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[This Document is the Property of His Britannic Majesty's Government C.0.
35745
CHINA RAILWAYS
2 OCT 08
[September 9.]
SECTION 1.
CONFIDENTIAL.
[31623]
No. 1.
Sir Edward Grey to Sir J. Jordan.
(No. 115.) (Telegraphic.) P.
Foreign Office, September 9, 1908. A TELEGRAM from Paris has been communicated to us by the Hong Kong and Shanghai Bank, according to which French group cannot join a 5 per cent. loan for the redemption of the Peking-Hankow Railway. They urge British to insist upon the Chinese carrying out the offer of a 4 per cent. loan verbally made by the Board of Communications, or to withdraw from the business. If you have not got details, Hillier can supply them.
Hong Kong and Shanghai Bank agree that it is very undesirable to make loans to China with the proceeds of which she can do much as she pleases without receiving proper guarantees from her; they ask whether we will support them at Peking strongly in insisting that loan should not be made elsewhere; they represent that it is impossible for them to stand aside while loan is made by Belgians or others, of which they say there is great danger. I should be glad to have your views on the matter.
[1940 i-1]