C
46
Conf desp. of 15/12/03
No: 1 in Eastern
88.
4889/05
20756/05
No: 94 of Eastern
88.
See No: 124 Eastern 88.
Government of Hong Kong brought forward a proposal
that the Imperial Government should obtain an interest in the Hankow Canton line.
Official and semi-official correspondence
with the Corporation ended in the settlement of the
terns of a draft agreement between the Corporation and
the Chinese Government for a Loan to build the Railway,
and of a draft agreement between the Hong Kong and
Chinese Goverments for the working of the Railway;
and the Foreign Office agreed to instruct the Hinister at Pekin to assist the Corporation's representative
in negotiating the agreement.
3. Negotiations proceeded on their leisurely way during 1905 but in June of that year e new element
was introduced. The Hankow Canton concession was only
granted to the American Company on the condition that
it remained purely American: as a matter of fact
large blocks of shares had been bought by Belgium (chiefly by the late King Leopold) and it was believed
that the Belgians were simply acting as agents for Russia. The Viceroy at Tichang approached the "inister
with a view to getting a loan to buy out Pierpont Morgan's holding which would give the Viceroy control of the Company. The matter was urgent. Much tele- graphic correspondence took place with Hong Kong, and
between the Governor and His Britannic Yajesty's Minister: and finally a loan of £1,000,000 was made
by Hong Kong to the Viceroy on certain terms which will be found on pp.213, 214 of Eastern 88. The Viceroy.
at