This Document is the Property of His Britannic Majesty's Government.]

CHINA RAILWAYS.

CONFIDENTIAL.

[27999]

(No. 124.)

(Telegraphic.) P.

RAILWAY loan negotiations.

No. 1.

Sir J. Jordan to Sir Edward Grey.--(Received July 25.)

¡

REC

[Fuly 25.] [(

SECTION 1,

Peking, July 25, 1909.

your

I fully concur in the proposed reply to the Russian Ambassador, as stated in telegram No. 122 of yesterday's date.

It appears to me that the protest against the formation of an international financial syndicate is directed towards strengthening Russian prestige vis-à-vis the Chinese, and is probably intended as a set-off against what the Russians themselves must realise to be their absurd demand for a share in the present loan, Russia, it would seer, hoping to profit by the resentment aroused in the Chinese by a foreign combine in which, although formed to support undertakings in China, the Chinese Government have no share.

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