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This Document is the Property of His Britannic Majesty's Government.]

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CHINA RAILWAYS.

CONFIDENTIAL.

[13501]

No. 1.

C.0.

15128

VEGO

MAY OS

[April 8.}

SECTION 3.

218

Telegrams communicated to Foreign Office by Mr. C. S. Addis, April 8.

(1.)

Hong Kong and Shanghae Bank to Mr. C. S. Addis.

(Corrected telegram.)

Peking, April 8, 1909. HANKOW-CANTON Railway Final Agreement not yet signed. British Minister's protest has placed Chinese Government difficult position. E. G. Hillier at private interview, 6th April, Wai-wu Pu President, strongly urged Chinese Government allow Engineer sign requisition as affording only prospects of friendly arrangements all parties. We think it made impression with reference to foregoing position extremely delicate, but our opinion is while Chinese Government Deutsch-Asiatische Bank probably not willing reopen negotiations with British and Chinese Corporation (Limited) they would be glad to come to arrangements with Hong Kong and Shanghae Banking Corporation, Banque de l'Indo-Chine. In the event of Chinese Government approaching us with proposals to modify German terms in order to admit all parties, do you authorize us to E. G. Hillier negotiate on behalf of Hong Kong and Shanghae Banking Corporation?

(2.)

Mr. C. S. Addis to Hong Kong and Shanghae Bank.

(Telegraphic.)

April 8, 1909. RE your wire of 8th April. After consulting Foreign Office and British and Chinese Corporation, you are authorized make best arrangements possible modify terms on basis of Addis Memorandum, 26th February. British Engineer sign requisition as a minimum.

British and Chinese Corporation naturally regret giving place in negotiations to Hong Kong and Shanghao Bank, but if you are satisfied Chinese will not agree sign contract with British and Chinese they feel they have no alternative to acquiesce. We have told them business will be for their account, and Hong Kong will use best endeavours secure for British and Chinese Corporation all industrial advantages possible during construction and afterwards.

[2241 h-3]

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