[This Document is the Property of His Britannic Majesty's Government.j
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unjustly treated in not being afforded active support in underbidding the Germans and ousting them from the position they have secured in the Canton-Hankow line.
Although there appears little probability of amalgamating into one combine all these diverse British elements, there is, in my opinion, great room for increased efficiency on the part of the British and Chinese Corporation and for fuller co-operation between it and the Hong Kong and Shanghae Bank. Instead of attempting to direct affairs from Peking, the agent of the corporation will probably find it necessary in future to pay some personal attention to the construction of railways on the spot and to rely on his own powers of organisation rather than upon protests to secure the successful working of the railway agreements.
The Hong Kong and Shanghae Banking Corporation, on the other hand, should clearly define its position with regard to the corporation and not expose itself to the charge of inconsistency in acting in the matter of loans sometimes through the corpora- tion, and at other times in its own name, as its interests may happen to dictate.
I have, &c.
J. N. JORDAN.
CHINA RAILWAYS.
CONFIDENTIAL.
[25918
No. 1.
Sir Edward Grey to Mr. Bryce.*
196
[July 12.]
SECTION 2.
(No. 183.)
Foreign Office, July 12, 1909. Your Excellency,
WITH reference to previous correspondence on the subject of the Hukuan loan, I have to inform your Excellency that at a meeting held at London on the 7th instant, between the British, French, and German groups and the representatives of certain American banking houses, the latter agreed to accept 25 per cent. of the Szechuan (Hankow-Chengtu) loan, with all the same privileges, including the nomination of au auditor and accountant, as the European groups. In view, however, of the American claim to 50 per cent. of the Szechuan line, they regarded this as a concession, and therefore asked for 25 per cent. also of the 2,500,0001, for the Hupeh section of the Canton-Hankow line.
In this last demand the British, French, and German groups replied that they were unable to agree, and must consult their Governments. It was finally arranged that the Americans should telegraph to their Government for authority to withdraw the claim, and it was understood that they themselves would support the application.
At a further meeting held on the 8th instant, the Americans announced that they had been informed that their principals were not prepared to give way on this point. It was stated that a faint hope of reaching a compromise lay in the fact that Mr. P. Knox, the United States Secretary of State, was absent from Washington, and that on his return it was possible that their instructioms might be modified. was not, however, considered probable, and after some discussion the meeting was adjourned sine die, without the negotiations being actually broken off.
I am, &c.
This
E. GREY.
* Also to Sir E. Goschen, No. 178; Sir F. Bertie, No. 299; and Sir J. Jordan, No. 201. (2336 m--2
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