CO129-495 - Governor Sir Clementi - 1926 [11-12] — Page 560

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5.

centralisation of finance with disastrou

results to very large British interests concerned; but as under our proposal Becuo foreign obligations would be adequately safeguarded, it is not clear how any vital British interest is con.. cerned to such an extent as to render it desirable to incur the risks involved in propping up from outside a centralised

system of finance.

(4) make systematic abolitics of likin

impossible; but I am not convinced that some scheme at least as satisfactory could not be evolved under the new conditions. In any case in view of the uncertainty surrounding the whole subject is it worth incurring grave risks for what may prove to be only a paper abolition after all?

7. Your proposals with regard to debt con- solidation especially disquiet me. The Chinese delegation, whatever individuals may have said in private, has, I believe, officially consistently maintained the attitude that debt consolidation is not to be included in the treaty. What justifica- tion therefore can there be for assuming that they will accept our scheme, however favourable it may be? And if they do not accept it how can we evade the dangers involved in cur then finding ourselves on the side of the powers who are forcing

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