From Rooxey Giseer, Peking, May 2%
'The Chinese papers which consistently attack the Minister of Finance, 'Mr. Wang K'o-min, the students, par= Liamentavians and' others, who' also assail him periodically, sometimes drop the Gold Frane istle as a we: pon and charge him with conniving, with the Germans to cheat China' out of something in the redemption of the German bonds. It now develop that for some time past they, have been bombarding the wrong. target. Mr. "Wang K'ormin has. stated several times that he was conducting no negotiations with the Germans and that, so far as he w: concerned, no wattlement wax in sight. In this he told th precise truth, for while negotiations are actually going on, the Germans are conducting them secretly with the President's office. The chief nego later, whether with or without the, President's knowledge, is the much abused Li An-ching, once the P sident's number one be; personal treasurer anid manager. Presumably for the sake of greater secrecy the conferences between the Gernians and ch'ing's agents are now held Tientsin, where it is said that agreement will soon be reached. Phe Chinese involved in the transac~ tion have been telling their friends in Tientsin that they will make from 10 to 15 millions out of the dea German According to the Chinese involyed, Mx. K. A. Balser, Secretary of Legation, went to Tientsin a week. ago to enter into conference with Li Anch'ing or his agents, and it is now said that a settlement awol decision from Germany which is expected by cable within a week or ten days, A Chinese who is interested in the negotiations has since then told the writer that when Dr. H. yon Borch, Counsellor of Legation, eft Peking for Germany about three: weeks ago, he carried with him all the documents' which have a bearing upon the German bond issue, that he proposed to shorten his journey by leaving the steamer in Italy and travelling overland to Berlin by rail and that he promised to get a deci ion from the German Government. his ar-
It has so far been impossible te elicit from any local Chinese a statement of the character of the proposed agreement. The only safe guess is that the Chinese concerned are compromising upon the demands formerly put forward by the Ministry of Finance in the hope of getting ready money.
The 'Germans are by: no means to' tho blamed for endeavouring to settle the case' out of court as it were. Open negotiations, carried on through the proper' Government. organs, get the negotiator nowhere in this age, as the difficulties which. have been put in the way of the: [Gold Franc settlement amply ins trate. The German ease is particularly urgent moreover because] much badly needed Geriman property is hold by the Chinese Government pending & settlement of the bond question. There has been less interest in this question in foreign circles in China than in the Gold Frane case because it is more involved and less clearly understood. sens confess their ignorance Whole issue and ask for light it, that a brief review of the his tory of the German bonds and China's attitude towards them probably will not be a waste of space, especially since some sort of cattlement seems imminent.
The Six Gold Loans. rom 1896 to 1913 Germany made, pated in, six gold loans None of these had been fulredeemed by China up to the time, that she declared war upon Germany' and Austria. Shortly after the de-curation of ¥ 1917, the Chin-exe realized that if the Allies wore jetorious Chinn might be in line for an indemnity from Germany und the Government felt the need of having something in hand with which to bargain when the time: came. To this end it was publicly, proclaimed that all Chinese bonds the German issues were invalid. A
Tittle later, after a few reminders from the Legations, the Government came to the realization that all the German bonds were not held in, Germany but were widely distribut-held in other countries would be ground for protest. They therefore notified the Legations that all! bonds held in non. could be vali 1918, through the presentation of coupons for payment, after which date validation would depend upon documentary evidence proving that the bonds had not been purchased. directly or indirectly from Germany after China's declaration of war. InJuly, 1923, the Chinese Government further notified the Powers that after November of the same year no bonds would be validated tunder any conditions. The legality, of these measures has been questioned by every Power whose nationals. are interested and has been the sub-
Ject of few formal protests on the ground that bearer bonds cannot be invalidated because of a lack of evidence to prove the date when they left Germany, but most of the Powers are content to await China's settlement with Germany and then protest if their nationals re not, protected. at present is shown in the following, table:
Text read from the printed page and cleaned; old type leaves the occasional error.