This Document is the Property of His Britannic Majesty's Government.}

AFFAIRS OF CHINA.

CONFIDENTIAL,

205

[August 18.]

SECTION 2.

A

No.

Sir E. Satow to the Marquess of Lansdowne.--(Received August 18.)

(No. 152. Secret.)

(Telegraphic.) P.

HANKÓW-CANTON Railway.

Peking, August 18, 1905.

An agent of German Bank was sent to Ilankow to make offers to the Viceroy of Wuchang. His Excellency declined them, but appears to have given the agent details The Hong Kong and Shanghae of the arrangement which he is negotiating with us. Bank have been informed by the German Bank that this constitutes a violation of their Agreement. I think the Germans must be aware of the suggestion made by the Colonial Office that the money for the Hong Kong Government's loan to the Viceroy should be advanced by the Hong Kong and Shanghae Bank.

The French and Belgian Ministers are displaying much interest in our arrange- ment with the Viceroy of Wuchang, and are working to prevent it from being concluded.

Chang has seen the Reuter's telegrams announcing the conclusion of the Agreement between Great Britain and France with regard to the Szechuan Railway. He has expressed to His Majesty's Consul-General at Hankow his great concern, the Chinese being strongly opposed to France's gaining a footing in Szechuan.

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