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Mr. Cordes undertook to prepare the new draft of Final Agreement as proposed by Chow Taotai, and hoped to have the same ready for discussion on Saturday next. The Syndicate was prepared to omit the condition of control by Board of Commissioners, and generally to follow the system of administration laid down in the Canton-Kowloon Railway Agreement, on the understanding that none of the financial advantages conferred by the Preliminary Agreement be withdrawn or curtailed. It was upon this assurance given by his Excellency Toug Shoa-yi that the Syndicate accepted the important modication in the Agreement which the Chinese Government now desired.
After some further general discussion of the conditions of the Canton-Kowloon Railway Final Agreement and of the present financial outlook, the meeting adjourned at 4:30 P.M.
[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
C.0.
[March 27.1 4492
[9964]
No. 1.
SECTIONPA
(REG: 24 APR 07;
Chinese Central Railways to Foreign Office.-(Received March 27.)
Sir,
110, Cannon Street, London, March 26, 1907. BY instruction of my Board of Directors, I have the honour to inclose copy of a telegram recently received from Mr. Bland on the subject of negotiations for the Final Agreement of the Tien-tsin-Yang-tsze Railway. These negotiations, as you are aware, have now been going on for something like four years, and repeated modifications have been introduced to meet the wishes of the Chinese Delegates, both as regards control and also as to the general financial conditions. My Directors, acting in concert with their German associates in the enterprise, have reduced the terms of the original Preliminary Agreement to a point beyond which it is not possible to go, and no further negotiation would now seem to be feasible except in regard to trivial details. A short time ago we were informed by cable that, owing to difficulties arising from the insufficient powers conferred on the Chinese Delegates, Mr. Bland and his colleague, Mr. Cordes, had moved the British and German Ministers to have the negotiations transferred from Tien-tsin to the Board of Communications direct, the latter being apparently the body in which is now vested the control of all railway matters. The telegram now inclosed shows that the negotiations are to be continued at Tien-tsin with the addition of a representative from the Board of Communications,
But Mr. Bland and his colleague, being apparently satisfied that nothing will result from the additional representation on the Chinese side, now propose to move the British and German Ministers to ask the Chinese Government to state officially whether they will or will not accept the Agreement in the modified terms as recently offered. The German Minister is stated to be inclined to take this step, but Sir John Jordan, in default of definite instructions, is not disposed to move, and the Board are urged to request the Foreign Office to authorize him to take joint action in the sense indicated. I am to add that we have received a similar request from the German Directora in Berlin, acting on a telegram from Mr. Cordes, showing that the latter agrees with Mr. Bland that such action is required under what is described as the present critical circumstances.
My Directors, though unwilling to do anything that would precipitate a deadlock, are yet of opinion that the time has come when some effort should be made to bring about a solution of this long pending question. They are not aware on what grounds the present moment is said to be critical, but on general principles they think that, considering the long time that has been spent in endeavouring to meet the Chinese views that there is nothing now left for them to concede, the Chinese Government may very properly be called upon to declare their mind on the question of the Tien-tsin- Yang-tsze Railway. If they are determined that under no circumstances shall this railway be built or built by foreign capital, then the sooner it is known the better. The Chinese Central Railways will then at least have a legitimate claim for compensation for the large outlays they have incurred for surveys and otherwise on the faith of the Preliminary Agreement, as also for breach of the Agreement itself, or in the alternative they may fairly claim to have the financing and construction of other railways which the Chinese Government may prefer to see made.
Under these circumstances the Board of Directors submit for the consideration of the Secretary of State the propriety of instructing Sir John Jordan by cable in the sense indicated or otherwise of taking such steps as may appear proper to bring about a solution of this long standing question.
I have, &c. (Signed) THOMAS GILBERT, Secretory,
[2421 dd)
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