695
C.O 21011
[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[20787]
No. 1.
AGE 24 JUN 09,
[June 3.
SECTION 2.
Sir,
Mr. Whitelaw Reid to Sir Edward Grey.--(Received June 3.)
American Embassy, London, June 3, 1909. IT may be remembered that in 1904 my Government was informed, through our legation in Peking, of a promise which the Chinese Government had made in writing to the British and American Ministers at that capital, that in case China was unable herself to raise the necessary capital for the construction of a proposed Hankow-- Chung-king Railway, American and British capital would be given the first chance over other foreign competitors.
On two occasions, the 25th July, 1905, and September of the same year, His Majesty's Ambassador in Washington enquired of the Secretary of State whether it was the desire of American capitalists to participate in this enterprise, to which the answer was given that, the matter had been made public, but as yet the American financial groups had not intimated their intention with regard to the undertaking.
The department of State, however, does not construe these replies to His Majesty's Ambassador as indicating a relinquishment on the part of American capital of the right to participate in the undertaking.
A report has now reached my Government that British, French, and German groups of capitalists have now under consideration an agreement with China to provide a loan for the construction of certain railwaya in China, among them being the Hankow- Szechuen line, and the Secretary of State is at the same time made aware that American capital is interested in this western line to such an extent that it would be glad to co-operate with the British interests in accordance with the understanding of 1904.
I am therefore instructed, in bringing these matters to your attention, to ask for an expression of your views for the information of my Government.
I have, &c.
WHITELAW REID.
[2317 c-2]