$40.

(4394)

PEKING.

Res

C.O.

287

7229

Decemberra, 110007

Sir:-

With reference to your despatches Nos.9, 18, and

30 of January 12th and 24th of this year, I have the

honour to state that towards the end of October Mr.

Bland, the representative of the British and Chinese

Corporation, mentioned to me that, according to his

information, the Viceroy of Wuchang would be prepared

to consider proposals for a construction loan for the

Canton Hankow Railway on the basis of the Canton-Kow-

loon final loan agreement, the terms of which were at

the time practically agreed upon.

It appeared to me that, in view of the nature of

the engagement contained in the Viceroy's letter of

September 9th, 1905, on which Mr. Eland was relying,

it was at least doubtful whether the open intervention

of a French Representative at this stage might not be

used by the Viceroy as a pretext for evading our

Right Honourable

Sir Edward Grey, Bart., M.P.,

claims

&c., &c., &c.,

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