[This Document is the Property of His Britannic Majesty's Government.]
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Chinese Government a reasonable time option for issuing the loan, following the Canton-Kowloon Railway precedent, and meanwhile to make advances as provided for in Article 3. He contended that the Chinese Government could not ask the Syndicate to fix a price giving a small margin of profit on flotation, and at the same time to take all risks of financial or political crises which the Syndicate could neither foresee nor control.
Discussion of Article 16 being concluded, Mr. Bland points out that the subsequent Article defines the system of control. With a view to determining the basis of further negotiations he therefore requests Mr. Feng to ask the Yu-chuan Pu for such definite instructions as will enable him to reply to the letter addressed by Mr. Cordes and himself to the Chinese Commissioners on the 9th instant.
Mr. Cordes, supporting this request, observes that unless the Canton-Kowloon Railway Agreement's system of control be recognized as the precedent to be followed, and unless a definite understanding be recorded in regard to maintenance of financial terms based on the Preliminary Agreement, the negotiations are at a deadlock. Mr. Feng declines to ask for instructions on these points, stating that he is directed by the Board of Communications to report on the discussion of the draft Agreement, clause by clause, and that, having no knowledge of any assurances given, he caunot make inquiry on the subject.
The representatives of the Syndicate state that at the recent interview between the Wai-wu Pu and the Ministers for Germany and Great Britain it was distinctly under- stood that the Yu-chuan Pu's special Representative would have full authority, and instructions from that Board. It is reasonable therefore to request that he obtain such instructions on questions vitally affecting the progress of the negotiations. If he will not do so, it will be necessary to refer the whole question again to Peking.
The meeting adjourns at 5.30 P.M,
CHINA RAILWAYS.
CONFIDENTIAL.
[17904]
(No. 183.) Sir,
No. 1.
[June 3.]
RECE
SECTION 19 18 JUN 07
Sir J. Jordan to Sir Edward Grey.-(Received June 3,)
Peking, April 16, 1907. WITH reference to my telegram No. 59 of the 15th instant, I have the honour to inclose copy of a note which I addressed to Prince Ching on the 12th instant, requesting that negotiators might be appointed to discuss and arrange the terms of the final Agreement for the Soochow-Hangchow-Ningpo Railway. I called at the Wai-wu Pu on the afternoon of that day, mentioned briefly the circumstances under which it had been agreed to defer these negotiations until the Canton-Kowloon Agreement was concluded, and stated the purport of my note, which had apparently not yet been read by their Excellencies.
The Grand Secretary, Ch'u Hung-chi, let fall some desultory observations about the number of railway questions there were to deal with, and added that he understood the Agreement to which had referred as implying that we had abandoned the negotiations for this line; but, after some discussion, his Excellency Tong Shoa-yi, speaking for the Wai-wu Pu generally, said that the contents of my note would be duly considered.
I have, &c.
(Signed) J. N. JORDAN.
Inclosure in No. 1.
Sir J. Jordan to Prince Ching.
Your Highness,
April 12, 1907. YOUR Highness will remember that in July of last year an understanding was come to between His Majesty's Chargé d'Affaires and the Wai-wu Pu that the negotiation of a final Agreement for the Soochow-Hangchow-Ningpo Railway should rest until the final Agreement for the Canton-Kowloon Railway, the discussion of which was then about to commence, should be concluded.
The latter Agreement was signed by the Representatives of the Chinese Govern- ment and the British and Chinese Corporation on the 7th March, and I have therefore the honour to request that negotiators may be now appointed to discuss and arrange the terms of the final Agreement for the Soochow-Ilangchow-Ningpo Railway.
I avail, &c. (Signed) J. N. JORDAN.
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