This Document is the Property of His Britannic Majesty's Government.)
CHINA RAILWAYS.
CONFIDENTIAL.
33223
93
REC
[July 2017 SEP 07
SECTION 2.
[AMENDED COPY.]
No. 1.
(22861]
(Confidential.)
Sir,
Foreign Office to Colonial Office.
Foreign Office, July 25, 1907. I AM directed by Secretary Sir E. Grey to acknowledge the receipt of your letter of the 10th instant, regarding the question of French participation in the Hankow- Canton Railway Concession, and to transmit to you herewith, to be laid before the Secretary of State for the Colonies, a copy of a Memorandum on the subject communicated by the French Ambassador, as well as a draft Memorandum drawn up for communication to his Excellency in reply.
It will be seen that, according to the French Government, the participation of the French group in the proposed arrangements with the Wuchang Viceroy must be on equal terms with that of the British group as regards such matters as signature of Agreements, selection of personnel and matériel, and general 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, so as to render it impossible for the Viceroy to apply the proceeds to any object other than railway construction.
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 Hunkow-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 negotiations on the subject. Nevertheless, as the arrangement has been made, Sir E. Grey is of opinion that there can now be no question of repudiating their claim for equal participation, which is, however, subject, it must be remembered, to the condition laid down in the Memorandum communicated to M. Cambon on the 24th January, 1906 (copy of which is inclosed for convenience of reference), that the chairman of the Joint Syndicate must be a British nominee, with a casting vote, who will thus be able to prevent any action being taken which would be likely to be antagonistic to British interests. He agrees with the view expressed by Lord Elgin that any division of the line whereby the construction of the southern section should be intrusted to the French would be objectionable; and as it seems impossible to dispense with French participation altogether, the best course would appear to be to take no further action at present, and to await developments.
Sir E. Grey will be glad to learn whether, taking the circumstances recited above into consideration, Lord Elgin sees any objection to the communication to M. Cambon of the Memorandum which has been drafted.
I am, &c.
(Signed)
F. A. CAMPBELL.
༣འཁེན་
Inclosure 1 in No. 1.
Memorandum communicated by M. Cambon, July 6, 1907.
[2571 bb-2]