CONFIDENTIAL
C.O.
6120
Pre 21 FEB 05
165
Sir E. Satow to Sir Edward Grey.-(Received February 7, 5 P.M.)
(No. 13.) (Telegraphic.)
Peking, February 7, 1906,
YOUR telegram No. 16 of 3rd February, 1906: Canton-Kowloon Railway. On 12th December Wai-wu Pu wrote that, in response to their request, the Viceroy had promised to delegate an official to negotiate with the Corporation's representative. From telegrams afterwards received from Canton and Hong Kong, I learn that Viceroy did appoint two officials to meet representative, but that they merely said Viceroy wished to pay survey expenses, and cancel preliminary Agreement.
On 27th December I wrote to the Wai-wu Pu objecting, and asked for Viceroy to be ordered to issue such instructions to his Delegates as would insure negotiations being conducted in accordance with the ordinary rules of international business.
Learning later that instructions sent by the Wai-wu Pu were not sufficiently explicit, I wrote a strong note on 12th January, requesting that definite instructions be sent to Viceroy to discuss contents of the draft final and working Agreements, copies and translations of which I communicated to Tang Shao-Yi.
On 24th January Governor of Hong Kong informed me that Viceroy had asked him for text of Northern Railways Loan Agreement of 1898, stating that if he found it satisfactory, he would open negotiations on that basis.
I suggested, in reply, that to give text would be equivalent to conceding that point, and that it would be better to stand out for negotiations on the basis of draft Agreements. If, in the course of discussion, Viceroy's Delegates brought forward proposal above mentioned, the British negotiator might examine it, but not show any eagerness to accept it.
Governor replied, 26th January, that he had asked Consul-General to inform Viceroy that the Railways Agreement had no bearing on the preliminary Agreement of 1899 with regard to the Canton-Kowloon line, and if his Excellency had any object beyond causing delay, he could obtain copies from his own Government.
Chinese New Year holidays have prevented my pressing the matter, and I am waiting for text of Viceroy's request for Loan Agreement, which it will be necessary to quote in addressing the Wai-wu Pu.
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