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

CHINA RAILWAYS,

CONFIDENTIAL.

[15644]

C.0.

15433

[April 26.]

SECTION 2.

TEC

・CE6° 7 MAY OC

No. 1.

Sir J. Jordan to Sir Edward Grey. -(Received April 26.)

(No. 147.) Sir,

Peking, April 9, 1909. WITH reference to your telegram No. 60 of the 31st ultimo and to my telegram No. 74 of the 4th instant, I have the honour to inclose copy of my note to Prince Ching, in which the Chinese Government are reminded formally of their obligations regarding a foreign loan for a railway from Hankow to Szechuan, under the Arrangements made in 1903 and 1905, and are informed that His Majesty's Govern- ment expect a loyal observance of their engagements.

I have, &c. (Signed)

Your Highness,

Inclosure in No. 1.

Sir J. Jordan to Prince Ch'ing.

J. N. JORDAN.

Peking, April 4, 1909. I HAVE the honour to refer your Highness to the letter which my predecessor, Sir Ernest Satow, addressed to you on the 15th September, 1903, and to your Highness" reply of the 26th September of the same year recording an Arrangement made between your Highness and this Legation regarding various railway questions that were then under discussion.

The fifth paragraph of this Arrangement provided that if China desired to construct a line from Hankow to Szechuan, and Chinese capital was insufficient for the purpose, she would obtain the necessary foreign capital from Great Britain and the United States.

A further undertaking regarding the Hupei section of such a line was contained in the lotter which his Excellency Chang, then Viceroy of the Hukuang Provinces, addressed to Mr. Fraser, His Majesty's Consul-General at Hankow, on the 9th September, 1905.

Under instructions from His Majesty's Secretary of State, I have already, at an interview of the 1st instant, informed his Excellency Liang Tun-yen that His Majesty's Government expected the loyal observance of these engagements on the part of your Highness' Government, and I have now the honour to emphasize this statement and place it formally on record.

I avail, &c. (Signed

J. N. JORDAN.

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