File No. 893.51/984.
Draft telegram of Inter-bank London Conference of May 15, 1912, as amended and adopted June 20, 1912.1
Note. The telegram of May 15, 1912, referred to in the correspondence,2 especially in relation to its clause 6, was amended and adopted by the bankers at London on June 20, 1912. It authorized advances to the Chinese Government to a total of 80,600,000 taels (approximately £10,000,000), against which the Chinese Government were to issue one-year treasury bills. The advances were also conditioned upon an agreement which should
- (1)
- specify the purposes for which the advances were required;
- (2)
- provide that the revenues pledged as security should be administered by the Maritime Customs or a similar service;
- (3)
- stipulate that the expenditure of the funds should be subject to supervision;
- (4)
- provide that the advances should be considered a part of the large Reorganization Loan for which the groups held the option;
- (5)
- specify the general basis of the proposed Reorganization Loan, substantially as above;
- (6)
- stipulate that the Chinese Government should not make loans with other parties pending the issuance of the Reorganization Loan;
- (7)
- contain a force majeure clause.
The Chinese Government was also to agree that the groups should act as financial agents of the Government for a period of five years.