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C.O.

[This Document is the Property of His Britannic Majesty's Government.17899

CHINA RAILWAYS,

CONFIDENTIAL.

[17359]

No. 1.

Telegrams communicated by Mr. Addis, May 7, 1909.

(1.)

[May 7.]

SECTION 1.

Rece

REGP 27 MAY 09)

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Telegram received from Peking, May 7, 1909.

M. CASENAVE CORDES, E. G. Hillier, have, with concurrence of Chinese, come to the following provisional arrangement subject to ratification by English- French-German group :-

Loan to be issued in one amount of 5,500,000!., providing 2,500,0001, for construction Hupeh-Yang-tsze Province section Hankow-Szechuan Railway, with German engineer and preference for German materials; 2,500,0001. Hukuang section Canton-Hankow Railway, with British engineer and preference for British and French materials; 500,0001, redemption Belgian bonds. The loan to be issued in equal shares between the three banks.

M. Casenave Cordes, E. G. Hillier, hope that representatives of English, French, and German group will see their way to meet immediately for the purpose of ratifying above arrangement, so as to permit drafting of final Loan Agreement to be proceeded with.

(2.)

Telegram received from Peking, May 7, 1909.

WE have since received your telegram of 6th May.

British Minister Plenipotentiary's opinion is, in order to protect Szechuan- Yang-tsze Province extension, conclusion of Paris Agreement should be essential condition of present arrangement, but under the circumstances our views agree with yours. At the same time, we suggest try to make foregoing personal appeal from Peking representatives occasion for bringing British-French-German group again into friendly relations with a view to secure future understanding.

(3.)

Draft Telegram to the French and German Groups, May 7, 1909.

FOLLOWING telegram from Peking :-

[See telegram No. (1).]

Re foregoing, suggest meeting of delegates at Paris on Monday next, at 10 A.M,

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