This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
(39825)
No. 1.
7
378
[November 23.]
SHOTION (2. C. O.
45640
1 1 OFC 05
Sir Edward Grey to Sir F. Bertie. (No. 663.) Sir,
Foreign Office, November 23, 1906.
M. CAMBON told me to-day that the Japanese Financial Agent had been endeavouring to raise a loan in London. But he had found the City indisposed to lend money, probably on the ground that English financiers considered Japan had borrowed as much as her resources would secure. He had then gone to Paris, and had found the French financiers more favourable. But they had said that it would be necessary for them to ascertain whether the French Government would look with favour on their raising a loan for Japan. The Japanese Ambassador had therefore been to see M. Pichon, and the latter had said that he was favourable to a loan, but he thought English financiers should co-operate with French financiers in making it. M. Pichon had also said that this would be doing a considerable favour to Japan, and he would therefore expect some help in return. There was an Anglo-French consortium for certain railway interests in China. As the Americans had now withdrawn from railway matters in China, and their place would probably be taken by the Japanese, he would like the Japanese to join the Anglo-French group, and work with them in connection with the railways. M. Pichon had also stipulated for something in connection with French claims in Corea, but that was a matter which did not concern the railway question.
M. Pichon now wished to have my views.
I said I was certainly favourable to the co-operation of English financiers, though the latter were very independent, and it was not in the power of the Government to influence them to any great extent.
I was also personally in favour of the entente between the Japanese and the Anglo-French railway group on political grounds. But it would be necessary for me to ascertain the views of the English interests concerned, and I could give no definite answer without being assured that no objections would arise from them. I observed that the Anglo-Japanese alliance did not include commercial matters of this kind, and the field was therefore entirely open for such an arrangement. I had not hitherto discussed railway matters with the Japanese at all, except to remark casually now and then that our own railway interests in China were meeting with great difficulties.
I am, &c.
EDWARD GREY.
(Signed)
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