[This Document is the Property of His Britannic Majesty's Government.]
27192
CHINA RAILWAYS.
CONFIDENTIAL,
[22232]
No. 1.
Jaly 6.]
549 40 JUL 07
SBCTION 1.
1
Mr. H. Lowther to Sir Edward Grey.-(Received July 6.) (No. 124. Confidential.) Sir,
Tokió, June 10, 1907. WITH reference to your telegram No. 21 of the 29th May and to my despatch to the Foreign Office No. 121 of the 31st May, on the subject of the Anglo-Chinese Agreement as regards the construction of railways in China, I have the honour to transmit herewith copy of the reply from the Japanese Government to the representa- tions of His Majesty's Embassy respecting the granting of a loan by Japan, which would be prejudicial to British interests.
Viscount Hayashi welcomes the opportunity of explaining the attitude of Japan in the matter, and states that any action of the Imperial Government and the Specie Bank, which may have caused apprehensions to His Majesty's Government," was due to ignorance of the existence of any Agreement between Great Britain and China.
As soon as the existence of the Agreement became known, the Japanese Govern- ment directed the Specie Bank to withdraw from the affair, and assurance is given that rights already acquired by Great Britain in regard to railways in China will be respected.
Attention is at the same time drawn to the proviso in a letter from the Viceroy to His Majesty's Consul-General at Hankow respecting the employment of Japanese engineers, and at the same time it is pointed out that repeated assurances have been given by the Chinese Government that the Concession for the construction of a railway from Amoy and Foochow to Hankow will be granted to Japan.
The note concludes by expressing the opinion that harmonious co-operation in China, in financial as well as political matters, is in the interests of Great Britain and Japan, and utters the hope that the two countries will, in the future, consult more and more together without reserve, and have increasing confidence with one another.
I had the honour of telegraphing this day the substance of the above communication from the Ministry for Foreign Affairs.
I have, &c.
(Signed)
HENRY CROFTON LOWTHER.
(Translation.)
(No. 5. Confidential.) Sir,
Inclosure in No. 1.
Viscount Hayashi to Mr. H. Lowther.
June 5, 1907.
I HAVE the honour to acknowledge the receipt of your note, No. 57, Confidential, of the 31st ultimo, in which, under instructions from His Majesty's Government, you state that they have learnt that an attempt is being made by the Yokohama Specie Bank to induce the Viceroy of Hukung, Chang Chi Tung, to raise a railway loan, and you accordingly quote an assurance given by the Chinese Govern- ment to Ilis Majesty's Government in 1905, and express the hope that no loan may be granted by Japan which would be prejudicial to British interests in regard to railways in China.
It would appear that His Majesty's Government are not fully aware of the whole course of events from the beginning. A short statement of the case will therefore, I think, be very useful in making clear the position of Japan in this matter, and in removing the apprehensions of your Government.
[2571 ƒ~1]
}