19 
will render effective the aim of His Majesty's Government to prevent any return to the 
former unprofitable policy of international competition in Chinese loans. 
Under these circumstances, Sir E. Grey feels that the Hong Kong and Shanghai 
Bank can hardly be expected to give up the position of sole issuing bank in England 
for the present loan, and, though he would be glad to see you secure financial partici- 
pation in the loan, he cannot urge the Hong Kong and Shanghai Bank to share the 
issue in London with you or other banks. 
With regard to the penultimate paragraph of your letter, I am to state that, as far 
as this department is aware, the sole issuing banks for the loan in Paris and Berlin will 
be the Banque de I'Indo-Chine and the Deutsch-Asiatische Bank respectively. 
Finally, I am to add that it would be impossible for Sir E. Grey to suggest to the 
Hong Kong and Shanghai Bank that they should give a percentage of their share of 
the loan to the Belgian group, and that the most reasonable course for the latter to 
adopt would appear to be that they should in the first place approach their Russian 
partners for this purpose. 
I am, &e. 
W. LANGLEY. 
No. 20. 
Eastern Bank, Messrs. J. H. Schroder and Co., Messrs. H. D. Sassoon and Co., and 
Messrs. Brown, Shipley, and Co. to Foreign Office.—(Received May 31.) 
Sir, 4, Crosby Square, London, May 30, 1912. 
WE have the honour to acknowledge receipt of your letter of the 25th instant, 
and although it is with the greatest reluctance that we are again approaching you on 
this matter, we feel that, in justice to ourselves, we should point out to you that, as 
regards the issue in Paris and Berlin, your department must have been misinformed, 
as the issues will not be made by the Banque de I'Indo-Chine and by the Deutsch- 
Asiatische Bank alone, but all large banks in France (the Crédit Lyonnais, Société 
générale, Comptoir national, Banque de Paris, Banque de 1'Union parisienne, Crédit 
industriel, &c.) and Germany (Deutsche Bank, Disconto-Gesellschaft, Dresdner Bank, 
Darmstidter Bank, Messrs. Bleichroder, Messrs. Mendelsohn, &c.) will also appear in 
the prospectus as issuing houses. 
Tt is for this reason that we ask that the Hong Kong and Shanghai Bank should 
in fairness, be induced to co-issue with our group in London. 
We are, &ec. 
J. S. HASKELL, Director 
(For the Eastern Bank). 
BROWN, SHIPLEY, ano Co. 
E. D. SASSOON axp Co. 
J. HY. SCHRODER axp Co. 
No..21. 
Foreign Office to Eastern Bank, Messrs. J. H. Schrader and Co., Messrs. E. D. Sassoon 
and Co., and Messrs. Brown, Shipley, and Co. 
Gentlemen, Foreign Office, June 21, 1912. 
I AM directed by Secretary E. Grey to acknowledge the receipt of your letter 
of the 30th ultimo, in ‘which you state that the issues of the Chinese reorganisation 
loan will be made in Paris and Berlin by all the large banks in France and Germany. 
In reply I am to inform you that Sir K. Grey is aware that, in a certain sense, both 
the Banque de I'Indo-Chine and the Deutsch-Asiatische Bank share the right of issue 
with the other banks which form the French and German groups, but the methods of 
negotiating and issuing foreign loans in France and Germany are different from those in 
force in England, and in consequence the position of the Banque de I'Indo-Chine and of 
the Deutsch-Asiatische Bank is in this sense, but in this sense only, not on the same 
footing as that of the Hong Kong and Shanghai Bank. 
In France and Germany any large issue, in order to be successfully dealt with, 
must be, and is, placed through the important French and German financial houses, and 
their innumerable branches all over the country. In London it is customary : for 
dividual houses to negotiate and issue. only interesting the leading houses in the city