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Exclosure in M. Carnegie's No 255 of June 7th 1906.

M. Consul General Fraser to Carnegie: Hankow-Canton Railway resumption and building: forwards.

557

copy and translation of Viceroy's defence of his action.

Copy

No 34.

Sir,

British Consulate-General, Hankow.

26th May, 1906.

Rec. 30th,

0.

30324

Rec'd 17 AUG 1906

Begging reference to Sir Ernest Satow's despatch No 26, of 9th December last and my reply, No 66, of 18th December, I have the honour to forward copy and translation of His Excellency Chang's detailed defence of his policy in regard to the Hankow-Canton railway resumption loan and proposed construction loan.

The Viceroy's account of his negotiations with us is not strictly accurate but it is gratifying to find him and the Hunan gentry, usually called the strong reactionaries, really an advocate of a loan on reasonable terms, while it is the progressives T'ing-fang and his friends who from personal motives prevent England and China from arranging for the prompt construction of the southern trunk line.

I have the honour to be,

Sir,

Your most obedient, humble servant,

Hon. L.D. Carnegie, C.V.O.,

H.B.M. Chargé d'Affaires,

H.B.M. Legation,

Pekin.

Consul-General.

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