8
to discuss the Articles of the Agreement seriatim. The first four Articles are passed with unimportant amendments, the only one on which discussion occurred being Article 3, in regard to which Chou Taotai expresses the view that the Syndicate should not charge interest at a rate higher than 5 per cent. on any advances that may be made prior to the issue of the loan. After considerable discussion this objection is withdrawn, Mr. Cordes explaining the reasonable nature of the clause as drafted. Mr. Bland observes that his Excellency Tang Shao-yi has given formal assurances that, if the Syndicate modified the system of administration and control to meet the views of the Chinese Government, the financial advantages conceded by the preliminary Agreement would not be questioned.
Liang Taotai being summoned to attend his Excellency the Viceroy, the meeting adjourns till Saturday next.
J. O. P. BLAND.
(Signed)
[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[8903]
No. 1.
[March 18.]
SECTION 2.
Sir J. Jordan to Sir Edward Grey.—(Received March 18.)
(No. 50.) (Telegraphic.) P.
Peking, March 18, 1907. THE negotiations at Tien-tsin on the subject of the construction of the Tien-tsin- Chinkiang Railway have proved futile owing to the fact that no definite instructions had been issued to the Chinese Delegates. I have therefore consented to join my German colleague in making verbal representations to the Wai-wu Pu to secure the negotiations being transferred to Peking, to the Board of Communications.
Mr. Bland, the Corporation's Agent, is of opinion that British interests will be quite as much benefited as German ones by the Tien-tsin-Yang-tsze line and appears to attach more importance to this railway than even to the Soochow-Ningpo extension which, he thinks, will encounter opposition which it will be almost impossible to overcome.
While I fully admit the force of this and recognize that the political objections which attached to the Tien-tsin-Yang-taze Agreement have been largely removed by the modifications mentioned in your despatch No. 463 of the 31st December last, I am of opinion that the Soochow-Ningpo negotiations should now be resuscitated and care taken that they suffer no injury from precedence being accorded to the Tien-tsin- Chinkiang Railway scheme.
[2421 s--2]
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