.0
£7198
[This Document is the Property of His Britannic Majesty's Government.]
RECE
R14 AUG 09,
CHINA RAILWAYS.
CONFIDENTIAL.
[28230]
No. 1.
262
[July 26.]
SECTION 1.
Mr. C. S. Addis to Foreign Office.-Received July 26.)
Hong Kong and Shanghae Banking Corporation,
31, Lombard Street, London, July 24, 1909. Dear Mr. Langley,
SIR FRANCIS CAMPBELL informed me last night that he was going away on a holiday, and that you would act for him during his absence. I accordingly address myself to you.
In his letter of the 23rd instant, Sir Francis writes that the Secretary of State is of opinion that there is no longer any object in opposing the American demands for participation in the Hukuang railways loan.
The British delegates are quite prepared to adopt the course approved by His Majesty's Government, and to urge its acceptance upon their French and German colleagues. I have accordingly written to the representatives of the groups in Paris and Berlin pointing out that the Chinese appear to have yielded without reserve to the personal appeal of the President of the United States, and that our representatives in Peking are agreed that there is now no hope of arriving at a compromise with the American group.
Under these circumstances, I have asked the French and German delegates to consider whether it is desirable to continue a futile resistance, which can only result in the loan being hung up indefinitely, in increasing American pretensions, and in provoking the claims of Russia and Japan; or whether, on the other hand, the time has not come to accept frankly the American demand to be put upon an equal footing in every respect with the other three groups, as regards the Hukuang loan of 6,000,0001.
I have pointed out further that, if the continental groups will agree to adopt the second of these alternatives and admit the Americaus to participation, in principle, on equal terms, then, I think, the Americans might reasonably be asked, on their part, to agree not to disturb the existing relations between the groups as regards the appoint- ment of engineers. This would not conflict with the principle of equal participation, since the Americans would not be in any way abandoning their claim to the appointment of an engineer, but merely postponing it, in consideration of arrangements already come to between the three groups, by which a British engineer is secured for the whole of the Flankow-Canton line, and German, French, and British engineers, in the order named, for the three sections of about 800 kilom, each on the Hankow-Chengtu line.
Yours truly,
C. S. ADDIS.
[2336 cc-1]