Reconstruction Scheme Endorsed by Senate Committee Paris, Dec. 28.
The Senate Committee to-day decided by 10 votes to five in favour of reconstructing the Banque Industrielle de Chine.
According to the "Matin," statements by M. Poincaré and M. Lasteyrie, the Minister of Finance, as to the operations for clearing up the situation with regard to the Banque Industrielle show that French finance would not be involved. The operation would be guaranteed by revenues from the salt tax collected by an organization under European control, not by the Chinese Government. The paper says that- these statements very favourably impressed_the Commission.
It was only M. Poincaré's insist tance on urgency of the passage of the Bill in the interests of French prestige in the Far East which secured the vote to-day.
The Reporter, M. Jeanney, declared that it was premature to report the Bill to the Senate as the particulars available were stil! incomplete and he resigned on the Committee deciding in favour of an immediate vote. M. Reynold was thereupon appointed Reporter.
M. Poincaré emphasized that the Government's responsibility would on no account exceed the portion of the Boxer Indemnity devoted for the purposes of the Bill. The gold dollar bonds which must be delivered to the Bank's far eastern creditors would not bear the Government's signature and France contracted no_ financial obligations on them. procedure was simply that of assignment of credit under which the French Govevrnment do not guarantee the solvency of the debtors but the Government insisted that all the Bank's shares should be paid up. This was the sine que non for the Franco-Chinese agreement. In anewer to a question, M. Poincaré said that the protection of the interests of small Chinese creditors would be entrusted to French agents and consuls. The matter of the development of French and Chinese educational and charitable institutions, to which the balance of France's re of the er Indemnity would be devoted, would be subject to the agreement of the two Governments. France hoped that joint control would be arranged.—Reuter.
French Govercment's [Denial of Responsibility: Validity of the Chinese Agreement Paris, Dec. 31.
The Finance Committee of the Senate to-day heard the report by M. Reynold concerning the Bill for refloating the Banque Industrielle de Chine. After a long discussion, the Committee adopted the report. M. Reynold explained the working of the new controlling body to supersede that of the old Banque for a period of 50 years and then discussed the validity of the Franco-Chinese Agreement with regard to the same.
M, Reynold declared that, although it consisted only of an exchange of letters between the representative of the French Government and the Chinese Foreign Minister, the iagreerment might be regarded aa valid. Con-ree however, the possibility of the Chinese Government ceasing payment of the annual instalments of the Boxer Indemnity, M. Rey-naid declared that the holders of the gold bonds could not in any case hold any claim against the French Government, which did not in any wav guarantee the credits which have been transferred to the Bank and could not be held responsible for any nonpayment.
Discussing the question of the credits required for refloating the Banque, the Reporter stated that disciplinary measures had been taker against the administration and the administrators of the defaulting Bank had resigned, but the auditing of accounts and other clearing-up measures had not yet been completed. - These, however, would be effected in due course, 26 the promise given by the Government with regard to the mater wat explicit.—Reuter.
Arter breaking a shop window 125 Szechuen Road and fighting desperately with a foreign police sergeant and Chinese constable last Friday afternoon, a heavily built foreigner was at length taken into custody. When the prisoner, who is said to be a Serbian, was plac in the Central Police Station charge room, he made further efforts to escape. As a result of his alleged violent behaviour at the station, Set. Slater, who with the C.P.C. effected arrest, was severely kicked. The man has been handed over to the French police to be dealt with hibited without permission.
Text read from the printed page and cleaned; old type leaves the occasional error.