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2765

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

CHINA RAILWAYS.

CONFIDENTIAL.

Rece [October 29.38 JAN 101

SECTION 2.

[39817]

No. 1.

Sir J. Jordan to Sir Edward Grey.- Received October 29.)

(No. 175.) (Telegraphic.) P.

RAILWAY loan negotiations.

Peking, October 29, 1909.

The advice, which I reported in my immediately preceding telegram of yesterday's date was to be telegraphed by Mr. Cordes to his principals in Berlin, does not appear quite satisfactory as now embodied in a memorandun" supplied to Mr. Hillier by the agent of the American syndicate.

The Germans, it is proposed, are indeed to give up the particular portion of the line in question in so far as the chief engineer for that section is to be an American, but the German engineer for the whole Hupei portion of the line is still to have the general direction over the Hsiangyang-Kuangshui section, as provided by the original agreement.

The Ichang-Ch'engtu section is to be apportioned as follows: Chief engineer for the first 500 kilom. beyond Ichang to be French, for the next 600 kilom. to be American, and for the last 500 kilom. to be British.

I have told Mr. Hillier, for the information of the agent of the American syndicate, that, in my opinion, it is for the various groups concerned to decide to what nationality the engineer for the section given up by the Germans shall belong, and that in general the present proposal does not recommend itself to my judgment.

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