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

CHINA RAILWAYS,

CONFIDENTIAL.

[36982]

No. 1.

372

421

[October 5.]

SECTION 14 JAN [0]

Sir J. Jordan to Sir Edward Grey.-(Received October 5.)

(No. 163.) (Telegraphic.) P.

Peking, October 5, 1909. IN continuation of my telegram No. 161 of yesterday's date, I have to report that I have now received from Lord ffrench a copy of the preliminary agreement, signed at Mukden by himself as Paulings' representative, the Viceroy, the governor, and the agent of the American syndicate, providing for the construction of the railway from Chinchow to Aigun.

The financing is to be in the hands of the Americans, their associates, however, participating to the extent of 40 per cent. of the total capital.

The operation of the line is to be controlled by a company to consist only of British, Chinese, and Americans, no other nationalities being admitted except with the consent of the Chinese Government.

As regards the construction of the line, Paulings are given both the contract for the same and the right to appoint the chief engineer.

The Viceroy and the governor have been ordered by an Imperial Edict, dated the 3rd instant, to draw up a memorial on the whole transaction, in concert with the Boards of Foreign Affairs, of Communications, and of Finance, for submission to the Throne.

[2471 e-1]

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