File No. 893.51/2031
The Chargé in China (
MacMurray) to the Secretary of State
No. 2238
Peking,
September 10, 1918.
Sir: Supplementing the Legation’s despatch
(No. 2160) of July 27 last, on the subject of the Kirin forestry
loan, and referring also to my telegram of August 22, 7 p.m. [6
p.m.], I have the honor to enclose herewith a translation of the
note (No. 834) of August 21, by which the Foreign Office
communicated the reply of the Ministry of Finance to my inquiry of
July 27, and a copy of the further note (No. 832) which I addressed
to the Foreign Office on this subject on the 31st ultimo.
I also enclose herewith a clipping from the Peking Leader of August 16,1 reporting a mass meeting held in Kirin for the
discussion of measures with a view to the cancelation of this loan
agreement. In this connection, I take occasion to enclose herewith a
clipping from to-day’s issue of the Peking Leader,1
giving the substance of certain suggestions made by the provincial
authorities of Kirin in regard to the proposed amendment of certain
terms of the agreement.
I have [etc.]
[Enclosure 1—Translation]
The Chinese Ministry for
Foreign Affairs to the Chargé in China
(
MacMurray)
No. 834
Peking,
August 21,
1918.
Sir: We have the honor to acknowledge
the receipt of your note (of July 27, 1918). (The note in
question is then fully quoted.) This Ministry has referred the
matter to the Ministry of Finance which now replies as follows:
The Heilungkiang and Chi-lin [Kirin] forestry and mines
loan contract has been duly signed. The translation
published in the Peking Leader
was probably based on outside report and is not strictly
accurate. The following passages however are accurate:
-
Article 8. The “A” party
agrees to pledge to the “B” party the following
articles as security for the repayment of the loan
and the payment of interest: (1) All the gold
mines and government-owned forests in the two
provinces of Kirin and Heilungkiang.
-
Article 9. Whenever
during the currency of this agreement, the “A”
party desires to contract a loan or loans from
another party on the aforesaid gold mines and
government-owned forests or on other incomes
derived therefrom, the said party shall consult
with the “B” party beforehand.
[Page 165]
Now the Article 8 specifies the forests and gold mines of
two provinces only, as security for a temporary period.
The Chinese Government has this sort of executive power.
This is indisputable. Article 9 only gives priority
rights in case the Government wishes to make further
loans of the said security. A careful scrutiny of the
agreement and the accompanying notes shows that there is
no passage to the effect that those of other nationality
are not allowed to cooperate.
As in duty bound we transmit this statement for your
consideration.
[Enclosure 2]
The Chargé in China (
MacMurray) to the Chinese Minister for Foreign
Affairs (
Lu Cheng-hsiang)
No. 832
Peking,
August 13,
1918.
Excellency: I have the honor to
acknowledge the receipt of your excellency’s note of August 21,
containing the reply of the Minister of Finance concerning the
Heilungkiang-Kirin forestry loan.
In order to avoid possible misunderstandings regarding this
transaction, as his excellency, the Minister of Finance, states
that the text of the loan agreement as published in the local
press is not entirely accurate, I have the honor to request that
the Legation may be furnished with a copy of the actual
agreement with the annexed notes to which the Minister of
Finance makes allusion, for the use of my Government.
I avail [etc.]
