[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[18643]
No. 1.
475
[May 17.]
SECTION 2.
Sir,
Mr. C. S. Addis to Sir Edward Grey.-(Received May 17.)
Hong Kong and Shanghae Banking Corporation,
31, Lombard Street, London, May 17, 1909.
HANKOW-CANTON and Hankow--Szechuan Railways,
I have the honour to report that a Conference was held at Berlin on the 13th, 14th, and 15th instant, between representatives of the British, German, and French groups when a settlement of their differences was arrived at on the following basis (copy of Memorandum of Agreement is inclosed herewith):
1. Appointment of British Engineer-in-chief for the whole of the Hankow-Canton line.
2. Limitation of the German Engineer to the Hupci section of the Hankow- Szechuan line with its western terminus at Ichang.
3. Appointment of a British Engineer for the third or concluding section of the Hankow-Szechuan line with its terminus at Chêngtu, and of a French Engineer for the second or middle section of the same line,
4. Equal participation among the three groups for the supply of material throughout the two lines; the withdrawal of the German claim to supply the whole of the material for the Hupei section of the Hankow-Szechuan line.
5. Effective guarantees from the Chinese for the proper employment of railway loan funds,
6. A general Agreement has been drafted and it is expected will shortly be signed with a view to joint action by the three groups in respect of any future loans for railways in China.
I venture to hope that the settlement of this long-drawn-out international dispute on terms so favourable to British interests may be considered satisfactory by His Majesty's Government.
Inclosure in No. 1.
Yours truly, (Signed)
C. S. ADDIS.
Memorandum of Terms of Agreement come lo at a Meeting at the Offices of the Deutsch- Asiatische Bank, Berlin, May 14, 1909.
Parties: the British and Chinese Corporation (Limited), Chinese Central Railways (Limited), representing the British group; the Deutsch-Asiatische Bank, repre- senting the German group; the Banque de l'Indo-Chine, representing the French group.
THE Addis Memorandum of the 26th February, 1909, is accepted as the basis of the present arrangement in respect of the Hankow-Canton Railway and Hankow- Chêngtu Railway.
2. The British-German-French groups agree to enter into au Agreement with the Chinese Government for a loan for 5,500,0001, and any supplementary loans to be issued in connection therewith for the above railways on the basis of the draft Agree- ment approved by the parties.
3. This loan to be divided equally between the three groups and to be issued simultaneously.
4. All orders for materials to be divided as far as possible equally between the three groups.
5. In regard to the appointment of Chief Engineers, the Chief Engineer for the Hankow-Canton Railway to be appointed by the British and Chinese Corporation (Limited), the Chief Engineer for the Ichang-Hsiangyang-Kuangchui line and the
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