[This Document is the Property of His Britannic Majestys Government.]
2
l'Angleterre et l'Allemagne pour contrôler en chef les premières sections du Hankéou- Canton et du Hankéou-Tchentou, en acceptant en outre de partager en quatre sections égales de 600 kilom. la ligne Sétchouen, le Gouvernement français estime qu'il fait preuve d'un esprit de conciliation et de modération qu'en toute équité le Gouvernement anglais devrait reconnaître en adhérant aux deux réserves expresses mises à notre assentiment: attribution de la quatrième section du Sétchouen, qui nous rapproche de la zone du Yunnan où nous avons des intérêts de fait considérables, et adjonction d'un ingénieur en second sur le Hankéou-Canton.
Paris, le 11 février, 1910.
+
[B]
CHINA RAILWAYS,
CONFIDENTIAL
395
[February 15.16486
SECTION 20
REGE 4 MAR 10
[5384]
Sir,
No. 1.
Messrs. Pauling and Co. to Foreign Office.—(Received February 15.)
26, Victoria Street, Westminster, London,
February 14, 1909.
I AM desired to inform you that we have received an urgent cable from our representative, Lord ffrench, on the matter of the Chenchow-Aigun construction contract, which has been finally approved and authorised by an Imperial edict.
I am directed to draw your attention to the letter which we addressed to His Majesty's Under-Secretary of State for Foreign Affairs on the 17th December last, in which we, in the most earnest manner, respectfully requested His Majesty's Govern- ment to render to British contractors the same measure of support and assistance which the American Government has rendered to her subjects on the financial side of this same construction contract.
It is, we confess, with but little hope that we again venture to address His Majesty's Secretary of State on this subject.
In the letter above referred to we ventured to point out that an inadvisable situation would be created if the final edict sanctioning the construction of the line were issued without the Japanese having stated that moderate participation in the scheme which His Majesty's Government led us to understand the Japanese Govern- ment desired in order to withdraw their opposition.
We have further been led, both officially and unofficially, to understand that His Majesty's Government would do their best to obtain this information from the Japanese Government, and that, when obtained, they would so inform us.
The non-definition by Japan of her views on the matter of participation has created such a prolonged period of delay that it seems a perfectly justifiable presump- tion on our part to believe that Japan's policy is to effectually prevent the construction of the line.
Lord ffrench now informs us that the British Minister in Peking has been instructed to inform the Chinese Government, and has so informed them, that, in His Majesty's Government's opinion, the Chinese should consult both the Japanese and the Russian Governments before signing the final arrangements for the contract with us.
Lord ffrench also informs us that neither the Chinese authorities nor the American Government will agree to a participation for either Government other than that founded on a reasonable business basis, inasmuch as the Chinese have granted no concession or monopoly to anyone.
All that has been sanctioned is a loan agreement for the raising of the necessary funds and a construction contract for the building of the line.
The line, when completed, remains the property of the Chinese Government, and the American loan would be similar to other railway loans issued by the Chinese Government.
The present action of His Majesty's Government amounts, in the eyes of the Chinese Government and our American friends, practically to a complete disowning of the interests of ourselves, as a British firm of contractors, in the scheme, and to most clearly signify that His Majesty's Government is unfavourable to the construc- tion of this railway. We are advised by Lord ffrench that the effect will be to seriously injure our position in China and to impair our relations with our American friends.
We have been more than once assured by His Majesty's Government that they would render as much and as equal support as they had been accustomed to render to the British and Chinese Corporation in their railway undertakings, and Secretary Sir Edward Grey was good enough personally to assure our Mr. George Pauling and Mr. Percy Browne that this matter was engaging his personal and careful considera- tion, and that all that could be done for us in the matter would be done.
[2631 p-2]