§ 6. Mr. GINNELLasked the Secretary of State for Foreign Affairs whether he is aware that the six-Power group of financiers so manipulate the rates of exchange between London and China that it is impossible for the Chinese Government to draw money from London without suffering a prohibitive loss in exchange; and whether His Majesty's Government will continue to support those methods of exclusive dealing in Chinese finance?
Sir E.GREYThe suggestion in the hon. Member's question is erroneous. It is customary to include in loan agreements with China a clause which lays down the method for fixing the rates of exchange, and both parties to the contract are necessarily bound by such a clause.
§ 7. Mr. GINNELLasked the Secretary of State for Foreign Affairs, whether he has any official information showing that 1024 the six-Power group who propose to finance China with the support of their respective Governments refuse to accept the Chinese terms for a loan of less than £60,000,000, and that the Chinese want only a much smaller sum, and agree to the conditions in substance save as to the gross amount; and, if so, whether His Majesty's Government will continue to support the group in thus forcing China to grant them a monopoly in Chinese finance?
§ Sir E. GREYThe difficulty is not about the amount but the conditions on which any loan, small or large, can safely be made. There is no intention of forcing China to borrow more than she wants or to borrow at all if she does not want to do so.
§ Mr. GINNELLMay I ask if there is not the intention suggested on the part of the group—it is not alleged that the intention is that of the Governments—but the group?
§ Sir E. GREYI am not aware of such intention, or indeed of any very great anxiety to lend money.
§ 8. Mr. GINNELLasked the Secretary of State for Foreign Affairs whether he is, aware that the only interest of Russia and Japan in the finance of the six-Power group is their power to veto the employment of foreign capital in the Chinese territories of Mongolia and Manchuria, except under the exclusive control of Russia and Japan, respectively, in those spheres of their respective pretensions; and whether Chinese interests in these territories are to be left at the mercy of those foreign financiers, whose interest does not go beyond profit-sharing, underwriting, floating the loan, and manipulating the exchange market against China?
§ Sir E. GREYThe conditions of the loan agreement are at present the subject of confidential negotiations, but as has already been stated the Governments concerned will not give their approval and support to any agreement which does not make the real interests of China a primary consideration.
§ 9. Mr. GINNELLasked the Secretary of State for Foreign Affairs whether, having regard to the illegitimate methods practised by the how predominant non-British members of the six-Power group in the Chinchow-Aigun Railway transaction, His 1025 Majesty's Government will take care that no exclusive powers or privileges are given to the group for the ostensible purpose of proper administration, but in practise used for obtaining secret commissions and deflecting orders for materials into certain channels to the detriment of China?
§ Sir E. GREYI am disappointed that the hon. Member should suggest that His Majesty's Government might connive at a fraud such as that which he alleges, and of which I have no knowledge whatever.
§ Mr. GINNELLIf the right hon. Gentleman were shown a verified copy of an agreement for the payment of secret commission out of the provisions of the old loan, to be carried out at the expense of China out of the present loan, would he still support the group comprising the parties to that illegal agreement?
§ Sir E. GREYIf the hon. Gentleman has information which he thinks material to the question, and he sends it to me, of course I will receive it; but until I receive it I can say nothing about it.