Copy.

(26867/09).

Urgent.

494

C.0. 19074

Pro

KEGY & JUN 09

Paraphrase of Telegram to Sir J. Jordan, from Sir E.

Grey, No. 106, dated June 4th, 1909.

Railway loan.

Please see your telegrams 100,.

101 and 102.

In the circumstances described we concur in the

agreements being signed at once. The elimination,

however, of the British and Chinese Corporation in

whose neme the agreements were concluded with the French

and German group, and with whom there is under nego-

tiation a general agreement for railway business in

China, has a very unfortunate appearance. At Berlin

and Paris where so recently assurances have been given

that the Corporation had in this case the exclusive

support of His Majesty's Government, it must bring

about a serious loss of prestige for the British group.

You should endeavour to keep Liang to his promise

described in your telegram 102 of the 4th instant.

We must do our best to prevent the elimination of the

Corporation from having the effects outh in China and

in

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