py.
(
HANKOW CANTON RAILWAY LOAN NEGOTIATIÆ
660)
540
C.O.
7925
Memorandum by Mr. C. 8. Addis.
Acce Ree? 5 MAR 09)
The present position is as follows:-
1.
By an exchange of notes the Governments of
England and France have declared themselves opposed
to their nationals making railway loans to China un-
less accompanied by suitable guarantees that the money
will be devoted to the object for which the loan was
ostensibly raised.
2. The Germans, having been refused participa-
tion in the Anglo-French Group, are now competing with
them for the Hankow-Canton Railway Loan by an inde-
pendent offer to the Chinese of Tientsin-Pukow
terms in which the control of the railway funds is
vested in the Chinese Director General.
3. 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 teras with the Germans by admitting
them to participation.
4. The German and French Groups having both ex-
pressed