This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS,
CONFIDENTIAL.
[30502]
359
C.O 79354
[August 11.]
SECTION 1.
Go 2 SEP OS
No. 1.
(1.)
(A.) Memorandum on Peking Telegram of August 11, 1909.-(Communicated to Foreign Office by Mr. Addis, August 11, 1909.)
AMERICAN protest withdrawn, and ratification of edict allowed provided :
1. Loan increased to 6,000,0007.
2. Of which American share 1,500,0001., being one quarter of whole loan.
with corresponding :-
(a.) Equal banking advantages.
(6.) Equal preference American materials.
(c) Equal share commission.
(d.) Half participation future and supplementary loans, Hankow-Szechuan
Railway. (Hupeh section.)
Note.--No reference to appointment American Engineer.
(2.)
Telegram received from Peking, August 11, 1909.
Meeting with Wai-wu Pu and American chargé d'affaires has resulted in following proposal: clauses 1 and 2 of our telegram of 22nd July, are accepted in principle with the addition that American participation 1,500,000l. carries corresponding banking advantages, and American materials entitled to same preference as British, French, German in original loan agreement. Commission ou purchase of material to be shared equally with American. Provision of original agreement with respect to future and supplementary loan remain unaffected by present arrangement; except that American right to one-half participation in future and supplementary loan Hankow- Szechuan Railway, Hupeh section, is recognised with reference to foregoing Wai-wu Pu concurs (in), but equal American preference materials Hankow-Canton Railway will have to be submitted to Chang Chi Tung for approval after receipt of reply from Washington.
Telegraph to us, have we your authority to conclude on this basis with reference to security although increase service of loan shows deficiency eleven, twelve, thirteen years we strongly recommend, if possible do not raise the point, what is your opinion. Advise Deutsch-Asiatische Bank, Banque de l'Indo-Chine.
(3.)
Telegram received from Peking, July 22, 1909.
United States President has telegraphed personally Regent, who has instructed Wai-wu Pu to satisfy American wishes. As American chargé d'affaires suggested that arrangements might be possible by increasing amount of loan, we stated that we were prepared to recommend following, firstly, amount assigned to Hankow-Szechuan Railway to increase by 500,0001. increasing total loan to 6,000,000., secondly, in consideration of agreement being entered into between Anglo-French-German banks, American banks undertaking to give American banks a participation of 1,500,000l. with material equivalent half Hankow-Szechuan Railway portion. American Government to immediately withdraw protest, and allow ratification by Imperial edict and signature agreement 6,000,0007. by Anglo-French-German banks without
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