787
China and any claims preferred by bondholders must be strictly limited to claims financial.
Were this not so, the agreement made ten days later (on September, 1905) by H.E. Chang and H.B.M. Consul General at Hankow, (whereby a British preferential right to finance Chinese Government Railways in Rupee was conceded in return for the loan of funds required to repurchase the Hankow Canton Railway concession) would evidently be valueless,
and H.E. Chang's position in the matter open to serious objection.
On the 6th May, I saw H.E. Liang Tun Yen and reminding him of our previous understanding in regard to negotiations for the proposed loan, suggested that as H.E. Ch'en Kuei-lung had now assumed office, the matter might be taken up without further delay. H.E. Liang, being on sick leave, said he was unable to take any official action; he advised me, however, to write to H.E. Chang, suggesting that negotiations be commenced. This I did on the 9th instant, but without receiving any reply.
If His Excellency's objections to negotiating the proposed loan are due to the Belgian protest, it would appear advisable that the Chinese Government should be requested to pay off the outstanding bonds and to give effect to the understanding recorded in the agreement made with H.B.M. Consul General at Hankow.
Sd/ J.O.P. Bland.
20 May 1908.