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Laitreb:
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French action in Tonkin.
After the despatch of his telegram of which I had
the honour to give you the substance in my telegram
No. 112 referred to above, Mr. Fraser sent me a further tel-
egram containing the proposals which Pr. Willier had made
to his principals in London suggesting that the negotia-
tions be carried on in the name of the British and Chinese
Corporation for a loan of £1,500,000.
This sum only
represented at the most half of what would be required
for railway construction, ad the Viceroy, alleging that
he could not ask sanction for a further loan, proposed
and the Japanese Back
that the Hongkong and Shanghd Rank should make arrange-
ments for short advances for payment of section contracts
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on adequate security. Mr. Hillier supported this
proposal to his principals.
As I found it difficult to reconcile this with
Mr. Fraser's previous statement that the Viceroy's refusal
to admit French participation was absolute and must be
regarded as a withdrawal from the negotiations, I tele-
graphed enquiries and reminded him that we were officially
18
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committed