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Auction: 14010 - Fine Coins, Banknotes, Bonds and Share Certificates of China and Hong Kong
Lot: 1501

Chinese Imperial Loan Agreement for a £1 million loan dated 23rd February 1895, between Roland Finch, agent of Duncan Stewart & Co. and the Chinese Imperial Government represented by H.E. Zhang Zhidong, Hu Jiacheng (Provincial Treasurer of Nanjing) and Liu Yanyi (signed "Liou"), Chinese Head of the Imperial Maritime Customs, as well as Thomas Lowndes Bullock, the British Consul of Shanghai, signed and sealed by all parties, text entirely handwritten in both English and in Chinese, all bound together, a very fine and unique document representing the Chinese governments borrowing to finance the war with Japan.

There were two £1 million loans raised in 1895 by the Chinese Government, the first issued by the Chartered Bank of India, Australia and China Ltd. and the second by a group of German banks. Both were secured on Chinese Imperial Maritime Customs revenue but the second was also secured on Kiangsu likin (internal tax on the movement of goods) which is not mentioned in this document. We should assume then that either this loan was not drawn down or that it is in fact the loan that was issued by the Chartered Bank.
Zhang Zhidong (1837-1909) was an eminent Chinese politician during the late Qing Dynasty and a key political figure who advocated military and political reform. He became known as one of the "Four Famous Officials of the Late Qing" (together with Li Hongzhang, Zeng Guofan, and Zuo Zongtang). He served as a member of the Grand Council and held various high posts as Governor and Viceroy.
During the 1890s Zhang made strong attempts to modernise the army and navy. He created the Guangdong Naval and Military Officer's Academy, the Hupei Military Academy and when he was serving as the governor of Nanjing, Zhang invited a group of German of officers to train the local garrison into a modern military force.
In the wake of the first Sino-Japanese War, Zhang was strongly opposed to Taiwan being ceded to Japan. The present document forms a key part to Zhang's proposal to the Imperial Court to take out substantial loans from Britain in return for mining rights on the island. Furthermore it was hoped that Britain would use its navy to protect the island. However, by May the Japanese had managed to take control of most of Taiwan's strategically important West-coast and the Chinese government was forced to order all civil and military officials to leave.
Roland Finch was the representative of Duncan Stewart and Company, an engineering firm with strong links to the mining industry.
This is an important document relating to the Chinese Struggle for Modernization in general and the History of the Late Qing and Taiwan in particular.



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Estimate
HK$200,000 to HK$250,000