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therefore most respectfully and earnestly ask for the intervention of His Majesty's Government in the matter.

We have the honour to point out that, in our opinion, if the present action of the Japanese Government is acquiesced in by His Majesty's Government, it must have far-reaching effects in discouraging the Chinese Government from dealing with British contractors, and we have reasons for believing that, if His Majesty's Government will, either by entering a protest or by strong representations to the Japanese Government, show their disapproval of the policy now being pursued by Japan, the Japanese Government will most probably withdraw from their present attitude of opposition to the construction of the Hsinmintun-Fakumen extension, because the British interests involved in this contract are of first-class and far-reaching importance to future British commercial enterprises in China.

We have, &c.

For Pauling and Co. (Limited),

(Signed) J. M. SCOTT, Secretary.

[This Document is the Property of His Britannic Majesty's Government.

CHINA RAILWAYS.

CONFIDENTIAL.

[3993]

No. 1.

[January 5.]

THEE 25 MAR 08 SECTION 2.

Sir D. Brynmor Jones, M.P., to Foreign Office.--(Received February 5.)

Dear Sir,

27, Bryanston Square, W., February 4, 1908.

I AM much obliged for your letter of the 16th January. Since I received it I have been looking at the Treaty between this country and Japan and other documents.

The Anglo-Japanese Treaty of the 12th August, 1905, clearly lays down the maintenance of the "independence and integrity" of the Chinese Empire as one of its objects.

The contention is that any Agreement which Japan may have induced the Chinese Government to make which limits its freedom of action is a breach of Japan's duty to the United Kingdom under the Anglo-Japanese Treaty.

A Railway Convention that binds China not to construct a railway parallel to the South Manchurian Railway (no limits of longitude being laid down) prevents any development of North China (so far as railway works are concerned), except with the consent of Japan.

I cannot assent to the proposition that the question of new railways in China is one primarily for arrangement between China and Japan, except, of course, in the sense that every bargain is primarily one for arrangement between the parties to it.

I need hardly say that I have no private interest in the extension of the railway in question; but on public grounds I trust that the Government will make such representations as will induce Japan to withdraw pressure on China, which is being exercised most unfairly to the detriment of the interests of British subjects.

I am, &c. (Signed) D. BRYNMOR JONES.

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