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418
This Document is the Property of His Britannic Majesty's Government, p
C.O.
17899
CHINA RAILWAYS.
CONFIDENTIAL.
[16168]
No. 1.
Papers communicated by Mr. Addis, April 28, 1909.
(1)
Telegram to Peking.
REGP27 MAY 09;
[April 28.]
SECTION 2.
April 28, 1909. REFERRING to your telegram of the 27th, first part, unless Memorandum provides for control of funds, Chinese proposal is no real improvement upon Tien-tsin- Pukow terms, and we cannot accept.
With regard to second part, unless Tien-tsin-Pukow procedure in some way or other stultifies the undertaking to be given, counsel's opinion is modification preserves bank's power withhold payment.
In answer to our further inquiry, counsel advises, with same reservation, that auditor will be entitled to be satisfied and withhold statement, as mentioned in our telegram of the 21st instant.
Under these circumstances your modified proposal appears to afford requisite security, and we approve.
K
(2.)
Counsel's Opinion.
11
I am of opinion that it makes no difference whether the requisition is to be 'accompanied by the auditor's statement or whether the provision is that the auditor's statement is to be handed in at the same time. In either event, I am of opinion that the bank would be entitled to refuse to honour the requisition if such statement were not forthcoming. I have no information as to the present practice on the northern section of the Tien-tsin-Pukow Railway, but unless that practice is such as to make the auditor's statement a mere matter of form, I am of opinion that, even without express provision for his being furnished with copies of indents and vouchers, he will be entitled to refuse to furnish a statement where he had not the materials for ascertaining whether that statement was accurate or not..
(Signed) F. WHINNEY.
Lincoln's Inn, April 28, 1909.
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