This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[3456]
No. 1.
[February 12.]
SECTION 1.
170
Sir,
Foreign Office to Messrs. Pauliny and Co.
Foreign Office, February 12, 1908.
I am directed by Secretary Sir E. Grey to acknowledge the receipt of your letters of the 30th ultimo and of the 4th instant on the subject of your proposed contract with the Chinese Government for the extension of the Imperial Railways of North China from Hsinminting to Fakumen.
It has been ascertained that the agreement not to construct any line parallel to or prejudicial to the interests of the South Manchurian Railway was recorded in a Protocol signed by the Chinese and Japanese Governments, by which the former are clearly bound. In Sir E. Grey's opinion, the question whether the proposed line would or would not injuriously affect the South Manchurian Railway is one for the decision of the Japanese Government. His Majesty's Government would certainly assume such a position if the question arose of the construction of a line competing with a British Railway Concession in China.
His Majesty's Government have now been informed that this particular project is one which the Japanese specially had in view when negotiating the Protocol referred to above, and, with every desire to further where possible British enterprise in China, they are therefore unable to support it in the absence of any agreement between the Chinese and Japanese having been come to respecting it.
In these circumstances, I am to suggest that your agent in China, Lord ffrench, should consult with His Majesty's Minister there. Instructions in this sense have been sent to His Majesty's Minister as to the best course to pursue in the matter. Sir J. Jordan already has instructions to assist him, and His Majesty's Government desire to continue their assistance whenever it can properly be given.
[2856 -1]
I am, &c.
(Signed)
F. A. CAMPBELL.