CHINESE LOAN.

Dominion, Volume 5, Issue 1547, 17 September 1912, Page 5

CHINESE LOAN.

REPUDIATED AT PEKIN By Telegraph—Press Association-Copyrielit London, September 15. The newspaper "Observer". states that '1 London house of the highest standing, racked by a leading English bank, signed a- contract for a ten-million loan with the Chinese Minister in London, but that Sir John Jordan, British. Minister at Peking, was instructed to request the Chinese' Government to repudiate the transaction. The Ministers representing the other- five Powers interested supported this: demand, says the "Observer," and China has repudiated the contract.

, A FRENCH VIEW. '•■■'. (Rcc. September, 17, 0,25 a.m;) Paris, Soptember 10. Tho "Journal des Dobats" emphasizes' the importance of France and Great Britain upholding tho Six-Power Syndicate in" China in order to prevent financial groups Eecuring a monopoly and probably disturbing the-harmony of the Powers interested in China. '".'THE SIX-POWER LOAN. Reuter's Agency recently stated that, awing to l the care that has to be taken to eliminate anything of a political character' from tho Chinese loan agreement signed in Paris between the groups of the f-ix Powers concerned, it contains no reference to tho special interests 1 of Russiaand Japan; It will, bo'-remembered that when these two Powers in April last, accepted-, the invitation to join - the fourPower : eroup in advancing money to China, it was on the understanding of a distinct recognition of their special in-' terests in Mongolia/Manchuria; and West-, erii China. • Owih'g to' the secrecy, necessary or nn'irtfcessary, that is still maintained regarding the recent conferences of, bankers,, it Is difficult' to elicit the exact facts of the case. 1 While, on the ; ono hand, it is stated-, that the stipulations made by Russia and Japan when the invitation was accepted still hold good; it is strongly glinted in other quarters that they were not accepted by the .other Powers in connection' with the loan; and quently withdrawn: as tho; result of a compromise. In view of the repeatedlyexpressed determination of the Powers to maintain the integrity of China, and their desire 1 to' a?sist her financially to complete her reorganisation, it may bo that it was regarded as inadvisable that political considerations should figure in the loan' agreement. : Whatever tho reason, in' the Paris agreement there is no reference to the special political interests of any of the Powers concerned.

A- further matter, and one which figured largely in the deliberations.of the bankers, was tlte question of the Powers securing from their own markets. the money.to be lent. In this connection, it is ,'understood that while, on general principles, it was held that the countries concerned should find their own share' of the'loan, it was conceded that, under certain conditions, some of. it might be found abroad. It is believed that Russia will obtain: a portion of the money for the loan from • Trance and Belgium. Japan, it is stated, will provide the money, in her own market. 'While the" general sense of the agreement, is to lend China, in round figures, 460,000,000, it is at the option of the groups' when and.how this shall tie advanced,' and .the groups are not bound-to advance that sum except as in theopinion of the bankers such a course shall be warranted by the situation in China. The advances already made bjfthe Power* are to be repaid out of the loan.