[This Document is the Property of His Britannic Majesty's Government.j
2
that it has taken note of the intention to co-operate in future with our group, that it must, however, leave all further arrangements in the hands of the banks interested. The conclusion of the present business must not be disturbed by an American interference, the alteration of the agreement in Peking being a dangerous proceeding.
I am of opinion that we should endeavour, as long as possible, to debar the Americans from entering the present business. We ought to make them no overtures for the future. If we cannot close the European markets for such foreign loans, the position of the Americans becomes that of an entirely useless ally.
Believe me, &c.
[B]
CHINA RAILWAYS.
CONFIDENTIAL.
[23469]
C.O. 23208
[June 22.]
$12 JU
SECTION 1.
No. 1.
F. URBIG.
Sir,
Inclosure 2 in No. 1.
Herr Urbig to Mr. Addis.
Berlin, June 21, 1909.
HAVE wired Ullmann as follows:--
C4
(Telegraphic.)
On me dit qu'Ambassadeur de France, Washington, n'a reçu aucune instruc- tion de son Gouvernement. Position de notre groupe international vis-à-vis demande américaine est donc devenue plus faible et nous approche à la nécessité de consentir proposition faite par nos représentants Pékin. Télégraphiez."
Telegraph your view.
Mr. Whitelaw Reid to Sir Edward Grey.--(Received June 22.)
American Embassy, London, June 21, 1909. WITH reference to my memorandum of the 12th instant and previous correspondence on the subject of the railway concessions in China, under instructions from my Govern- ment I have the honour to hand you herewith, for your information, the substance of a telegraphic instruction addressed to the American chargé d'affaires at Peking by the Secretary of State on the 16th instant.
I have, &c.
Inclosure in No. 1.
WHITELAW REID.
Substance of Telegram sent by United States Secretary of State to American Chargé d'Affaires at Peking respecting Railway Concessions in China, dated 16th June, 1909.
THE American group is willing to participate in this loan on the French bagis, namely, 20 per cent. of the total loan on terms identical with those of the French, having equal preference with British, French, and Germans in regard to all financial relations as well as to materials. Owing to the fact that the British, French, and German groups
have so nearly reached the completion of their negotiations prior to the formation of the American syndicate, the American group will not insist upon rights in regard to chief engineers and auditors. In signifying its readiness to participate in this loan as above on the general outline which you have already telegraphed, the Americau group does not consider itself bound by any provisions of the agreement not known to it, and which may impose obligations upon it of which it knows nothing. Moreover, it expects, in addition to participation on the basis named, equal rights to appoint its own representative to act with the banking representative of the other groups as provided in article 7 of the Tien-tsin-Pukow agreement, a copy of which agreement has been submitted to the members of the groups; but it does not feel competent to approve the terms of this agreement in their entirety, owing to lack of knowledge as to what portion thereof governs the present contract. It is assumed that, in adapting the terms of the Tien-tsin-Pukow agreement to meet the new conditions created by the introduction of American and French in addition to British and German interests in the present agreement, consideration will be shown to the special require- ment of the American market covering engraved bond, &c.
In informing your enquirer concerning this attitude of the American syndicate you will point out that, in taking this position, the American group is influenced by its desire to establish harmonious relations with the British, French, and German interests in order to secure cordial co-operation in future enterprises, and that its action in waiving what might be claimed to be its just right may not be regarded as creating a precedent as to the basis for future financial participation in foreign operations in the Chinese Empire.
In case the British, French, and German groups are ready to accept American participation on the basis outlined above, and on the conditions above stated, you are authorised to sign this agreement on behalf of the American syndicate, consisting of J. P. Morgan and Co., Kuhn, Loeb, and Co., the First National Bank of New York, and the National City Bank of New York.
[2317 -1]
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