CONFIDENTIAL.
C O.
33764
RECY
REG 13 SEP 06.
623
Mr. Carnegie to Sir Edward Grey.-(Received September 6, 2:45 P.M.) (No. 165.)
Peking, September 6, 1906, 3:40 P.M.
MY telegram No. 162 [of 5th September]: Canton-Kowloon.
Three meetings held 23rd August, 29th August, 3rd September.
From Minutes given to me this morning by Bland there appears to be two important points of difference:
1. Price of loan issue; and 2, 5 per cent. commission to Corporation on material bought.
As regards No. 1, Tong proposes a fixed price of 961⁄2, or a price of 41⁄2 below issue price.
As to No. 2, Tong offers 5 per cent. commission on purchases of British material only, with the understanding that British goods after tender shall have been preferable at equal prices.
Bland asks 5 per cent. on all material purchased outside China.
I have recommended Bland to persevere, but he tells me that he has telegraphed to the Corporation, and no doubt wants Legation to intervene.
The points of difference do not appear to me so important as Bland considers them, and, from my knowledge of Tong, I feel sure that interference from us at this stage to obtain a better issue price or more commission would not expedite matters.
I think that Corporation should be asked to instruct Bland to insist on patience.
He should not expect to conclude a compact of this kind with Chinese negotiators in a fortnight.
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