The history of the late loan is not devoid of interest. Some five months were spent in jad the ne tiations. The loan was finally and definitely signed on the 28rd of March, barely seven weeks from the time when the instalment of the Japanese indemnity falls due in London (8th May). No wonder that the rumour found circulation that China intended to repudiate it. But China never had any such intention. The long delay and interminable negotiations were owing to a variety of causes, Two Boards, that of Revenue and the Tsungli Yamen, had: it in_charge; two officials, their Excellencies Wing and Chang, President and Vice-President. respectively of the first named Board and members of the latter, were the active agents in conducting the negotia-tious. Prince Kung and ELE. Wu Ting-fen had also the, subject in oversight, The Board of Revenue had almost settled the matter with a British syndicate as long ago as November last. The Charge d'Affaires and Minister of the British and German Legations respectively, with the Hongkong and Shanghai Bank, stepped in at the end of November and the former requested the British syndicate representative to stand aside for a few days to enable them to get their proposals forwarded to the 'Tsungli Yamen. This was done and then began the weary negotiations. 'The second hundred millions were promised by the Chinese government to Great Britain' and Germany. This promise was made to Sir Nicholas O'Conor and much use was afterwards made of it as an argument for granting the loan to the Anglo-German syndicate, The late British Minister also recommended the Chinese to issue conjointly the fifty millions to be given to each. The Chinese themselves were anxious to give the remainder of the loan to these tio countries as a set-off against and to equalise, as it were, the previous Toan given to Russia and wee. It was not held desirable to get further into the debt of Russia. As your correspondent intimated at the time, China wanted from the very first to divide it equally between the four countries. There was a talk for some time of making the loan one hundred and fifty millions, to cover the cost of the retrocession of Liaotung and the deficit in the price between that fixed by the lenders and par, and to have given this fifty millions to the United States, but this was de from as no pressure was brought to bear by the United States to participate asa State in the loan. China must borrow another hundred millions to settle her account with Japan. After paying the thirty millions for Lisotung, and the first Japanese instalment, she had on hand some thirty millions, including over a million sterling in the Hongkong Bank andin the chartered Bank a million sterling. She means to spend the balance of the present loan on a new.navy and military matters. This leaves her thus with the necessity of borrowing another hundred millions with which to pay Japan. As the security of the Customs is well nigh exhausted by the loan, it seems hardly Tikely there will be a among Western nations, banks, and syndicates for the next loan. The notion that the Customs Revenue was inadequate to meet the second loan was of course utterly without foundation. Some additional security will require to be provided and it is here where the diffi will come in. China will either require to pay a greatly increased interest or accept a much lower price, or grant railway, mining, or other concessions. But to return to the present Joan. Tt has e strong back of Lord Salisbury. Through the tie)
Affaires here snd through the Chinese Minister in London, the British Prime Minister has told the Chinese Government his views and his wishes in plain, forcible,
Text read from the printed page and cleaned; old type leaves the occasional error.