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

AFFAIRS OF CHINA.

CONFIDENTIAL.

(1477)

No. 1.

124

[January 20.]

SECTION 1.

C. O.

4293

RECO

Sir,

Sir Edward Grey to Chinese Minister.

Foreign Office, January 6th, 1908.

I HAVE the honour to acknowledge the receipt of your note of the 4th instant, inclosing a translation of a telegram from the Viceroy of Canton respecting the Canton-Kowloon Railway.

It is stated in the telegram that the Agreement concluded in 1899 was a private one between Shêng Tajen and the British and Chinese Corporation, and not an Agreement between the two Governments.

It is also stated that if the work of construction is to be carried out by the English Syndicate it is feared that it will be opposed.

In reply, I have the honour to observe that the preliminary Agreement, signed on the 28th March, 1899, was a formal undertaking entered into by Shêng Tajen, "acting under the authority of the Tsungli Yamen," i.e., on behalf of the Chinese Government, and that it is clearly out of the question that such an Agreement should be set aside by one of the parties to the contract without the assent of the other.

I would also point out that, apart from the signature of the preliminary Agreement, there exist binding engagements on the part of the Chinese Government, as recorded in the correspondence between Sir C. MacDonald and the Tsungli Yamen in 1898, under which certain railways were to be constructed by British Syndicates on terms not inferior to those granted in the case of the Lu-Han line. Canton-Kowloon Railway was one of those mentioned in these undertakings.

These and the preliminary Agreement are explicit engagements which His Majesty's Government are justified in expecting the Chinese Government to carry out.

The Governor of Hong Kong has already explained to the Viceroy's Secretary, Mr. Wei, that His Majesty's Government are bound to support the Corporation in obtaining the fulfilment of the promise given in 1898, and that if the Viceroy desires any alteration in the terms of the Agreement his Excellency's proper course is to negotiate with the Corporation on the subject.

In regard to the possibility of opposition being offered if the Corporation commence the construction of the line, His Majesty's Government feel confident that the Viceroy will not fail to visit with severe punishment any persons interfering with the exercise by British subjects of their just rights.

I am, &c.

(Signed) EDWARD GREY.

[1809-1]

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