opy.
2078)
322
Paraphrase of Telegram from sir J. Jordan, Peking,
No.112, dated 17th June, 1907.
21990
. 20 JN 07
Loan to Viceroy of Wuchang.
Mr. Hillier and His Majesty's Consul General at
it
Hankow have presented draft agreement to Viceroy;
stipulates that equal participation should be granted
to Hong Kong and Shanghai Bank and French Bank.
Viceroy categorically refused to permit French
participation stating that this would be unfair after
our objection to Japanese and that the throne would
reject his request for permission to accept a loan, if
he sanctioned it. He wished to borrow from British
alone, as he was under obligation to us only. Third
parties were not bound by our relations with French
financiers, which were our own business.
Refusal is considered final by Mr. Hillier and
Consul General, who consider that negotiations are
thereby brought to a standstill.
The situation is thus much aggravated and compli-
cated. As long as we are bound to the French, the
Viceroy, who evidently favours Japanese will probably
refuse to consider proposals for railway loan from us.
Application