The evening times., 1899-01-25
FOREIGN LOANS FOR CHINA.
Terms for Negotiations With on
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ctnIs.
The State Department has received from
the Chinese legation, under date OF Wash
ington, January II, 1899, translation of a
dispatch from the Tsungii Yamen at
Pekin, prescribing the necessary course
to be pursued in contracting foreign loans
Tor opening mines and constructing rail-
roads In China. The legation requests that
THIS be brought to the attention of Ameri-
can capitalists. The dispatch reads:
On the 4th day of the eleventh moon. in the
seventeenth year of Kwangshu December 4 Is9l1
TINS famen transmitted TO the representatives of
foreign powers al Pekin copies OF a joint memo
rial, presented on the 2ith dav Of tba tentb
moon, IN the seventeenth year of KNangsfu NO
Veluber 20 1S9i), by the board of revenue and
th!s 1smen, which provides that in the negotia-
tl0i OF foreign loan by Chinese officials of
Whatever rank, the agent for the interest ed for
elgn capitalists is required 10 report frs, IA tho
representatives of his country at Pekin and a.
certain nom the Tsungli Yamen whether the
MAJ ma 'rT r.. hs Deeh reported TO and sanctioned by
thT ihrohe before making the loan: and that il
Il loan Is made privately notwithstanding the
iact that there is evidence Of imperial sane
n.>the government will neither recognize the
claim, nor undertake 10 compel restitution in
case Of trouble. though the official seal may
nave been affixed 10 the contract On the nh
gay oil the eleventh moon December :, lsqO
copies OF the aforementioned memorial praTa
sent 10 the diplomatic representatives of CJirg
abroad, with the request that copies be counmI,.
nic"teu 10 'he departments for foreign affairs of
the respective countries TO which they were ac-
Sieaned, IN order that the same might be r,,,-
Iiehed ior the Information of foreign capitslisrs
On the 18th day of the sixth moon. in the
,weht! ,s.ei fourth year of kwangshu august H.
10 to'oy iheihofiai was presented to the Throne
by the department of mining and railroads re-
porting the establishment OF that Department AZ
ichih anu recommending that the various prop
ss hs,oTa started @ Dy officials and private indivd
nut not adopted should not be deemed as set
'ie1, ana was duly approved by the Emperor
NOW on the 18th day OF the seventh moon
tSepteInber IL, 1881 copy of memorial Ia the
Throne presented by HUI Yufan. governor al Pc
KIN. was received from the privy council pro
posing that the Tsungli Yainen be commanded to
Inform all the diplomatic representatives OF for
eign powers at Petin. with the view of their
notifying the capitalists OF their respective conn
tries that all contracts for foreign loans entereC,
into by the provincial authorities for the omen
ing OF mines and the construction OF railroads
without the written approval OF the imperial gov
ernment shall be deemed null and vnid topafber
with an imperial decree ordering the Tsungli va
men TO devise means for carrying the same into
effect.
In view of the undeveloped state of the min
eral resources of the various provinces OF the en-
pire and the initial stage in the construction Of
trunk and branch lines of railroads. il has been
TINS lamens policy to allow foreign capital To
he used for these purposes to the end that both
Chinese and foreigners may derive advantages
therefrom. But, in order to obtain good results
affairs must be well managed and money must
be economically expended. 1t is feared that there
may be unscrupulous Chinese persons who claim
ing with fraudulent intent to be conceSsionares
OF this read or that mine. may enter into pri-
vate agreements with foreign capitalists for the
purpose OF obtaining money under false pretences
and that foreign capitalists may become unwt-
ting victims of such fraud and waste their sub
stance to no purpose. This certainly is not the
object OF Government in developing the re-
sources OF the empire, by opening mines and con-
structng railroads for the mutual benefit of Chi
nese and foreigners. Now. this Government de
sires TO give it the widest publicity that all
tracts for foreign leans 10 be expended for the
opening of mines and construction Of railroads in
China in order to be valid. must be certified
and approved by the department of mining and
railroads, and that all agreements privately
tered into with foreign capitalists without the
certi6cation and approval Of the department. TO
matter how large the amount OF subscribed cap
ital may be for the purpose of opening mines and
constructing railroads, shall be deemed null and
void. TO put stop to all fraud and de-
ception and encourage fair and honest dealing.
Copies of this communication have been trans
mtted to the diplomatic representatives of for
eign powers at Pekin, and you requested TO
communicate copy of the TO the Secretary
of State for his information. and when YOU have
received his reply TO send copy to this Yamen.
Dated this 18th day of the ninth moon. in the
twenty fourth year of kwanghsu October 2G,
1s9s).