12581

CONFIDENTIAL.

Hongkong.

0.0

358

Goverment House,

Hongkong, 11th March, 1904,

NOT TO BE USED ON.

Sir,

7141

40. ff

COLONIAL OFFICE

With reference to my Confidential Despatch of the 30th January last,

I have the honour to transmit for your information the enclosed copy of translation of a letter (received from a trustworthy source) from the Chinese Minister at Washington to the Director of Chinese Railways on the subject of disputes that have arisen between the Belgian and American shareholders in the Railway Concession which is held by the American China Development Company.

2.

The course that I should like to see adopted would be for the Chinese Government to cancel the Concession on the ground that its terms have been infringed by permitting persons who are not Americans to acquire shares in it and to re-grant it to a British and American Syndicate.

3.

I can only repeat that I regard it of vital importance to this Colony and to British Trade generally that England should have a substantial and if possible a controlling interest in any Railways connecting the Yangtze Valley with South China.

THE RIGHT HONOURABLE

ALFRED LYTTELTON, K.C., M.P.,

I have the honour to be, Sir,

Your most obedient Humble servant,

Officer Administering the Government.

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Page 361

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