[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[September 17.]
SECTION 1.
[32425]
No. 1.
Mr. Addis to M. Hamberg.-(Communicated by Mr. Addis September 17, 1908.)
Dear M. Homberg,
I HAVE your letter of the 15th instant.
September 17, 1908.
It is not the telegram from M. Casenave to you, but your telegram to M. Casenave,
which is in question, and of that you have not supplied me with a copy.
I gather, however, that, as a matter of fact, a Confidential telegram was dispatched by you to M. Casenave, containing what was virtually, at least by inference, a counter-offer of 94 per cent. for 5 per cent.-4¼ per cent. loan, and that, by some means or other, this reached the ears of the Chinese.
It is unfortunate that this should have happened at a time when Mr. Hillier was, in deference to your wishes, insisting upon the 93 per cent. option.
However, we have to face the facts as they are, and not as we would like them to be. Now that the Chinese are aware of your 94 per cent. proposition, it is obviously useless for us to hold out any longer for 93 per cent.
We have accordingly wired to Hillier to settle at 94 per cent., if better cannot be done, provided Chinese give satisfactory assurance that proceeds will be applied to redemption Peking-Hankow loan bonds and that interest is paid by Chinese on full amount of loan from date of issue.
I note that you do not care to accept any liability for the moiety of the loan required next year, and, in order to simplify matters, we have asked Mr. Hillier to limit the amount of the loan to a single issue of 5,000,000l, which we estimate should be sufficient to redeem the existing Peking-Hankow Railway bonds.
I inclose copy of my telegram to Mr. Hillier, and shall be glad to hear that you approve of its terms.
Inclosure in No. 1.
Yours truly,
(Signed)
C. S. ADDIS.
Mr. Addis to Mr. Hillier.
September 17, 1908.
(Telegraphic.) RE your wire of the 14th, you may make final offer 94 per cent., subject to immediate acceptance for one issue up to 5,000,000l, 5 per cent. first fifteen years, 4¼ per cent. last fifteen years, provided Chinese give satisfactory written assurance that proceeds will be applied to redemption Peking-Hankow Railway bonds. Interest to be payable on full amount of loan from date of issue.
Other terms to our satisfaction.
[1940-1]
145