This Document is the Property of His Britannic Majesty's Government.] 674
CHINA RAILWAYS.
CONFIDENTIAL.
[17303]
No. 1.
[May 20.]
SECTION 1.
Colonial Office to Foreign Office.~(Received May 20.)
(Confidential.) Sir,
Downing Street, May 19, 1908. WITH reference to your letter of the 2nd March and previous correspondence respecting French participation in the Canton-Hankow Railway, I am directed by the Earl of Crewe to transmit to you, to be laid before Secretary Sir E. Grey, a copy of a telegram from the Governor of Hong Kong upon the subject.
2. Lord Crewe gathers from Sir E. Grey's despatch of the 8th ultimo to Sir F. Bertie (a print of which has been received in this Department) that the Secretary of State for Foreign Affairs has concurred in a proposed arrangement by which the Canton-Hankow Railway loan will be negotiated by the British and Chinese Corporation alone, but by which the French group will be admitted, with the consent of the Chinese Government, to a participation in the loan. His Lordship would, however, be glad to be informed what the exact effect of this contemplated arrangement would be, especially as regards British control over the line.
I am, &c.
(Signed) R. L. ANTROBUS,
Inclosure in No. 1.
Governor Sir F. Lugard to the Earl of Crewe.
(Telegraphic.) P.
[Received May 12, 1908.] REFERRING to Foreign Office prints of the 20th February, Affairs of China, I am opposed to France's proposal. The advent of French enterprise in the Two Kuangs would be very prejudicial to Hong Kong interests, and any French control in the Canton-Hankow line would be opposed to the objects on account of which the loan was made by the Colony.
[2972 u-]
-1]