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Enclosure in Sir C. Satow's No.160 of April 9th, 1906.

No. 2.

Canton-Hankow railway resumption loan: forwards extract from Viceroy Chang's memorial on.

The inclosures.

M. Consul-General Fraser to Sir C. Satow.

18892

Sir,

British Consulate-General, Hankow.

(22nd March, 1906.

Received (14th April)).

JUN 2 1906,

I have the honour to forward in Chinese with an

370

accompanying translation an extract from the Viceroy Chang's memorial on his redemption last autumn of the China Development Company's concession for the construction of the Canton-Hankow railway, as published in the Universal Gazette of the 15th instant.

This account of the negotiations is far from agreeing with the facts established in our telegraphic correspondence, these facts being probably garbled to make a better defence against the attacks which have been made on him for borrowing from England to pay off America instead of freeing the enterprise from all foreign shackles.

Thus,

His Excellency's omissions seem to me serious. Besides keeping silence as to the Wai Tu Pu's communication to you of the Decree approving the loan, he implies that the loan was absolutely unconditional. His Excellency's despatch of 9th September, which was enclosed in my despatch No. 45 of the following day, can be construed to make the privileges given us dependent

Sir Ernest M. Satow, G.C.M.G.,

His Majesty's Minister,

etc. etc. etc.,

Peking.

on

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