlin, and their unfortunate influence in Downing Street, from 1907 to the outbreak of war, made British diplomacy and British capital subservient to the political purposes of Germany in China. They resulted in 1909 in the surrender to Germany, under most humilia.

d. XIV. part 178.)

188

construction must be accompanied by certain measures of supervision and control over the expenditure of loan funds The Chinese Government, and the Viceroy Chang Chih-tung in particular, greatly resented these restrictions, which they considered derogatory to their dignity, although accumulated experience had shown them to be fundamentally necessary, The German Bank's simple and ingenious method of procedure was to promise the Chinese Government loans freed from these

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THE MAILED FIST IN CHINA:

Count Waldersee at the march of the Allied Forces through the palace at Peking in 1900.

ting conditions, of rights of participation in the Yangisze Valley railway concessions, and this despite repeated protesta from the French Foreign Office and warnings froin His Majesty's Minister at Peking.

The method by which the Deutsch-Asiatische Bank enlisted the sympathy of the Chinese Government and of the high provincial autho ities in support of its proceedings and induced then to evade or repudiate their obligations to Great Britain combined gimplicity with far- teng ingenuity. The policy which Great Britain and France had adopted, with a view to casing the stability of China's finances, was to insist that all loans made to China for railway

vexatious restrictions, white at the same time assuring the Anglo-French financiers that it desired participation in the loan business with a view to imposing them more effectively. In eventually repudiating their political obliga- tions to Great Britain, the Chinese Government had every reason to believe that the British and French financiers concerned chiefly desired to avoid cut-throat competition in the loan busi ness, and, having no direct interest in the maintenance of the safeguards in question, would be prepared to dispense with themi and to follow the German lead. All that was required was a bold coup de main by the German Bank, backed by the German