(Telegraphic.)
4
(4.)
British and Chinese Corporation to Mr. Bland.
London, February 22, 1908. Hankow-Canton Railway. Telegram of the 17th February received; will reply as soon as possible. The Board is consulting the Foreign Office and French group.
(5.)
Memorandum of Interview of Messrs. Addis and Simon at the Ministry of Finance with M. Caillaux.
A telegram from Mr. Bland, dated Peking, the 17th February, is read as follows: "Hankow-Canton Railway, northern section. Chang Chih Tung offers to negotiate a loan for; asks definite proposal.
"I am of opinion can arrange favourable terms for loan with experimental section built by contract.
Chang Chih Tung, while recognizing priority British option, and indifferent as to sources of capital, are opposed to negotiations for, which would involve direct French interest, and particularly are opposed to any stipulation having regard to provision for materials.
"
Finally intimates if the British do not come to terms he will entertain proposal from Germany. This is very urgent. I recommend the Foreign Office should intimate to the French Government no possibility of Anglo-French successfully competing for under restrictions imposed by French Government.
"See my letter the 3rd October jointly M. Casenave to the Chinese Central Railways (Limited). Is this correct if he can?
For your confidential information, I understand that the French banks share these opinions."
It was agreed that the British group be authorized to telegraph to Mr. Bland to negotiate by himself the conditions of the Hankow-Canton Loan and to sign the Agreement on behalf of the British and Chinese Corporation alone.
It is understood that the Chinese Government will consent to a postscriptum or a supplementary clause stating that the French group should be admitted to a half-participation in the loan.
It was proposed that the French and English groups should combine to negotiate, if the Chinese Government should so request, either together or separately, a loan for the redemption of the Hankow-Peking Loan, and that the French should occupy the same position in the Hankow-Peking Agreement as shall be occupied by the English group in the Hankow-Canton Agreement.
After some discussion it was decided that this last matter might be left for settlement to the respective Governments of France and England.
5
If the French partners cannot accept Chinese offer owing to policy of French Government, assume that the British and Chinese Corporation at liberty to, after due notice to proceed on our account, otherwise likely to lose the business.
(7.)
Draft Telegram from British and Chinese Corporation to Mr. Bland.
Referring to your telegram of the 17th, we have seen French group. They agree to authorize you to negotiate and sign Agreement on behalf of British and Chinese Corporation alone.
We understand from French that the Chinese Government will not object to postscript or supplementary clause stating that French group has been admitted by us to half-participation in loan.
With regard to terms, do your best. We suggest price only 92, as there is no share profits, commission materials 5 per cent., or commuted in proportion to.
Security will be provincial revenues.
Keep finance and construction contract separate.
Telegram of the 25th received.
Inform British Minister.
We presume
Paris, February 24, 1908.
(6.)
(Signed)
C. S. ADDIS.
H. SIMON.
(Telegraphic.)
Mr. Bland to British and Chinese Corporation.
Referring to my telegram of the 17th, Chinese do not oppose French representation
Peking, February 25, 1908. in the impending negotiations re northern section of Hankow-Canton Railway.
I propose with M. Casenave quietly discuss it with Liang Taotai for the purpose of ascertaining Chang Chih Tung's ideas.
For your confidential information, the British Minister informed me the French Government impracticable terms and conditions,
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