CO129-470 - Public Offices - 1921 — Page 67

1

65

C

That

Peking is the only Government which has the official

recognition of Great Britain and the other Powers. Government has repeatedly affirmed its refusal to recognise any loan concluded by a Provincial Government without the sanction of the Central Government, a ruling which has been accepted by His Majesty's Government, and despite the assurances quoted in the second paragraph of Masers Loxley's letter of August 17th, 1920 to the Colonial Secretary at Hong Kong it is improbable that the Central Government would accord their sanction to any such transaction as that contemplated. But even should they do so His Majesty's Government could hardly lend their support to a transaction which might well open the door to further financial advances to the seceding

Provinces.

4.

Moreover His Majesty's Government are definitely precluded from supporting the scheme by their obligations to the new China Consortium, the agreement for which was signed at New York on October 15th and has since received the approval of His

Two Majesty's Government and the other Governments concerned. printed copies of that agreement and the relevant papers are enclosed, and attention is called in particular to paragraph 3 of the preamble and to Article 2 of the agreement itself.

5.

Lord Curzon would suggest, for the consideration of Lord Milner, that Sir. R. Stubbs should be informed that no support can be given to Messrs Loxley's project; Lordship is moreover at a loss to understand how, in a matter

Kis

of/