[This Document is the Property of His Britannic Majesty's Government.,
CHINA RAILWAYS.
CONFIDENTIAL,
27192 543
[May 27.30 JUL 07
SECTION 1.
[17034]
(No. 90.)
(Telegraphic.) P.
No. 1.
Sir J. Jordan to Sir Edward Grey.(Received May 27.)
VICEROY of Wuchang's loan.
Please see your telegram No. 56 of the 23rd instant. Japanese Minister informs me that he has "suggested
Peking, May 25, 1907.
to his people to conforin
with China's engagements to us as regards railways south and west of Hankow, of which I have furnished him with the full particulars.
On the 21st instant, however, His Majesty's Consul-General telegraphed that, since his interview with Bland and Hillier, the Viceroy had changed his mind, and now desired the Board in Peking to take the initiative as regards a railway loan. If, however, a loan could be raised, in reality for railway construction, but nominally for the general development of the province, he would be willing to undertake it. The Viceroy asked the Consul-General whether he thought that part of the South Man- churian Railway Loan could be diverted by the Japanese to meet Hupei's needs.
On learning, at an interview with His Majesty's Consul-General on the 23rd instant, that the Board in Peking had refused to initiate a railway loan, the Viceroy again alluded to his suggestion of a loan of 1,000,000, really for railway construction, but nominally for the exploitation of the mineral resources of the province, but such a subterfuge cannot, in Hillier's view, as in mine, be entertained. Until the Viceroy is satisfied of the definite withdrawal of the Japanese no progress can be made with our negotiations.
I am informed by the Japanese Minister that he has instructed the Japanese Consul to assure the Viceroy that his engagements to us, within the limits they cover, will be respected by the Japanese. He adds that Odagiri is leaving Hankow.
I am, however, by no means satisfied that the Viceroy's suggestion of a loan nominally for general purposes will not be taken up by the Japanese, and I doubt whether they realize that such undermining of our position would produce a most unfortunate impression.
I have repeated this telegram to His Majesty's Chargé d'Affaires in Tôkiô.
[2481 dd-1]