*

Mis

33

not judge properly till the Viceroy took them into his

confidence.

The main points of this conversation wore telegraphed

by me the same day (July 5) to His linjesty's Consul

General at Hankow with directions that Mr.Hillier should

impress on the Vicaroy the necessity of telegraphing

fully and frankly to the Wai Wu Pu, and on the 7th inst.

I learnt from Mr.Prager that the Viceroy had sent for

him and Mr.Hillier "as he feared that there might be

difficulties of legalization of the loan". Mr. Fraser

asked further whether, in the event of the Viceroy break-

ing off negotiations on the plea of participation by the

French, he would be justified in suggesting that there

might be other British financiem who are free to not

alone. Mr.Fraser apprehended that unless he took some

Buch step the Viceroy would consider himself at liberty

to regard his obligation towards us as discharged.

To this I replied on the same day (July 7) that the

Viceroy could hardly maintain his attitude regarding

French participation since the Wai Wu Pu offered no

objection

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