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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[637]

No. 1.

[January 7.]

SECTION 3.

Sir Edward Grey to Sir J. Jordan,

(No. 5.)

Foreign Office, January 7, 1908. (Telegraphic.) P.

PEKING Syndicate in Shansi. Your telegram No. 199 of the 16th November, 1907.

I am informed by the Peking Syndicate that you are of opinion that the limit of the Shansi gentry has been nearly reached, and that their offer may be withdrawn if not accepted at once. The Syndicate suggest that we should hold the Central Government responsible for the difference between the sum that they are prepared to accept and that which the Shansi gentry offer.

The dispatch of engineers on behalf of the gentry has alarmed the Syndicate, who are now willing to accept 3,000,000 taels on the condition that, in the event of foreign capital or advice being required in Shansi, priority will be given to them.

Please inform me of your views on these points.

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