accordance with instructions from H.B. M's. Charge d'Affaires, the fol-Jowing despatch is published for the infor-motion of British Subjects.
J. MARKHAM, B. Ins Consul, H. B. M's. Consulate, Shanghai, 20th July, 1871.
Tuly 10, 1871. No. 21.
Sim,—I have received from the Earl Granville copy of " letter which His Lordship has caused to be addressed to the Council of Foreign Bondholders, in regard to the amount of support which Her Majesty's Government are prepared to give to the claims of holders of Foreign Bonds.
Earl Granville, in order to prevent any misapprehension as to the amount of support which Her Majesty's Government are prepared to afford to British holders of foreign bonds, is desirous that the Council of Foreign Bondholders should clearly understand that His Lordship in no way departs from the views and principles entertained and frequently laid down by his predecessors, regarding the undesirability of Her Majesty's Government encouraging hazardous loans to Foreign Countries, oF of their giving to such transactions an impetus, such as would be afforded if it were understood that the repayment of loans, made probably at a high rate, would be enforced by the power of Great Britain, The policy of Her Mujesty's Gove ment with regard to the general question of the assistance to. be given to foreign bondholders who fail to obtain their rights, has always been and will continue to be, ted to unofficial support and friendly remonstrance with: such Foreign States as from time tu time fail to meet their obligations.
Her Majesty's Government are i way party to private loan transactions wit Foreign States. Contracts of this nature rest only between the Power borrowing, and the capitalists who enter into them as speculative enterprises, and who are content to undertake extraordinary risks in the hope of large contingent profits, Further, it is scarcely necessary to. point out the endless troubles which certainly would arise if the active intervention of England were exerted to redress the grievances of Bondholders. Independently of the expense which would necessarily be incurred, and- the risk of international complications, forcible measures, if adopted towards small States, which for the most part are the ones' complained of, would subject this country to grievous impatations. For such and other obvious reason lier Majesty's Government have determi ed, as a matter of wise policy, to abstain from taking up, as international questions, the complaints of British subjects against Foreign States, which fail to make good their engagements in regard to such pecuruary transactions, or to interpose, except by good offices, between Bonditulders and the States by which they may be wronged.
Her Majesty's Government will, however, be at all times ready to give their unofficial support to Bondholders in the prosecution of their claims against defaulting States, and such parties may always count upon the moral influence of England being exerted, although unofficially, on their behalf, but the parties must not expect that foreille measures, such as reprisals, and still less any of a more decidedly warlike character, will ever be resorted to by Her Majesty's Government in support of their claims.
You will cause this despatch to be printed in the Shanghei paper for the information of the British Community in China, Your obedient servant,
Text read from the printed page and cleaned; old type leaves the occasional error.