[This Document is the Property of His Britannic Majesty's Government.
CHINA RAILWAYS.
CONFIDENTIAL.
36392
IREC
23
[August 275 NOVOS
SECTION 3.
[32326]
(No. 141.)
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received August 27.)
(Telegraphic.) P.
RAILWAY negotiations.
Peking, August 27, 1909.
Please see the telegram sent to London to-day by Mr. Tillier, and the telegram of the 25th instant from Mr. Addis, to Peking.
Mr. Hillier considers that the arguments advanced in the latter of the above telegrams do not preclude him from signing the agreement according to his original instructions, but I have communicated to him my view that the terms of your telegram No. 137 of the 24th instant, prohibit his taking that course.
As regards, however, the suggestion made in your telegram No. 137, I am bound to say that, in my opinion, such a division of the line would not be possible without breaking the loan agreement as initialled. It would further be difficult to carry the proposed arrangement into effect, owing to the fact that the extension from Ichang to Chengtu has not hitherto come within the scope of the negotiations with Chang.
The French having now withdrawn their objection, I venture to ask whether you still attach importance to an immediate as opposed to a future settlement of the question of the extension to Chengtu.
[32354]
No. 2.
(No. 142.)
Sir J. Jordan to Sir Edward Grey.—(Received August 27.)
(Telegraphic.) P.
CHINCHOW-TAONANFU Railway.
Peking, August 27, 1909.
I had an interview to-day with my Japanese colleague, and I spoke to him in the sense of your telegram No. 132 of the 20th instant.
He told me that he had received no reply from the Wai-wu Pu to his recent suggestion that they should obtain the advice of the Japanese before making definite plans for the construction of the railway. In his opinion the Chinese would be more inclined to view the matter in a friendly way after the settlement, which would not now be long delayed, of the Manchurian negotiations, and it would be advisable to suspend action on our part meanwhile, though he thought that I might perhaps endeavour to ascertain the views of the Chinese if a suitable opportunity were to present itself. I told him that I would do so.
I cannot help thinking that it will be no easy task to persuade the Chinese into taking the first step and meeting the Japanese half way, as I interpret the action of the Mukden Viceroy in conveying to the British, German, and American consular officers on the 19th August his desire that the proposed mining and railway developments in Manchuria should be financed with either British, or German, or American capital, as showing the anxiety of the Chinese authorities to put a check on Japanese activity in those regions.
(Secret.)
Lord ffrench tells me that at the same time as he was carrying through, on behalf of Paulings, the agreement for the survey and construction of the line, an arrangement was concluded, and is now in the hands of Mr. Straight, the representative of the American group, for the financing of the railway by American capital. In Lord ffrench's opinion, however, the existence of this agreement does not necessarily preclude the possibility of Japanese participation in the undertaking.
[2389 dd-3]