2
appear to be no advantage in the scope of the engagements they took in January 1996 being extended to the fresh points raised in the two last paragraphs of the Memorandum communicated by M. Cambon; nor, more especially, in an intiraation being conveyed to the Viceroy at present that no capital could be furnished from British sources unless he agreed to take the money as an Anglo-French loan in view of the Agreement which has been come to between British and French financiers.
The obvious rejoinder of the Viceroy, if such an intimation were made to him, would be that he had promised the preference to the British group, that he had no concern with any arrangements between that group and the French financiers, and that, failing a British loan, he would consider himself free to obtain the necessary funds from other nationalities.
In view, however, of the apparent determination of the Viceroy only to borrow for industrial purposes without specifying the real object for which the money is required, and the consequent difficulty, if not impracticability, of raising a loan upon the European market, no other course would appear to be open than to let the matter remain in abeyance for the moment, and to wait until circumstances may permit of a modification of his Excellency's attitude.
Confidential.
[ 21 ]
The Under-Secretary of State for Foreign Affairs
presents his compliments to the Under-Secretary of State for
the Colonies
3
and is directed by the Secretary of State
for Foreign Affairs to transmit the accompanying sections of
printed confidential correspondence.for
Governor of Hong Kong.
communication to the
Foreign Office,
14th October
· 1904.
277