9
332
Peking, No. 494,
Deo. 5, 1911. ("China," Part LXIX. No. 601.)
Peking, No. 55,
{"China," Part LXX. No. 216.)
Peking, No. 196,
Apr. 20, 1912,
15
(China Part LXX,
No. 581.)
8
Finally, it was decided to refer the matter to all the banks at Shanghai connected with any of the obligations secured on the customs for their views.
22. Meantime the Chinese Government had defaulted upon the monthly paym of interest on the Anglo-German Loan of 1896, and Sir J. Jordan without more ado insisted that they should take immediate steps to place the whole revenue receipts of the Maritime Customs both at those treaty ports still in their possession and at those in revolutionary hands under the direct control of the Inspector-General of Customs. The Chinese Government officially assured Sir John that they had already decided upon this course, and that the customs revenue receipts at all ports throughout the country was henceforth entirely under the control of Mr. Aglen for the purpose of meeting China's foreign loans and indemnity obligations.
Institution of Control of Maritime Customs by the Diplomatic Body at Peking.
.23. After consulting the managers of the banks at Shanghai a formal arrangement was eventually agreed upon between the Chinese Government and the Diplomatic Body. | Under this arrangement the Diplomatic Body were practically appointed by China as trustees to see that all the obligations secured upon the customs revenue were duly met. This arrangement, though modified subsequently in one or two matters of detail which will be explained later, is still in force, and constitutes the authority under which the Diplomatic Body to-day exercise their control over the Chinese customs revenue.
24. The text of the agreement between the Diplomatic Body and the Chinese Government of the 30th January, 1912, runs as follows:--
"1. The International Commission of Bankers shall consist of the managers of the banks interested in the service of all outstanding loans secured by the customs revenue contracted previous to 1900 and/or the indemnity payinents. The said commission shall decide all questions of priority of claim between foreign loan payments, and shall draw up a schedule of the various payments to be made in, this connection for the guidance of the commissioner of customs at Shanghai.
"2. The banks chiefly interested, viz., the Hong Kong and Shanghai Banking Corporation, the Deutsch-Asiatische Bank and the Russo-Asiatic Bank, shall be custodians of the customs funds at Shanghai. [Since amended, se paragraphs 32, 34 and 40.]
3. The inspector-general of customs shall account to the commission appointed for the net customs revenue until such time as the Chinese Government are in a position to resume payments of loans and indemnity.
"4. The inspector-general of customs shall arrange for weekly remittance of net revenue froin all collecting points to Shanghai.
"5. The inspector-general of customs shall arrange that the net revenue accumulated at Shanghai shall be divided weekly in as nearly as possible equal amounts between the Hong Kong and Shanghai Banking Corporation, the Deutsch-Asiatische Bank and the Russo-Asiatic Bank for account of the loans concerned and indemnity payments, and the commissioner of customs shall be authorised to draw upon these accounts for loan payments as they fall due, according to the priority of such loans as determined by the commission of bankers in terms of clause No. 1,
"6. If normal conditions are not restored by the end of 1912, then at that time an account shall be taken of the surplus available for the indemnity, and such account shall be sent to the Diplomatic Body for their decision as to its disposal. [Since cancelled, see paragraph 32.]
7. The commission shall furnish to the Diplomatic Body at Peking, through the consuls at Shanghai, a quarterly report showing the appropriation of the revenue received.
"8. The above arrangement is subject to future revision should circumstances
require it."
25. A fresh point arose almost at once. Certain portions of the native customs revenue had been assigned by the Final Protocol of 1901 as security for the indemnity (see paragraph 14). Under the new arrangements these native customs revenues, collected by the Maritime Customs, were to be treated in the same manner as the. maritime customs revenue proper and to be divided for custody amongst the three custodian banks (the Hong Kong and Shanghai Bank, the Deutsch-Asiatische Back and the Russo-Asiatic Bank, i.e., the three banks principally interested in the pre-Boxer loans (see clause 2 of the Agreement of the 30th January, 1912-paragraph 24, supra)).
The Yokohama Specie Bank pointed out that this native customs revenue should properly be divided amongst all the banks interested in the Boxer indemuity, and not merely between the three custodian banks, seeing that this revenue was one of the securities for the indemnity under the Final Protocol of 1901 and was not affected by the pre-Boxer loans. The claim was reasonable, and it was decided that this native Peking, customs revenue should be divided amongst all the indemnity banks in proportion of May 7, 1912. each bank's share in the indemnity. These banks were at that time-
Hong Kong and Shanghai Bank.
*Deutsch-Asiatische Bank.
Russo-Asiatic Bank.
Yokohama Specie Bank.
Banque de l'Indo-Chine.
International Bank.
Banque sino-belge.
Default on Indemnity Payments consequent on Revolution.
No. 217.
("Chius,"
Part LXX, No. 664.)
Peking. No. 862. Sept. 6, 1912. {"China,"
Part LXXI,
No. 211,1
May 9, 1912.
26. In the meautime, owing to the disturbances in the country, default on To Treasury. indemnity payments by the Chinese Government had occurred as from the 30th he September, 1911. Payment was not resumed until October 1912, when the October Part LXX, 1911 instalment was paid.
No. 392.) H. & S. Bank,
Oct. 26, 1912. {"China," Part LXXI,
No. 853 A.)
Dec. 21, 1912.
Part LXXI,
27. Later the Chinese Government, acting upon the advice of the Inspector- Peking, General of Customs, proposed to devote the whole surplus customs revenue, after No. 265, Tel., meeting all loan service, towards payment of the indemnity arrears due from November ("China," 1911 to December 1912 (3,400,0002.), before meeting current indemnity payments as No. 560) they fell due. But eventually this proposal was dropped and the suggestion made that payment of indemnity arrears should be postponed. To this His Majesty's Government No. 4, Tel., were ready to assent.
Poking,
Jan 4, 1913. ("China," Part LXXII, Nos. 16 and
18.)
No. 512, Tel.
18
Part LXXII, No. 38.1
28. Both Russia and France, the former of whom was interested as to 29 per cent. Peking, and the latter as to 15 per cent. of the whole indemnity, were less complacent. Russia Dec. 28, 1912, even hinted that she might take active measures to obtain possession of the salt or some "China," other source of revenue in default of the indemnity payments. The Russian Minister notified the Chinese Government that Russia insisted on full payment of the indemnity Peking, due, and in view of this attitude Sir J. Jordan proposed to withhold British consent to No. 18, Tel To this His ("China," the proposed postponement if other Powers adopted that attitude. Majesty's Government reluctantly agreed.
Jao. 13, 1913.
Part LXXII, No. 40.)
To Poking, No. 12, Tél.. Jan. 16, 1913.
("China,"
Part LXXII, No. 48.)
{"China,"
29. On the 1st February, 1913, the November 1911 and December 1911 arrears of H. & S. Bauk, indemnity were paid; on the 3rd February the January 1912 arrears; on the Feb 1, 1918. 4th February the February 1912; and later arrears were all eventually paid up out of Part LX11, the proceeds of the Reorganisation Loan which was signed on the 26th April, 1913.
No. 116.)
H. & S. Bank, Feb. 8, 1913. ("China," Part LXXII, No. 128.) H. & S. Bank, Feb. 4, 1913. ("China," Part LXXII, No. 134.)
H. & S. Bank. July 22, 1913. Peking, No. 149, Tel., June 30, 1913.
("Chins,"
Part LA XII,
• The Deutsch-Asiatische Bank dropped out in 1917 on the suspension of relations between China and No. 627.) Germany.
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