6
FIRST SCHEDULE.
Direction der Disconto-Gesellschaft, Berlin.
S. Bleichröder,
Deutsche Bank
Berliner Handels-Gesellschaft,
Bank für Handel & Industrie,
Mendelssohn & Co.,
Dresdner Bank,
A. Schaaffhausen'scher Bankverein, Nationalbank für Deutschland,
Deutsch-Asiatische Bank,
Jacob S. H. Stern,
Sal. Oppenheim jr. & Cie,
27
17
27
3
Shanghai. Frankfurt a/M. Köln.
Norddeutsche Bank in Hamburg,
L. Behrens & Söhne,
Hamburg.
Bayerische Hypotheken-und Wechselbank, München.
SECOND SCHEDULE.
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C.O.
637
9600
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HANKOW-CANTON RAILWAY LOAN NEGOTIATIONS.
Memorandum by Mr. C. S. ADDIS.
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 unless 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 participation in the Anglo- French Group, are now competing with them for the Hankow-Canton Railway Loan by an independent 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 alterna- tive 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 participation.
4. The German and French Groups having both expressed their willingness to enter into a general Anglo-Franco-German understanding in China, the following arrangement is suggested
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The Agreement between the Hongkong and Shanghai Banking Corporation and the Deutsch-Asiatische Bank to be taken as the basis for an Agreement between the British and 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 obtain in China. This Agreement to include the Hankow-Canton Railway.
5. To enable this to be done, the British Group agrees to waive the preference on material secured to them by the Anglo-Chinese Convention of 1905.
6. In return for participation the German Group agrees to with- draw their offer to the Chinese and to adhere along with the Anglo-French Group to Canton-Kowloon terms of control as a minimum.