[This Document is the Property of His Britannic Majesty's Government.
f.O. 94967
4
ment, and made a reference to the right of the managing director to avail himself of the services of agents other than the British and Chinese Corporation, which was quite irrelevant and evidently intended to confuse the issue. I enclose, for the information of your Highness, copies of the bureau's circular and of his Excellency Liang Shih-yi's reply of the 7th May to Mr. Bland, and take this opportunity of remarking that while responsible officers of the Board of Communications are found to treat the just represen- tations of British merchants in this evasive and unsatisfactory manner, it is not surprising that there are SO many breaches of British railway agreements to complain of.
The circular of the Kiangsu bureau is another open breach of the Shanghae- Hangchow-Ningpo Railway loan agreement, and I have the honour to request that telegraphic instructions may be sent by the Imperial Chinese Government to the bureau to withdraw it without delay. I have also the honour to remind your Highness that I have not yet received any reply to my communications of the 2nd and 29th March and the 20th April, dealing with other infractions of this loan agreement, and to suggest once more that the cornmands of His Imperial Highness the Prince Regent may be taken in regard to the serious situation on the Shanghae-Hangchow-Ningpo Railway, which has now continued for over a year.
The favour of an early reply is requested.
I avail, &c.
J. N. JORDAN.
[B]
CHINA RAILWAYS.
CONFIDENTIAL.
[25600]
No. 1.
Mr. Bryce to Sir Edward Grey.-(Received July 7.)
**
RECR
REG 26, JUL 09
[July 7.}
SECTION 1.
(No. 158.) Sir,
North-East Harbour, Maine, June 28, 1909. I HAVE the honour to enclose herewith a copy of a letter which I addressed to the United States Secretary of State upon the 22nd June, written in pursuance of your telegram received here upon that day. I have also the honour to enclose a copy of a letter from the Secretary of State, dated the 23rd June, written in reply to mine of the 14th June and to the representations which had been subsequently made orally upon the Hankow-Szechuan Railway Loan.
I also enclose the only other communication which I have received from the State Department, viz., a telegram from the Assistant Secretary of State received here upon the 25th June.
Lastly, I enclose a copy of a letter which I addressed to the Secretary of State upon the 24th, but which apparently had not been received by the State Department when the telegram of the 25th was sent.
The Counsellor of the Embassy has subsequently seen the Assistant Secretary of State, who, in the absence of the Secretary of State, who has been frequently absent from Washington during the last fortnight, said he was not able to add anything to his telegram. I have, however, directed Mr. Innes to renew the discussion with the State Department, and endeavour to obtain a somewhat fuller statement of their view of the position.
It may be conjectured from the language held by the Secretary of State that there has probably been some misunderstanding of the attitude of His Majesty's Government. Whether the Ambassador in London misunderstood what was said to him at the Foreign Office, or whether the United States Government misunderstood what their Ambassador endeavoured to convey to them, it would appear that the position of His Majesty's Government was not at first fully comprehended in Washington. Such misapprehension, however, has, I think, now been removed.
The discussion in the press upon the subject has now almost come to an end, and it seems to be generally understood that the American group is going to have the participation it desired. The subject has excited rather less interest than perhaps might have been expected from the way in which one or two newspapers endeavoured to herald this bold departure of American policy in finance.
I have, &c.
JAMES BRYCE.
Inclosure 1 in No. 1.
Mr. Bryce to Mr. Knox.
North-East Harbour, Maine, June 22, 1909. Dear Mr. Secretary,
I HAVE just received from His Majesty's Government a despatch, which I hasten to communicate to you. They wish your Government to understand that they should very gladly recognise American co-operation in the matter of the Hankow-Szechuan loan, if the agreement which has been already concluded in China and now awaits only the requisite Imperial sanction be not endangered, and if the protest lodged by your Government on the subject is waived and arrangements of a satisfactory nature are made between United States financial houses and the European financial groups that are concerned. The British group, however, state that no person entitled to represent
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