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control; and that it is the duty of the British
group to point out to the Viceroy that only on that
condition can they consent to negotiate with His
Excellency. The French Government also consider that
the destination of the loan should be expressly
stated in any Agreement that may be come to, 80 as
to render it impossible for the Viceroy to apply the
proceeds to any object other than railway construc-
tion.
I am to request that you will submit to the Earl
of Elgin the following observations in regard to this
matter.
This Department is in no way responsible for the
inclusion of the French in the proposed Hankow-Canton
Railway Agreement, the negotiations for which were
carried on by the British and Chinese Corporation
under a misapprehension and before this Department
were aware that they intended to enter into negotia-
tions on the subject. Nevertheless, as the arrange-
ment has been made, Sir E. Grey is of opinion that
there can now be no question of repudiating their
claim
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