§ 2. Viscount WOLMERasked whether it continues to be the policy of His Majesty's Government to assure their exclusive support to the Hong Kong and Shanghai Banking Corporation in loan negotiations with the Government of the Republic of China, and whether this policy is due to a definite agreement with the Hong Kong and Shanghai Banking Corporation; and, if so, what was the date of this agreement and on what date does it expire?
§ Mr. ACLANDThe text of the assurance of support given to the Hong Kong and Shanghai Banking Corporation will be included in the Papers which it is hoped to lay before the House to-morrow.
§ 3. Viscount WOLMERasked the Secretary of State for Foreign Affairs if he will state what guarantees are, in the opinion of His Majesty's Government considered adequate for the proper and useful expenditure of the proceeds of loans to the Government of the Republic of China and satisfactory security for the repayment of principal and interest; and whether he is prepared to communicate confidentially to British financial houses of repute, if they so desire, the conditions on which the support of His Majesty's Government in loan negotiations with the Government of the Republic of China may be obtained?
§ Mr. ACLANDI must refer the Noble Lord to the answer returned to the hon. Member for the College Division of Glasgow on the 14th instant. The negotiations between the Chinese Government and the six-Power group being regarded by His Majesty's Government as merely in abeyance, they are not prepared to give support to any other parties desiring to lend money to the Chinese Government.
§ Viscount WOLMERWill the hon. Gentleman answer the last part of the question?
§ Mr. ACLANDThat is covered by the answer.
§ 4. Mr. NORMAN CRAIGasked the Secretary of State for Foreign Affairs whether he is aware that by an agreement under seal, dated the 9th March, 1912, and made between the President of the Chinese Republic and the group of international bankers supported by His Majesty's Government, a firm option was conferred upon 5 the bankers to provide the monthly requirements of the Chinese Government for the months of March, April, May, June, and possibly July and August, 1912, and the assurance by the Chinese Government to the bankers, provided their terms were equally advantageous with those otherwise obtainable, of a firm option of undertaking the comprehensive loan for general reorganisation purposes then already proposed; whether he is aware that the note to the Chinese President was signed only by His Majesty's Government and the Governments of France, the United States of America, and Germany, or the financial groups representing them, respectively, and not by the Governments of Russia, or Japan, or their financial representatives; will he say whether the conversion of the four-Power group into the six-Power group was before or after the 9th March, 1912; and, if before, what was the date of the admission of Russia and Japan?
§ Mr. ACLANDThe answer to the first and second parts of the question is in the affirmative. The Russian and Japanese groups entered the international consortium under an agreement signed on 18th June last. This agreement had retrospective effect so far as concerned participation in the advances already made to the Chinese Government.
§ Mr. NORMAN CRAIGWill that further agreement form part of the Papers which the hon. Gentleman has promised to lay on the Table?
§ Mr. ACLANDI am not quite sure. Perhaps the hon. Gentleman will put down a question it there is anything not included in the Papers which he would like to have.
§ Mr. ACLANDI have already said that Ave hope they will be in the hands of Members to-morrow.
§ 5. Mr. NORMAN CRAIGasked whether any agreement was ever made after the 9th March, 1912, between the Chinese Government and the six-Power group, or their financial representatives, in regard to any loan to be made to the Chinese Government; and, if so, at what date?
§ Mr. ACLANDA subsequent agreement was made on May 17th by which the Chinese Government formally accepted 6 the terms prescribed by the group—at that time a four-Power group—for the supervision of the expenditure of provisional advances. In accordance with the stipulations of this agreement an advance of 3,000,000 taels was made on May 22nd.
§ Mr. NORMAN CRAIGCan the hon. Gentleman say whether any agreement has come into existence by which the six-Power group take the place of the four-Power group so as to make that binding on the Chinese?
§ Mr. ACLANDI would ask the hon. Gentleman to give notice of that question.
§ Mr. GINNELLMay I ask whether Russia or Japan has any interest whatever in the six-Power group?
§ 6. Mr. NORMAN CRAIGasked the Secretary of State for Foreign Affairs whether the four-Power group or the six-Power group supplied the monetary requirements of the Chinese Government for the month of June, 1912; and, if not, whether His Majesty's Government contend that the agreement dated the 9th March, 1912, remained in force as against the Chinese Government, although not complied with by the other parties thereto?
§ Mr. ACLANDAdvances were made to the Chinese Government up to the third week in June under an agreement entered into on 9th March, and reaffirmed on 17th May, when regulations governing the supervision of the expenditure were added. Advances were suspended after it was officially reported to the groups by their auditor, appointed under the agreement of 17th May, that it was impossible properly to carry out his duties under the said regulations owing to want of co-operation on the part of the Chinese authorities. Inasmuch as a party to an agreement cannot free himself from it by a failure to observe it, the groups hold that the Chinese are still bound by the terms, of the agreement referred to.
§ 7. Mr. NORMAN CRAIGasked the Secretary of State for Foreign Affairs whether the agreement dated 9th March, 1912, and made between the Chinese Government and the group of international bankers supported by His Majesty's Government, contained any reservation to the effect that the Governments concerned would not support, and that the group of bankers would not undertake, the provision of moneys to the 7 Chinese Government unless assured that the proceeds of the loan would be effectively spent?
§ Mr. ACLANDThe agreement of 9th March was confirmed and supplemented by that of 17th May. The latter agreement stipulated conditions for the supervision of the expenditure of advances.