File No. 893.51/1296.
The American Chargé d’Affaires at
London to the Secretary of
State.
No. 2203.]
American Embassy,
London,
January 31, 1913.
Sir: I have the honor to enclose herewith a
copy of a Foreign Office memorandum which, after reciting the decisions
arrived at by the bankers conference, states that His Majesty’s
Government fully approve them and would be glad to learn whether the
Government of the United States is willing to come to an agreement with
the British Government embodying the proposed conditions to govern
future industrial loans made by the nationals of the two countries with
the Chinese Government.
[Inclosure—Memorandum.]
The British Foreign
Office to the American
Embassy.
As the United States Government are doubtless aware, the conference
of the six-power group formed to negotiate the Chinese
reorganisation loan agreed, at its meetings of the 10th and 11th
instant, subject to the approval of the French syndicate: (a) that the restrictions in Article 2 of the
sextuple agreement shall I no longer apply to industrial and railway
loans, which shall be open to free competition subject to such
conditions as the Governments of the six powders may jointly approve
for loans by their nationals; (b) that the
British group should approach their Government with a request that
proposals be made to the other Governments concerned as to the
conditions to be jointly imposed upon their nationals in competing
for industrial loans on the following lines:
- (I)
- The six Governments shall agree not to support their
nationals in any undertaking not conforming to conditions to
be agreed on;
- (II)
- For the protection of investors, the conditions should
provide proper guaranties for the payment of principal and
interest;
- (III)
- Control over expenditure of the proceeds of the loan in
order to prevent the Chinese Government receiving, either by
deposit or otherwise, money free from control;
- (IV)
- The concession to be subject to the approval of the
Legation concerned, and approval to be withheld unless the
conditions are fulfilled;
- (V)
- Detailed conditions to be drafted by the Legations at
Peking in communication with the representatives of the
groups there.
His Majesty’s Government fully approve the above decisions arrived at
by the conference, and would be glad to learn whether the United
States Government are willing to come to an agreement with them
embodying the proposed conditions to govern future industrial loans
made by their nationals with the Chinese Government.
Foreign Office,
January 29, 1913.
