2
now been reached, viz., the Hankow-Canton and Hankow-Chengtu Railways, they, the British group (including the Hong Kong and Shanghae Banking Corporation), could not rely upon the exclusive, although they confidently expected the general, support of the British Government in regard to the future business contemplated in the proposed general agreements.
For the Representatives of the German group,
FRANZ URBIG.
For the Representatives of the British group,
C. S. ADDIS.
For the Representatives of the French group,
S. SIMON.
593
C.C.
21011
This Document is the Property of His Britannic Majesty's Government)
Rece
G: 24 JUN 09,
CHINA RAILWAYS.
CONFIDENTIAL.
[20791]
No. 1.
Minute by Sir F. Campbell.
[June 1.]
SECTION 1.
Minutes of the Meeting at the Offices of the Deutsch-Asiatische Bank, Berlin, on May 13; read and approved at the Meeting on May 14, 1909.
M. Urbig,
M. Erich,
M. Rehders,
Present:
›representing the German group.
Mr. C. S. Addis, representing the British group.
M. Carl Meyer,
M. S. Simon,
M. Ullmann, f
representing the French group.
M. Urbig took the Chair.
It was decided to proceed with the discussion of the particular proposal cabled from Peking on the 7th May prior to proceeding with the discussion of a general arrangement.
The French group submitted that the Peking proposal did not preserve the principle of equality on which the whole of the negotiations had been based, in so far as a German preference in regard to materials was claimed in respect of the Hupeh section of the Hankow- Chengtu line, while the British and French groups would have to share the Hukuang section of the Hankow-Canton Railway between them.
A discussion then took place as to the length and termini of the respective sections, and it was decided to cable to China for this information.
The draft agreement prepared by the German group to be entered into with the Chinese Government was then laid before the meeting and read, considered and approved in principle, subject to slight modifications and to the demand of the French group that they should appear as parties to such agreement on equal terms with the German and British groups. It was also agreed that the security proposed was not entirely satisfactory and that efforts should be made to improve it
The question of the internationalisation of the loan was then raised, and while a general consensus in favour of such a course was expressed the British group pointed out that in principle they could not agree to share in the stamp duties of other countries, and the German group in these circumstances also declined to do so.
In reply to M. Urbig, both the British and French groups declared that neither directly nor indirectly had they given information of any kind to the press or other- wise after the meeting in Paris, and that they were as much surprised as the German group at the announcement that had appeared in the “' Times.'
Conton-Hankow, &c., Railway Loan.
MR. ADDIS called to say that at the last moment a serious difficulty had arisen. They had come to a complete agreement with the French and the Germans, and all were ready to sign the loan agreement with the Chinese, but Chang Chih Tung was now insisting that the British and Chinese Corporation were not to appear in the business, and were not to have the agency for the purchase of material in this country. The bank had offered to recall Mr. Bland, thinking it was personal to him, and that Mr. Hillier alone should sign, but this had not satisfied Chang, who appears to insist upon the British and Chinese Corporation not having anything to do with the matter. Mr. Addis pointed out that this would apply to all Chinese business, and that it would mean having to form another group and in the British and Chinese Corporation having to close their doors and dissolve, and that the effect of this would be deplorable.
Whatever complaints the Chinese may have against the corporation on the score of extravagance in railways, like the Shanghae-Nanking, which they have built, there has been no suspicion as to their integrity, and they would have no scope for extrava- gance as regards a railway constructed by the Chinese, in which they only take a 5 per eent. (?) commission on materials ordered through them.
I think we should telegraph to Sir J. Jordan to do his best to get this decision reversed. The matter is pressing, as the French and Germans are pressing the bank to send out instructions to sign.
Foreign Office, June 1, 1909.
Telegrams communicated by Mr. C. S. Addis, June 2, 1909.
(1.)
Telegram received from Peking, June 2, 1909.
F. A. C.
REFERRING to your telegram of 1st to head office, Chang Chib Tung absolutely refuses to accept name of British and Chinese Corporation (Limited); but if British and Chinese Corporation (Limited) can change name, or form new company with predominant interest under new name, we think we can obtain insertion in article 18. If foregoing arrangement implies delay, we strongly recommend autho- rising us word clause in terms of our telegram of 30th May to head office. In any case matters are most urgent, as delay is causing Chinese to reconsider other terms of agreement. It is very important to decide promptly, in order that we may initial âual agreement, if possible, to-morrow.
(2.)
Telegram received from Hong Kong, June 1, 1909.
PEKING wires --
What is your
"Advise London by wire Chang Chih Tung still insists upon name of Hong Kong and Shanghae Banking Corporation must be inserted clause 18. opinion as to word as follows for respective railway :-
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