}

328

DRAFT.

the French Government, but from the papers

bofore him he gathers that Sir E. Grey was

prepared to approve the arrangement provided

that the Belgian interest was eliminated, that

the capital was divided in equal parts between

the Fritish and French Groups, and that the

Chairman of the Company was a British subject

appointed by the British Group and possessing

a casting vote.

6. The impression left on Lord Elgin's

mind, at the time, by the correspondence re-

forred to above was that the proposed agree-

mont would be purely a business arrangement

between certain British and French financiers,

the French not appearing in the negotiations

with the Chinese; and this view was con-

firmed by the statement in M.Franqui's

letter to Mr.Addis of the 11th necember 1905:

"In my opinion the best plan would be for you

to wire the Manager of the Hong Kong and

Shanghai

THE FOREXTON,5, TRG Staking t

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