[This Document is the Property of His Britannic Majesty's Government.j
CHINA RAILWAYS.
CONFIDENTIAL.
325
C.O. 16123
[April 14.]
SECTION 1,
$13 MAY OC No. 1.
}
[14039]
The Chinese Minister to Sir Edward Grey.-(Received April 14.)
THE Chinese Minister presents his compliments to the Secretary of State for Foreign Affairs, and begs to inclose translation of a telegram he bas received from the Wai-wu Pu in reply to a telegram he sent on the subject of the interview with his Excellency on the 6th instant, confirmed by the Memorandum he had the honour to receive on the 9th.
Chinese Legation, April 14, 1909.
Inclosure in No. 1.
(Translation.)
(Telegraphic.)
Wai-wu Pu to Chinese Minister.
April 10, 1909,
YOUR telegram of the 9th instant received.
A communication has also been recently received from the British Minister on this question.
Having notified his Excellency Chang Chih-tung, this Department has received a reply from him, which reads as follows :--
"The reason that we first went to the British and Chinese Corporation for the negotiation of the Canton-Hankow Railway Loan was because we were desirous to do something in return for the friendliness shown to China by the British Government. Although the British and Chinese Corporation procrastinated for more than half a year we endeavoured by all possible means to carry on the negotiation.
"The Corporation was finally unwilling to come to any arrangement in accordance with the understandings contained in the communications passed (between his Excellency Chang Chih-tung and Mr. Fraser) in the 8th Moon of the 31st year of Kwang Hsu (September 1905) and twice notified its withdrawal, stating definitely that the Corporation had decided not to have anything to do with the Canton-Hankow and Szechuan-Hankow Railway loans, and that China could open negotiations with other countries on the matter. The tone of the language used by the Corporation was firm and decisive. Under these circumstances we turned to the German Bank and concluded an Agreement with it. We have therefore done nothing whatever in violation of the above-mentioned understandings nor have we shown any slight to England in regard to this question.
"The reason of our turning to and concluding an Agreement with the German Bank was because the British Corporation would not negotiate with us, and not because we would not negotiate with them.
"The German Loan Agreement has been signed by both parties and it is absolutely impossible to cancel it without a good reason.
"As regards the Szechuan-Hankow Railway Loan the British Corporation declared that they had decided not to have anything to do with it. Had it not been for our specially great desire to uphold the friendship of England we would have been justified in not continuing negotiations with the Corporation. Although we have been in treaty with other countries in regard to this matter we have not yet come to any settlement. If there are any other banks in England which are prepared to negotiate with us on the basis of the understandings arrived at in the 8th Moon of the 31st year of Kwang Hsü (September 1905) and to carry through the negotiations with all possible dispatch, we are willing to discuss with them, but if they should desire to get more than what is contemplated in the understandings we should be quiet unable to entertain their proposals."
Besides replying to the British Minister in the above sense this Department requests you to communicate with the Foreign Office.
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