758
C.O.
34965
[This Document is the Property of His Britannic Majesty's Government.
¡RECE
(REG: 25 OCT 09
CHINA RAILWAYS.
CONFIDENTIAL.
[37361]
No. 1.
[October 9.]
SECTION 2.
Mr. Rumbold to Sir Edward Grey,—(Received October 9.)
(No. 260. Very Confidential.) Sir,
Tokyo, September 6, 1909. WITH reference to correspondence which has passed with Peking about the Hankow-Canton Railway, I have the honour to forward herewith a memorandum of conversations between the commercial attaché and Mr. Kadono, of the firm of Okura and Co., who is one of the committee of the Oriental Exploitation Syndicate, and Mr. Kurachi, chief of the Political Bureau in the Foreign Office. From these conversations it would appear that a verbal understanding has been come to between Lord ffrench and the representative of Messrs. Mitsui and Co., acting for the syndicate, whereby Messrs. Paulings and the Japanese Oriental Exploitation Syndicate each share in any concession obtained by the other party, and both parties are to assist each other as far as possible. This understanding would seem to relate only to construc- tion work for the Hankow-Canton Railway.
This Japanese Syndicate was referred to in my despatch No. 201 of the 10th July last, and since then there have been some difficulties in obtaining the support of all the influential families and in forming the Syndicate so as to make it conform to Japanese law. These difficulties have apparently all been overcome, and the Syndicate would seem now to be a powerful organisation. Nevertheless it is not easy to understand why Messrs. Paulings should be willing to come to an understanding with this syndicate under circumstances which, if they were disclosed by any chance to the Chinese Government, would result in an immediate forfeiture of the good opinion of the Chinese. The firm appear, in fact, to be combining with the Americans to oppose Japan in one part of China, whilst combining with Japan in another part.
It is of course possible that the Japanese may consider that an understanding has been arrived at, whereas Messrs. Paulings may perhaps have got no farther than listening to Japanese arguments, but in the absence of any representative of Messrs. Paulings in Japan I am unable to learn their side of the question.
I have, &c.
HORACE RUMBOLD.
Inclosure in No. 1.
Memorandum of Conversation between Commercial Attaché and Mr. Kadono.
(Very Confidential.)
ON the 2nd instant I had a conversation with Mr. Kadono, of the firm of Okura and Co., who is one of the committee of the Oriental Exploitation (Development) Syndicate, relating to the work of this syndicate in China. I asked him whether any arrangement had been come to between Paulings and the Japanese syndicate as had been reported in the press some time ago. Mr. Kadono said that there was not any actual hard and fast signed agreement, but that Mr. Odagiri (of the Specie Bank) has made an arrangement with Paulings relating to the Hankow-Canton Railway, whereby either party was to share in any concession obtained by the other party, and both parties were to assist each other as far as possible.
Mr. Kadono then went on to say that the syndicate was a financial one, and that it would not supply articles such as sleepers and cement itself, but would sublet any contracts it could obtain to Japanese firms such as Okura and Co., Mitsui and Co., &c. He also told me that influence had been brought to bear on the Iwasaki (Mitsubishi) and Sumitomo interests, and that these powerful and wealthy families had now joined the syndicate, so that there was not a really rich man left in Japan who had not now got a share.
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