CO129-451 - Public Offices - 1918 — Page 183

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[This Document is the Property of His Britannic Majesty's Government.]

CHINESE LOANS AND CONCESSIONS.

CONFIDENTIAL

[235377]

No. 1.

180

[December 12.]

SECTION 1.

Sir,

Sir C. Addie to Foreign Office.—(Received December 12.)

Hong Kong and Shanghai Banking Corporation, 9, Gracechurch Street, London, December 11, 1917. I RECEIVED yesterday evening your letter dated the 8th instant, and, as requested, have consulted the other members of the British group in regard to their participating in the proposed advance to the Chinese Government, and have explained to them the nature of the American proposal and the importance of securing the readmission of the American group to the International Consortium.

In the circumstances the British group agreed, at a meeting held here to-day, to participate in the proposed advance, as desired by His Majesty's Government.

I enclose the official minutes of the meeting.

Enclosure in No. 1.

I have, &c.

C. S. ADDIS.

1

Minutes of a Meeting of the British Group held at the Offices of the Hong Kong and Shanghai Bank, 9, Gracechurch Street, London, on December 11, 1917.

Present:

Sir Charles Addis, representing the Hong Kong Bank.

Lord Revelstoke, representing Messrs. Baring Brothers.

Mr. John Stewart, representing Messrs. Parr's Bank.

Sir Montagu Turner, representing the London County and Westminster

Bank and the Chartered Bank of India, Australia, and China.

Sir Charles Addis in the Chair.

THE chairman stated that the meeting had been called to consider the readmission of an American group to the Consortium and their participation in the loan now under negotiation in Peking.

The British group learn with satisfaction that the United States Government are contemplating the formation of an American group to participate in the Supplementary Chinese Reorganisation Loan; they welcome the prospect of a renewal of American co-operation in Chinese finance in conjunction with the Allied Powers of Great Britain, France, Russia, Japan, and eventually Belgium, which they recognise would create a new situation.

The letter from the Foreign Office of the 8th December, 1917, having been discussed, it was resolved that the British group would be prepared, at the invitation of His Majesty's Government, to reconsider their position, and to participate with the Japanese and an American group in equal shares in the preliminary advance of 2,000,000Z. proposed by the Chinese Minister of Finance in a telegram from Peking dated the 12th October, 1917, as a second advance to be repaid from the Second Reorganisation Loan, or in two years secured upon the salt revenue similarly to first advance, interest at 7 per cent. per annum, proceeds to be used to reimburse Bank of China for advances made to the Chinese Government and restore value of Bank of China notes.

It is understood that the terms of the proposed advance would be not less favour- able than those of the previous advance of 10,000,000 yen made by the Japanese group, as embodied in their agreement made with the Chinese Government on the 28th August last.

In order to allow time for the formation of an American group, the British group

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