263077-
W. & S. Ltd.-16679-6000-10-07.
-1979-8000-4-08.
Communicated her addis 26. 2.0
HANKOW CANTON RAILWAY LOAN TWO "I ATIONS.
MEMORANDUM BY HR. C. S. ADDIS.
311
The present position is as follows:-
1.
By an exchange of notes the Governments of England and Prance have declared themselves opposed to their nationals making ridlway loans to China unless accompanied by sul table guarantees that the money will be devoted to the object for which the loan was ostensibly raised.
2.
The Germans, having been refused participation in the Angle French Group, are now competing with them for the Hunkow- Canton Railway Loan by an independent offer to the Chinese of Tient sin-Pukow terms in which the control of the railway
funds is vested in the Chinese Director General.
3.
4.
The Anglo-French Group are accordingly faced with the alternative of either coming to terms with China by accepting Tientsin-Pukow (non control) terms or, of coming to terms with the Germans by admitting them to participatio
The German and French Groups having both expressed their willin ness to enter into a general Anglo-France-German understanding in China, the following arrangement is
mcrested:-
The Agreement between the H. & S. B. C. and the
Deutsch-Asiatische Bank to be taken as the basis for an
reement between the British & Chinese Corporation, the
Banque de l'Indo Chine and the Deutsch-Asiatische Bank for all railway loan business which any of the three groups may