Drawing upon the archives of the British Treasury which are housed in the National Archives at Kew,this paper discussed about the views held by Frederick Leith-Ross,who had been the adviser of the Treasury,with the other major department heads of the British government,on the loans to the China Merchants Steam Navigation Co.,Ltd.,during the years of 1936-1937.This paper unveiled the rarely known and complicated process of the negotiation between the governments of China and Britain.The documents analyzed by this paper shown not only the tactics...