[This Document is the Property of His Britannic Majesty's Government.]
[2
nature. It is essential, for instance, if the line is to be completed without a supple- mentary loan issue, that the question of bonds for land purchases be settled at an early date. A solution of the question of control would also appear to be a matter of urgent importance, in view of its immediate effect upon the impending negotiations for conclusion of the Soochow-Hangchow-Ningpo Agreement.
As regards the Nan-p'iao mines, the Imperial Chinese Railway Administration has definitely withdrawn from the joint working Agreement, its expenditure thereunder ceasing on the 28th February. For some time prior to this decision I had been engaged in negotations for the cancellation of this concession, and had offered to arbitrate in reference to the conditions proposed. Arbitration being declined, I wrote on the 5th March to the Managing Director (Chow Taotai), proposing certain alter- native methods of settlement. The Railway Administration has referred the matter to the Board of Communications, but the latter declines to deal with it, his Excellency T'ang Shao-yi informing me that nothing can be done so long as the Board remains under the direction of an acting President. In the meanwhile the Corporation is put to considerable inconvenience and expense, for which no justification exists.
Under these circumstances, I venture to hope that you may be willing to make representations to the Chinese Government in regard to these questions with a view to their settlement.
I have, &c. (Signed) J. O. P. BLAND,
Representative in China.
CHINA RAILWAYS.
CONFIDENTIAL.
[18245]
No. 1.
21622 276
[June Ec
Per 18 JUN 07
SECTION 1.
Telegram communicated by British and Chinese Corporation, June 4, 1907.
Shanghae, June 3, 1907.
PEKING wires:- "With reference to British and Chinese Corporation, Limited, wire of 1st,* inform British and Chinese Corporation, Límited, London, the case of unfavourable market it will be provided for in Agreement. British Consul, Hankow, wires: 'Have reason to believe other British financiers in the field prepared offer at 94 or 95.' Our opinion is security satisfactory, and we strongly recommend authorize E. G. Hillier negotiate on basis offered. Chinese Government are not prepared to receive advice."
Here ends foregoing wire. Re foregoing, if British and Chinese Corporation, Limited, decline to do the business, we suggest Hong Kong and Shanghae Banking Corporation, Banque de l'Indo-Chine (Paris), with approval of Foreign Office, make independent arrangements to do the business. Reply urgently required if E. G. Hillier is to leave for Hankow Wednesday. British Minister, Peking, requests you to com- municate preceding to Foreign Office.
N.B.-Words underlinedt are mutilated in the cypher.
* To endeavour to get loan converted into Imperial Government loan, and to extend it to railway as a whole.
† Printed in italics.
[2525 d-1]