723
C.O.
[This Document is the Property of His Britannic Majesty's Government287
CHINA RAILWAYS,
C
CONFIDENTIAL.
[3059]
No. 1.
RECR
REG APR OC
[January 27.]
SECTION 4.
Foreign Office to Colonial Office.
Sir,
Foreign Office, January 27, 1909. WITH reference to the letter from this Department of the 23rd instant, I am directed by Secretary Sir Edward Grey to transmit to you herewith, to be laid before the Secretary of State for the Colonies, a paraphrase of a telegram which has been received from His Majesty's Minister at Peking, relative to the proposed loan for the Canton-Hankow Railway.
I am to inform you that the substance of this telegram has been communicated to Mr. Addis, of the Hong Kong and Shanghae Banking Corporation, who is now abroad engaged in negotiation with the interested French and German groups.
As regards British rights under the Agreement of the 9th September, 1905, with Chang-chih Tung, it must be borne in mind that these will fall to the ground in the event of a foreign group making a more favourable offer than the British bank, and thus obtaining the loan. In the circumstances, therefore, Sir E. Grey is inclined to think that the better plan would be for the British group first of all to come to an agreement with the French and German Syndicates with reference to the loan issue, which will prevent ruinous competition, and then to rely on the 1905 Agreement to safeguard British rights under the Agreement as to the provision of engineers and material.
(Signed)
I am, &c.
F. A. CAMPBELL.
* Sir J. Jordan, No. 33, Telegraphic.
[2104 dd-4]