2
he having been certified by them, in article 6 of the loan agreement, as competent for the post of chief accountant.
[This Document is the Property of His Britannic Majesty's Governae10),
I have, &c.
HARRY H. FOX.
Inclosure 2 in No. 1.
Mr. Grove to Taotai Wei Han.
CHINA RAILWAYS,
CONFIDENTIAL.
25
36392
FREEP
Pro 5 MD Oy
[October 13.]
SECTION 1.
Dear Sir,
Canton, September 6, 1999. I HAVE to return herewith the letters enclosed with your favour dated the 3rd September, 1909. Mr. Butler Wright's departure was very sudden-in fact, it amounted to his absconding from his duties and from his residence.
me,
I was unaware until Wednesday morning of any rumour to the effect that a departure to Japan on his part was intended, and this rumour, you will remember, I mentioned to you at the time. On Thursday morning, a further rumour reaching 1 at once asked Mr. Butler Wright what his intentions were, and upon learning that he intended asking your Excellency for leave on account of his health, I told him that he must wait until he had your permission to go, and that it would be necessary for him to make over all papers, bank books and accounts in a proper manner to Mr. Power, assistant accountant. His reply was that he would do so, and that he hoped to leave Shameen on Friday evening.
He actually left unexpectedly on Thursday evening, and simply announced to yourself and myself that he had gone away for about three weeks' holiday on medical advice.
On Friday morning Mr. Power, assistant accountant, found a letter from Mr. Butler Wright in which was the key of the chief accountant's safe, and the request was made that his (Mr. Butler Wright's) duties might be taken over by Mr. Power.
Upon examination of certain papers it was discovered by Mr. Power and communicated by him to me that there was evidence of the improper handling of large sums of money, the property of the Railway Administration, and I thereupon proceeded to the British consulate and laid the case before the British consul, who, after satisfying himself that the evidence was absolutely convincing, issued a warrant for the arrest of Mr. Butler Wright on the charge of embezzlement and misappropria- tion of funds.
I communicated with the joint agents, the British and Chinese Corporation, Hong Kong, by telegram on Friday, and, on their advice, procured the issue of the warrant referred to, and on Saturday I called at their office in Hong Kong and personally saw Mr. Gresson, who, together with myself, paid a visit to the police authorities.
Upon ascertaining that Mr. Butler Wright had left by the "Tenyu Maru" for Shanghae, touching at Keelung, Formosa, Mr. Gresson sent certain cables with the view of the prevention of his landing at Keelung, as Great Britain has no extradition treaty with Japan. It was, however, ascertained later that the vessel had touched at Keelung and afterwards proceeded to Shanghae with Mr. Butler Wright as a passenger. Cables had already been sent in anticipation of this, and this afternoon (Monday) we learn of his arrest at Shanghae.
The case will probably he tried before a special Court at Shameen, Canton, in the British Consulate, and I was informed this morning by Mr. Fox that the Crown (Rex B.) would probably prosecute.
With reference to the total amount of the defalcations it is at present impossible to give a figure of any degree of accuracy. In a few days Mr. Power, who is now working in the matter in conjunction with the auditors already engaged in the office, will, I hope, be able to communicate it to your Excellency.
In connection with the audit I may say that a complete verification of accounts to date will be shortly forthcoming in addition to an exposure of defalcations. The general statement of expenditure against estimate is already completed for all districts to the 30th June, and will soon be brought up to the 31st August last, so that your Excellency can, I think, rest assured that a thorough clearing up of all matters is in hand, which may go some way to obliterate the memory of the extremely regrettable occurrences reported upon in this letter.
[37953]
No. 1.
Mr. C. S. Addis to Foreign Office.-(Received October 13.)
Hong Kong and Shanghae Bank, 31, Lombard Street, London, October 13, 1909.
Dear Sir Francis,
SIMON writes that fresh instructions have been sent to M. Cumbon to approach Sir Edward Grey with a view to joint diplomatic action at Peking in re the Szechuan Railway extension.
It appears that Cambon's instructions in the first instance were not sufficiently precise, and that this may account for the delay in his movements.
I enclose a copy of Simon's letter.
Inclosure in No. 1.
M. Simon to Mr. C. S. Addis.
Yours truly,
C. S. ADDIS.
Bunque de l'Indo-Chine, Paris, Cher Mr. Addis,
le 12 octobre, 1909. D'UNE démarche faite ce matin au Quai d'Orsay j'ai retiré l'assurance que M. Cambon avait, dès le 1er octobre, été prié d'approcher Sir Edward Grey pour lui faire connaître le sentiment de notre diplomatie au sujet des affaires chinoises, ce Mais sentiment étant d'ailleurs conforme à ce que je vous écrivais le 30 septembre.
j'ai cru comprendre que les instructions données à M. Cambon n'insistaient pas assez sur la nécessité de faire la démarche commune à Pékin avant toute réunion des banquiers ou même avant toute négociation nouvelle entre banquiers. Il est probable aussi que ces instructions n'indiquaient pas l'urgence des décisions à prendre, car aucune réponse n'a encore été reçue de notre Ambassadeur à Londres.
J'ai donc obtenu que l'on écrivit à nouveau aujourd'hui pour préciser les instruc- tions et hâter la réponse. Ce n'est qu'après réception de celle-ci et avec l'appui de la diplomatie anglaise que les démarches pourront être faites à Berlin, puis enfin à Pékin. Tout ceci entraîne donc bien des délais et je crains que la situation de nos négociateurs à Pékin ne devienne bientôt un peu délicate; mais que pouvons-nous faire d'autre §
Croyez-moi toujours, cher Mr. Addis, votre tout dévoué,
H. SIMON.
[2471 n-1]
With, &c.
FRANK GROVE.