§ 11. Mr. NORMAN CRAIGasked whether the Chinese Government was consulted by the Governments concerned, or their financial representatives, as to the inclusion of the Kussian and Japanese groups in the international consortium; and whether the Chinese Government assented to this extension?
§ Mr. ACLANDThe answer is in the negative.
§ Mr. GERSHOM STEWARTMay I ask whether Japan or Russia obtains any political privileges by coming into the consortium?
§ Mr. SPEAKERNotice should be given of the question.
§ Mr. GINNELLThe purpose of the group being to lend money to China, and neither Russia nor Japan having any money to lend, may I ask—
§ Mr. SPEAKERThe hon. Member must give notice.
§ 12. Mr. N. CRAIGasked whether the Chinese Government at any and what time after the Russian and Japanese groups entered the international consortium on 18th June, 1912, confirmed to the six-Power group thus constituted its then existing agreement with the four-Power group?
§ Mr. ACLANDThe answer is in the negative. The inclusion of the Russian and Japanese groups in the international consortium was a matter for the groups themselves, and was effected by them alone with the approval of their respective Governments. The new groups became ipso facto bound by the existing agreement, and, as was stated in reply to a question by the hon. Member on the 28th inst., its operation became retroactive. The Chinese Government, however, had on 17th May approved the proposed expansion of the old consortium and have never since questioned the validity of an extension of their agreement with it to the two additional groups.
§ 13. Mr. CRAIGasked whether the agreement of the 17th May, 1912, between the international group, then the four-Power group, and the Chinese Government was provisional or immediately binding?
§ Mr. ACLANDThe advance made on 17th May was a provisional advance, which was intended to be covered by a reorgani- 424 sation loan, but the conditions as to supervision of expenditure applied to the money advanced, and became immediately binding.
§ Mr. N. CRAIGMay I ask whether the agreement is provisional in its terms in reference to advance?
§ Mr. ACLANDI do not understand what is meant by a provisional agreement. There was an agreement made with regard to the conditions of expenditure of the advance. Those conditions became immediately operative; there was nothing provisional about them.
§ Mr. N. CRAIGWas there any reservation contained in the agreement which would enable the position to be considered at a later time?
§ Mr. ACLANDNo; it was a perfectly definite agreement, and certain conditions as to the way the advance should be expended were agreed upon at that moment, and they came into operation at once.
§ Mr. N. CRAIGHas the hon. Gentleman any objection to laying the agreement on the Table?
§ Mr. ACLANDI will consult the Foreign Secretary.
§ 14. Mr. NORMAN CRAIGasked the Secretary of State for Foreign Affairs whether he is aware that after the international group, then the four-Power group, had signed an agreement, on the 17th May, 1912, with the Chinese Government for an advance of £10,000,000, their representatives requested the Chinese Minister of Finance to spend no part of this advance on the defences of Mongolia and Manchuria; and will he say whether such a condition is financial or political?
§ Mr. ACLANDSo far as I am aware, no request of the kind indicated was made.
§ 15. Mr. NORMAN CRAIGasked the Secretary of State for Foreign Affairs whether he is aware that the Eastern Bank, Limited, one of the banks in the Russian group of the six-Power group, is a British company; whether in February or March, 1912, that company approached the Foreign Office to ask for its support in regard to a loan to be concluded with the Chinese Government; whether the Foreign Office replied in terms suggesting that such support would be accorded; whether he is aware that the contract was concluded on 14th March, 1912, by the Eastern Bank and the Banque Sino-Belge, 425 and that official recognition was then asked for; and whether official recognition was refused on the ground that the Foreign Office was committed to the Hong Kong and Shanghai Banking Corporation?
§ Mr. ACLANDThe hon. Member will find replies to all parts of his question in the correspondence relating to the Chinese loan negotiations, which has just been published.
§ Mr. DAVID MASONWill the hon. Gentleman inform the House what is the object of the Foreign Office in supervising these loans?
§ Mr. GINNELLWill the hon. Gentleman say whether those conditions comprised any restriction on China in the administration of its own affairs?
§ Mr. ACLANDThey comprised conditions as to the expenditure of the money. If we did not make any conditions as to the expenditure of the money, we consider it might lead to bankruptcy in China, which is not desirable.