M
C.O. 1.17226
[This Document is the Property of His Britannic Majesty's Government
CHINA RAILWAYS.
CONFIDENTIAL.
[April 29.]
SECTION 1.
İREG 21 MAY 09
381
[16338]
No. 1.
Telegram dispatched to Hong Kong and Shanghae Banking Corporation, Peking, April 29, 1909.--(Communicated by Mr. Addis, April 29, 1909.)
REFERRING to your telegram of the 27th, first part, unless Memorandum provides for some foreign control of or veto on expenditure of loan funds, Chinese proposal is no real improvement upon Tien-tsin Pukow terms and we cannot accept.
With regard to second part, unless practice in force northern section Tien-tsin- Pukow Railway to which you refer, but of which we are not cognizant, in some way or other stultifies the undertaking to be given, as, for example, by permitting of auditor's statement being given after instead of before requisition is paid, counsel's opinion is modification makes no difference bank's power to withhold payment.
In any case, is prosent practice northern section Tien-tsin-Pukow Railway sufficiently defined and agreed to form satisfactory basis for future Loan Agreements?
In answer to our further inquiry, counsel advises, with the above reservation, that auditor will be entitled to be satisfied and withhold statement as mentioned in our telegram of the 21st April.
13
Re your telegram of the 27th, suggest insert "and" before "in accordance with.' Subject to these reservations, your modified proposal appears to afford requisite security, and we approve.
Foreign Office approve.
Banque de l'Indo-Chine approve.
Inform Casenave.
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