[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
[July 27.]
735
CONFIDENTIAL.
[25666]
No. 1.
SECTION
C O 38281
REC
1R 17 OCT 06
Mr. Carnegie to Sir Edward Grey.—(Received July 27.)
(No. 143.) (Telegraphic.) P.
WITH reference to the piratical attack on steam-ship "Sainam," His Majesty's
Peking, July 27, 1906. Consul-General at Canton, to whom I repeated your telegram No. 134, has replied that he has not raised the question of compensation. He is convinced, he adds, that any such demand, unless strongly supported by His Majesty's Government, is useless locally.
Respecting the missionary's family, he supplied the following:
"MacDonald left an estate of 500l., his income was 300l., with house provided. His parents and sister in Scotland are partly dependent on him, to an extent of less than 40%. With the exception of an annuity of less than 25l., his widow and two sons, aged 13 and 7, have no other means of support."
It would be advisable, I think, that before action is taken here, any claim you may decide on should be presented to the Viceroy by His Majesty's Consul-General.
[25742]
No. 2.
Mr. Carnegie to Sir Edward Grey.-(Received July 27.)
(No. 144. Secret.)
(Telegraphic.) P.
Peking, July 27, 1906.
I HAVE been privately approached by Tong on the following :- "The raising of a large loan for the construction of trunk railways is contemplated by the Chinese Government. Tong wishes me to ascertain whether a leading English financier would come to Peking to treat, as he considers that it is in London that the best terms can be obtained. He does not wish to have direct dealings with the Hong Kong and Shanghae Bank or any concern whose business has, under public obligation, to be shared with financial institutions of other countries. He lays stress on the fact that the Chinese Government desire that their bargain with our financiers should be made quietly without the other Legations interfering. He stipulates for close secrecy and especially that no information should be given to the Chinese Legation in London. He would not mind if the Hong Kong and Shanghae Bank were eventually in the background."
As security for the loan, he said sufficient revenues would be provided. He spoke of 100,000,000 taels (£15,000,000) or more, but was indefinite as to the actual amount. He did not deny that one of the trunk lines was Canton-Hankow, but he did not specify them. The redemption next year under the Loan Contract, Article 5, of the Lu Han railway (see "Rockhill's Treaties," p. 234), is probably also contemplated.
The Chinese Government now see, no doubt, that without foreign capital railway construction cannot proceed on a large scale, and it would distinctly be to our interest, I think, to give the most favourable consideration to Tong's inquiry.
[2073 dd-1]