This Document is the Property of His Britannic Majesty's Government.
CHINA RAILWAYS.
CONFIDENTIAL.
[15169]
C.0. 16123
[April 22.]
328
SECTION 1.
No. 1.
2013 MAY OC
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i
Mr. C. S. Addis to Foreign Office-(Received April 22.)
Dear Sir Francis,
Hong Kong and Shanghae Banking Corporation,
31, Lombard Street, London, April 21, 1909.
AS requested in your letter of the 19th instant, re Hankow-Canton Railway, I have the pleasure to inclose counsel's opinion upon the point raised in Mr Hillier's telegram of the 16th instant.
As the French appear to be in accord with us, that so long as the control of expenditure can be made effective, the channel through which it is obtained is immaterial, I have telegraphed Mr. Hillier to-night, as per inclosed, that his proposal appears to us to afford the security required and that accordingly we approve of it.
I also inclose copy of a letter addressed by Herr Schoeller, the Head of the German group, to M. Ullmann, the Sons-Directeur of the Comptoir d'Escompte de Paris and a prominent Director of the French group. The German letter does not advance any new arguments for the defence, but it is of value as indicating the uneasiness with which they regard their severance from the English and French groups.
M. Ullmann's reply seems to be quite admirable, and I do not think we have any reason to regret the firm and consistent attitude which we have induced the French to adopt upon this occasion.
Inclosure 1 in No. 1.
Yours, &c.
(Signed)
C. S. ADDIS.
Mr. C. S. Addis to Mr. Hillier.
(Telegraphic.)
April 21, 1909. ŘEPLYING to your telegram of the 16th April, counsel advises that, if proposed amendment added, bank could withhold payment in the event of auditor's statement not furnished. Consequential alteration in paragraph 3, Article 14, will be required.
In answer to our further inquiry, counsel advises that auditor before giving statement would be entitled to be satisfied as to bona fides of requisition. Also auditor could reasonably withhold statement until satisfied that Under these circumstances any previous misapplication of funds had been rectified. your proposal appears to us to afford required security and we approve.
Inclosure 2 in No. 1.
(Traduction.) Cher M. Ullmann,
Herr Schoeller and Dr. Salomonsohn to M, Ullmann.
Direction der Disconto-Gesellschaft, Berlin, le 13 avril, 1909,
LES conversations que vous avez eues avec MM. Urbig et Erich, lors des conférences de Londres et de Berlin, nous font désirer mettre en lumière, d'une manière approfondie, les divergences d'opinions qui se sont produites à cette occasion. Nous nous y sentons amenés en considération des rapports si agréables existant depuis de longues années entre nous et avec l'établissement que vous dirigez, rapports que nous ne voudrions
des malentendus. voir troublés pas
par Il y a deux points essentiels qui demandent à être expliqués
*
1. Vous avez considéré que la décision prise par le Consortium pour les affaires asiatiques, en ce qui concerne la situation à prendre pour les affaires chinoises, constitue un désaven de l'engagement résultant du Mémorandum Addis du 26 février et de notre . adhésion du 1er mars.
A ce propos, nous faisons observer ce qui suit : ----
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