A clear comprehension of the: nature of the British loans to China ig desirable not only on account the extent of the British interests at stake, but also to remove certain not uncommon misconceptions arising from failure to distinguish between different classes of Chinese foreign Joans. An important item in Bois Vistic propaganda against the called imperialist nations in relation to China is the charge levelled at China's foreign creditors of being political aggression, the loans being represented as one-sided transactions, forced upon a helpless country to the detriment of its general interests.
'Whatever grounds may or may not exist for such an imputation in the case of some other loans, an analy' of Great Britain's contribution to Chinese finance will show little ways to function commercially. The [so-called "unsecured" debt. consists of obligations with no guarantee of [payment from @ specified source of Revenue or else secured on revenues, which being free from any foreign supervision, have become' entirely'
Before proceeding to deal with the British loans a word is needed re-fearing the Boxer Indemnity which [was imposed by the Powers on China after 1900 to pay for the damage to foreign lives and property perpetrat~ ed by the Boxers. Of the original Jamount of 450 million Haikuan taels fat fixed exchanges representing the equivalent of G74 millions sterling, nearly half (Russian, German and Austrian shares) was cancelled as result China's entry into the War. The balance, less about £6,000,000, has been remitted to China by the principal Powers including Great Britain, In order, however, to give 'a just impression of Great Britain's {friancial relationship with China, it! may be permitted to remark that of the Boxer Indemnity Great Britain's share was 11 per cent. only In view the importance of British ins terests, as reflected by various criteria not least the fact that more than half China's trade at the time was in the hands of Great Britain, it may be wondered whether British sufferers received a just share of compensation. No useful purpose would be served by going into ancient history but this at least may be said in evidence of the spirit which has rimated and still animates British sentiment for China, Although part of the Russian in-Jdemnity, 29 per cent. of the total, may have been due to material losses. generally speaking the remarkable! disparity between the British share and that of most other Powers was Jaccounted for by the different views fof their duties taken by the Indemnity Commissioners of the different nations. Whereas the: British Commissioner, applied the strict rule of English Inw in the matter of recoverable damages, other Commissioners took a more liberal view of the measure of compensation te which their nationals were entitled!
British financial transactions are deservings of such a charge, The amount of China's. national debt has yet to be determined. Nor: i it easy Lo arrive with any certainty at the figure of her foreign indebt-eelness. That. portion of the latter, however, which excludes the ind minate mass of Provincial obligations, responsibility for which is not recognized by the Central Government, and which also leaves out of account the Boxer Indemnity, may be roughly stated in the round figure of £150,000,000 sterling.
Of this indebtedness, the figure of which is all that is required for the purpose of this paper, the sum of £85,000,000 is usually' classified as sec tired, and the balance some £65, 000,000 as, unsecured or inadequately secured. The category of "unsecured' loans includes Government, indebtedness for the purchase of rolling. tock and other material required for the maintenance of works of public! utility.
Text read from the printed page and cleaned; old type leaves the occasional error.