クレ
orders with Messrs. Reiss, Kassey and Company and with the
Canadian firm which they represent?
of the Consortium.
-
The answer is that all railways now contracted for by
the Chinese Government authorities in which the British and
Chinese Corporation are concerned, vis. (a) completion of
the Canton-Hankow Railway; (b) Pukow-Sinyang Railway; and
(o) Nanking-Hunan Railway these two latter are to parallel
the Yangtze River between Hankow and Nanking have been
pooled in the International Consortium which came into being
in 1920 on the foundation of an agreement between the British
American, French, and Japanese Governments and a sorrespond-
ing agreement between Banking Groups fully representative of
those four countries. The Chinese have always been suspicious
They regard it as an international ring
which will fores up prices against them and will aim at
financial control of China on the pretext of security for
10 ans. The result of Chinese suspicions is that since its
inception in 1920 the Consortium has done no business whatever
with China, and its influence has been wholly negative.
negative influence has been a benefit since it has put an end
to wild borrowing on the part of unprincipled Chinese Govern-
the kind of borrowing which left in its trail those
unsecured debts which have been so difficult a question between
China and the foreign Powers (especially Japm), The Con-
sortium, in fact, has acted as a kind of financial blockade of
Ching.
This
Apart from the restraining influence of the Consortiu
China is unable to raise money in foreign markets for railway
construction and other purposes, since foreign investors will
mot lend money to her in present conditions, so railway con-
struction/
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