[This Document is the Property of His Britannic Majesty's Government.) O.

4

There does not appear to be any insurmountable difficulty why the Kowloon section should not be placed under the working management of the British General Manager at Canton under a satisfactory agreement which will safeguard the mutual interests of the contracting parties. It is hardly likely that the Chinese Government will agree to the British management of their line from the frontier to Canton, seeing that this section will eventually be linked in with the rest of the main line to Hankow, now under experimental construction, the completion of which may perhaps eventually become an Imperial project.

September 25, 1908.

(Signed)

W. BUTLER WRIGHT.

(C

CHINA RAILWAYS.

CONFIDENTIAL.

[3489]

No. 1.

722

TT287

RECR

[January 28.3

1 APR OS

SECTION 1.

Sir F. Bertie to Sir Edward Grey.-(Received January 26)

(No. 19.) (Telegraphic.) P.

Paris, January 26, 1909. I HAVE seen Mr. Addis and communicated to him the message in regard to the Hankow-Canton Railway Loan which was contained in your telegram No. 43 of the 24th instant. Mr. Addis has had two meetings with the French group, the results of which are as follows:-

1. The French group do not raise any objection to the proposed participation of a German group as far as finance is concerned.

2. They do not dispute the existence of British preferential rights as regards the supply of material and the appointment of engineers.

3. They do not press the demand that the Belgian group should participate in the British share of the loan.

Mr. Addis has also seen the Minister of Finance. M. Caillaux accepted points 2 and 3, but raised objections to point 1 in regard to the participation of a German group, and he will consult the Minister for Foreign Affairs and his other colleagues on that point.

Mr. Addis will not leave Paris till to-morrow, when he will go to Berlin.

[2104 cc-1]

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