§ Mr. GINNELLasked the Secretary of State for Foreign Affairs, whether, in view of the forthcoming prospectuses of developments in China on behalf of the international financiers calling themselves the six-Power group, he will define what authority those persons have from the British Government for using this description of themselves as a means of floating their projects; whether the name correctly implies, as it is intended to do, that the six Powers in question guarantee to investors repayment of their money, with a fixed rate of interest, to be collected, if necessary, by force and appropriation of territory or of rights, irrespective of the success of the projects or their utility to China; on what evidence the Powers have satisfied themselves as to the merits of the projects and the security for investors, and in what way they have made themselves responsible for the remunerative application of the money, whether by assuming "control of contracts, appointments, privileges, and the purchase of materials, or by requiring these to be dealt with by public competition in the open market; if the guarantee or obligation of whatever nature is common to all the six Powers; what provision is made for the event of serious disagreement among those Powers apart from China or relative to China; and whether the obligation assumed extends to enforcing the secret terms common to agreements between the Chinese Government and the financiers under which the latter derive additional and subsequent advantages not disclosed to the public in which investors do not participate?
§ Sir E. GREYI have no knowledge that the financial groups who are negotiating a loan with China intend to adopt any particular designation and as has been already stated in this House, though we give diplomatic support, His Majesty's Government incur no pecuniary liability whatsoever in respect of the loan. They will not 1906 give diplomatic support to any loan which does not provide adequate guarantees for the proper expenditure of the proceeds and satisfactory securities for the payment of principal and interest. The arrangement will be a financial one and the groups will be represented on an equal basis in any combination that may be formed. I see no reason to anticipate any disagreements between the Powers and I am unaware of any such secret terms as suggested in the question in agreements between the Chinese Government and financiers.
§ Mr. GINNELLCan the right hon. Gentleman say whether the American section of the six-Power group is identical in personnel with the American group with which the Chinese Government contracted for a loan in 1910?
§ Sir E. GREYNo, Sir, I cannot say off hand.
§ Mr. GINNELLI beg to give notice that I will ask that question.
§ Mr. PONSONBYasked whether the Russian Government have notified that they will only participate in the six-Power loan to China on condition that special Russian interests in outer China are recognised; whether these interests infringe the policy of the open door and the integrity and sovereignty of China in this district; and whether His Majesty's Government are prepared to give diplomatic support to a loan on such conditions?
§ Sir E. GREYThe conditions of Russian participation in the loan to China are at present the subject of confidential negotiations between the Powers and financial groups concerned. His Majesty's Government would refuse to approve any loan the conditions of which infringe the policy of the open door in Manchuria and Mongolia for British commerce.
§ Mr. PONSONBYCan the right hon. Gentleman say on what revenues and assets of the Chinese Government the loan is secured?
§ Sir E. GREYNo, Sir. The loan has not yet been concluded. The negotiations are still going on.
§ Mr. PONSONBYasked whether in the loan agreement between the Chinese Government and the banks of the six Powers at Peking there is any provision for effective supervision of expenditure by foreign experts?
§ Sir E. GREYNo loan agreement has yet been concluded. His Majesty's Government have from the first made it a condition of diplomatic support of any loan which may be negotiated with China that there should be adequate guarantees for the proper expenditure of the proceeds. The best means of securing these guarantees are now being considered by the Powers and financial groups concerned.