C.O.
146 This Document is the Property of His Britannic Majesty's Governmen13950
CHINA RAILWAYS.
REC
[March 2024 APR 09.
CONFIDENTIAL.
[11041]
No. 1.
SECTION 3.
Mr. C. S. Addis to Foreign Office.--(Received March 22,)
Dear Mr. Alston,
Hong Kong and Shanghae Bank, 31, Lombard Street, London, March 22, 1909.
I INCLOSE a copy of the German reply, which I received this morning. Some of the provisions will require careful consideration, but prima facie there is nothing, so far as I see, to prevent a resumption of the negotiations at the point where they left off.
The letter will be considered by the English Delegates at a meeting to be held here this week.
Yours truly, (Signed)
C. S. ADDIS.
Dear Sir,
Inclosure in No. 1.
Deutsch-Asiatische Bank to Mr. C. S. Addis.
Berlin, March 20, 1909, IN confirmation of our yesterday's telegram, as per inclosed copy, we beg to inform you that our Syndicate has agreed to continue the negotiations re the proposed Anglo-French-German Agreement on the point where they have been suspended, and that Messrs. Urbig, Erich, and Rehders have been authorized to resume and conclude these negotiations on the following conditions:----
1. Two Agreements are to be made simultaneously, viz.:
**
(1.) The first Agreement has to be made between the Hong Kong and Shanghae Banking Corporation, the Deutsch-Asiatische Bank, and the Banque de l'Indo-Chine. It shall relate to all loans and advances which may be concluded with the Chinese Imperial or Provincial Governments or under the guarantee of such Governments, taking as basis the Agreement made by us with your esteemed Bank on the 27th July, 1895.
(2.) The second Agreement has to be made between the British and China Corporation (Limited), the Chinese Central Railways (Limited), the Deutsch-Chinesische Eisenbahn-Gesellschaft m.b.H., and a Railway Syndicate to be formed by the Banque de l'Indo-Chine. This second Agreement shall relate only to loans and advances for railway purposes.
2. The conclusion of Agreements, as described above, shall be subject to the following provisions :---
(a.) Spheres of interest not to be allowed, the railways in the Province of Shantung not to fall into the scope of the Agreement.
(b.) Chief Engineers to be appointed alternately by the three groups with the exception of the railway line Pukow-Sinyang, in which case the Chief Engineer shall be English, and the railway lines Techou-Chentingfu and Yenchoufu-Kaifeng, în which case the Chief Engineer shall be German.
(c) The position of the Peking representative of the German Syndicate in negotiations with Chinese authorities shall be in parity with the position of the representative of one or the other group.
(d.) An additional clause shall be inserted that all parties to both Agreements shall bind themselves not to be interested in any competing business within the scope of the Agreement without disclosure of such interest and the consent of the other parties thereto.
(e) As long as the first Agreement to be concluded remains in force the Agree- ment made on the 30th June, 1898, between the Hong Kong and Shanghae Banking
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