[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS,
CONFIDENTIAL.
(15979]
334
C.O. 16123
[April 28.]
STION 1.
RECR
g° 13 MAY OF No. 1.
Dear Sir Francis,
Mr. C. Addis to Foreign Office.-(Received April 28.)
Hong Kong and Shanghae Banking Corporation,
31, Lombard Street, London, April 27, 1909
I INCLOSE copy of a telegram which I have just received from Peking. It is at first sight disappointing, but perhaps it will be better to reserve any comment until we are in possession of counsel's opinion, which I hope to obtain to-morrow morning.
The retirement of Kinder, and the announcement of his successor, is disquieting. The latter is an agreeable and, I believe, an honest man, but his appointment as Chief Engineer, after having been cut adrift from railway work of any kind for more than eighteen years, is a slight upon Cox and Foley which it is hard to believe can be unintentional.
Yours truly, (Signed)
Inclosure in No. 1.
Mr. Bland to Mr. Addis.
C. S. ADDIS.
(Telegraphic.)
Peking, April 27, 1909. REFERRING to your telegram of the 21st, Chinese Government refuse proposed amendment. They propose instead insert clause, stipulating generally for procedure in accordance with actual practice in force northern section of Tien-tsin-Pukow Railway, to be embodied in separate Memorandum referred to in Loan Agreement and com- municated by official despatch. Memorandum is now in course of preparation, but, as Chinese Government are not prepared to prolong present negotiations unless there is prospect of arriving at agreement, we are requested ascertain immediately if you can agree to proposal foregoing in principle, subject to terms of Memorandum. With reference to foregoing, in our opinion, although, according to information furnished to us by Deutsch-Asiatische Bank, present working effective, we are doubtful if satisfactory Memorandum will be obtained. As an alternative we suggest obtain counsel's opinion regarding following modification E. G. Hillier's proposal: instead of "accompanied by auditors," read "auditor at the same time handing banks," and at the end of clause add "in accordance with present practice northern section of Tien-tsin-Pukow Railway." Communicate this to Banque de l'Indo-Chine. Telegraph reply immediately.
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