8. Captain FABERasked the Secretary of State for Foreign Affairs on what date he will be in a position to make a full statement concerning the Chinese Loan; whether the Foreign Office is hostile to the Crisp Loan; and, if so, on what account?
§ Mr. ACLANDI will at once inform the House of the main facts concerning the Chinese Loan. His Majesty's Government have acted with the Governments of France, Germany, Japan, Russia, and the United States in supporting an international financial group in its negotiations for a loan with China. We have done so because it seemed very desirable that all the Powers most largely and directly interested in China should be in concert and should not compete against each other, each trying separately to get political advantages for itself out of the situation; and because, without such agreement, the result would probably be a series of indiscriminate loans that would impair the Chinese credit and not be to the interest of China itself or of its foreign trade, in which we are so largely concerned. At the present moment no large loan has yet been concluded with the six-Power group, as the Chinese Government objected to some of the conditions. The principle of conditions that have been considered essential to make any loan sound and really advantageous to China must be maintained, but this is not incompatible with fair consideration of any proposals that China may put forward for an amendment in some particulars of the conditions originally laid down. For the reasons given above it is most undesirable to break up the agreement between the six Powers, but, on the other hand, there is no desire or intention of maintaining it for the purpose of attempting to enforce harsh or unreasonable conditions in China. The Crisp Loan was opposed because, while negotiations were proceeding with the six-Power group, we did not consider that China was free to borrow elsewhere, and we were under an honourable obligation to oppose any outside loan. But apart from this, the loan 330 did not, so far as we are aware, offer adequate guarantees for the proper and useful expenditure of the proceeds.
Sir GILBERT PARKERMay I ask the hon. Gentleman whether the conditions laid down by the six Powers have been made public?
§ Mr. ACLANDI think not.
§ Mr. KINGMay I ask whether the hon. Gentleman can state what are the guarantees for the repayment of the Crisp Loan?
§ Mr. ACLANDI think that will be a matter for the holders of the stock.
§ 10. Mr. GINNELLasked the Secretary of State for Foreign Affairs what advantages are expected to accrue to this country from forcing China to submit to a monopoly in Chinese finance in favour of what is called the six-Power group under German management for the advancement of Russian and Japanese designs upon Chinese territory; what return that group makes or promises for the British pressure to which it owes that monopoly; on what grounds China is thwarted in obtaining instead an independent British loan on terms agreeable to both parties to the transaction; whether a similar veto will be extended to the independent loan China has thus been forced to seek from a Belgian group; and how the imposition of those restrictions upon China can be reconciled with the impartiality of Great Britain and with the integrity and independence of China?
§ Mr. ACLANDI must refer the hon. Member to the answer which I have given to-day to the hon. and gallant Member for Hampshire, from which he will understand that his question is founded on a misapprehension of the policy of His Majesty's Government and of the objects of the six-Power group in negotiating a loan to the Chinese Government.
§ Mr. GINNELLMay I ask why whatever restrictions are deemed to be necessary are not made generally to apply to all who care to conform to the conditions instead of being made in favour of an international group under German management?
§ Mr. ACLANDThe supplementary question of the hon. Member contains a suggestion which is not correct. It would be much easier to answer the hon. Member's questions if they did not contain so many suggestions which are incorrect. Perhaps he will give notice of the question.
§ Mr. ACLANDI see no reason why we should not if a question is put down.
§ Mr. GINNELLThe hon. Gentleman is surely able to answer the question—Why is not a general rule laid down for all who care to comply with it?
§ Mr. ACLANDThe general principle was laid down that it was most advantageous for the representatives of the Powers to act in concert to prevent loans from individual groups which would be used to obtain political advantages for particular countries as against the general advantage of China herself.
§ Mr. GINNELLMay I ask the hon. Gentleman whether the Chinese are not the best judges of their interests?