333
9.
The French, having brought matters to
this pass by departing from the terms of the
original arrangement, now propose that the
British should give up part of the advantages
offered to them by the Chinese undertaking
of September 1905, abandoning in favour of the
French all claim to make the loan required for
the southern section, and contenting them-
selves with the indifferent prospect of obtain-
ing the loans for the Hupei and Hunan sections
10. Lord Elgin takes decided exception
to this proposal, which in the circumstances
seems to him to be peculiarly unreasonable.
Morcover the suggestion that the southern sec-
tion should be built by French capital is
especially objectionable. For the terms of tho
undertaking of September 1905 are apparently
well known in China; the French could, and
probably would, claim the application of its
provisions to themselves, and the Hong Kong
Government