403
2
"United States of America willing to concede whole of the 100 kilom. addi- tional engineering rights in Szechuen extension to France, on conditions Great Britain satisfies French demand as to sub-engineers, and provided our equal rights as to purchase of materials he fully guaranteed and existing arrangements with Germany not disturbed, and subject also to arrangements for interchangeability of bonds not later than one year after issue."
La maison J. P. Morgan and Co. nous informe que Messrs. Morgan, Grenfell, and Co., de Londres, transmettent simultanément au groupe anglais la communication ci-dessus en réponse à la proposition de Mr. Jamieson,
Veuillez avoir l'obligeance de nous faire savoir si le groupe français accepte la contre-proposition américaine et agréer, &c.
MORGAN, HARJES, AND Co. L. HAUSER.
Messieurs,
Enclosure 3 in No. 1.
French Group to Messrs. Morgan, Harjes, and Co. and Mr. Hauser,
Le 14 février, 1910. NOUS avons l'honneur de vous accuser réception de la lettre en date du 10 février, par laquelle vous voulez bien nous informer-
D'une part, que le groupe américain regrette de ne pouvoir accepter la proposition
de partage de la ligne du Sétchouen faite par Mr. Jamieson le 25 janvier;
D'autre part, que Messrs. Morgan and Co. proposent pour le partage de cette ligne la combinaison suivante :-
Groupe allemand: 800 kilom.
Groupe américain: 500 kilom. et en outre sous-ingénieur sur 200 kilom. de la fraction allemande.
Groupe français: 600 kilom.
Groupe anglais : 500 kilom.
Le groupe américain ne ferait cet abandon de 100 kilom. au groupe français que sous les conditions suivantes :—
1. Les droits de l'Amérique en ce qui concerne les fournitures de matériel seraient pleinement garantis ;
2. L'internationalisation de la cote de l'emprunt serait assurée après un an au maximum;
3. Les arrangements existant entre les groupes allemand et américain seraient respectés ;
4. Le groupe anglais donnerait satisfaction à Messrs. Harjes et Hauser; demande formulée par le Quai d'Orsay en ce qui concerne un sous-ingénieur sur le Hankéou-Canton.
Vous demandez enfin si le groupe financier français serait disposé à donner son adhésion à cet arrangement nouveau.
En réponse à votre communication, nous devons vous inforiner que les négocia- tions concernant cette affaire ayant été prises en main officiellement par le Ministère des Affaires Étrangères, et celui-ci traitant directement avec le Gouvernement anglais, le groupe financier français ne se sent plus qualifié pour donner lui-même l'adhésion que vous demandez.
américain
Nous n'avons pas manqué toutefois de porter les suggestions du groupe à la connaissance du Quai d'Orsay. Et nous avons retiré de cette conversation la conviction que notre Gouvernement-quelles que puissent être ses préférences pour les solutions préconisées par lui jusqu'à présent-ne refuserait pas son adhésion à une combinaison assurant à la France 600 kilom, de la ligne du Sétchouen et un sous- ingénieur sur la ligue du Hankéou-Canton. Le Gouvernement français insiste égale- ment pour que la section réservée à un ingénieur français, sur la ligne du Sétchouen, soit la quatrième, et non la troisième.
Il nous paraît donc, messieurs, qu'aucune objection ne doive être attendue du côté français si le Gouvernement américain peut amener le Foreign Office à entrer dans ses vues et à donner satisfaction aux demandes que nous venons de vous exposer.
Veuillez, &c.
[This Document is the Property of His Britannic Majestys Government.]
CHINA RAILWAYS.
CONFIDENTIAL
[5539]
No. 1.
7293 [February 16.]
SECTION 25 || MAR 10.
Mr. Hillier to Mr. C. S. Addis.-(Communicated by Mr. Addis February 16.)
Peking, January 24, 1910.
My dear Addis,
***
*
*
I HAVE your letter of the 31st December.
Shanghae-Hungchow-Ningpo Railway. In conformity with his promise, Liang Shih-yi handed to Sir J. Jordan on the 19th instant a memorandum, in the shape of a draft letter to the British and Chinese Corporation embodying the terms of his scheme. After exhaustive discussion by the three of us, Sir John, Liang, and myself, Liang was persuaded to make certain necessary amendments, and I now encloso a translation of the revised draft for the board's consideration. Sir John is sending a copy to the Foreign Office by this Siberian mail, with his observations, and we both concur in thinking that it is a clear document which fairly meets requirements, so far as we are able to judge them here, and subject always to the legal aspect of the case on your side, for as yet we do not even know the opinion of counsel as to the practicability of the proposed scheme. I sincerely hope, however, that the board will give it their most favourable consideration and wire me their reply, for it really seems to me to offer a practical solution of a most complicated deadlock, to which the Chinese are now sincerely anxious to put an end-if possible, before Sir J. Jordan takes his leave next spring. Please instruct me, when wiring, if bave the authority of the board to reply to and accept the letter as it stands, or what amendments, if any, they consider necessary.
You will note that, by the terms of the letter, the corporation is not bound to do anything within the specified term of four months; but if, within that time, they do make an application to the court, and it is granted, and in the meantime the local bureaux hand in their submission, the order of the court will not be made use of. To ordinary minds it might appear simpler to defer the exchange of letters until Liang has satisfied himself that there is no hope of doing anything with the gentry, but he has his reasons for wanting to have the arrangement in writing at once. I asked him if it was his intention to show the letters to the Chekiang and Kiangsu Companies, and he said no, but that he had his own method; probably he thinks it will be more effective to let the information leak out.
I discussed with Liang the following points :-
1. Court fees. I objected that this term is too vague, and suggested that, following the precedent of the suit for releasing the Northern Railways loan funds, the Chinese should undertake to refund the taxed costs of the application. The point has been waived until I hear your views. I said that I was sure the corporation would not insist upon rexatious trifles, but it was not fair that they should be out of pocket. The corporation may be put to some expense in telegraphing and advertising, but I think I would recommend them not to insist upon this, and accept the refund of actual legal expenses.
2. The last paragraph of the letter stipulates that, if the companies consent to hand over the railway to the control of the Yu-chuan Pu, the money they have expended on the railway shall be refunded to them. I suggested that this stipulation should be made more restricted and definite in its terms. Payment should only be made on a valuation of work done, and stores and materials on the spot, by the foreign engineer-in-chief, assisted, possibly, by another qualified engineer representing the companies. Liang said that it was fully the intention of the board to call for such a valuation; but the squaring of accounts would be a complicated and difficult matter, involving give and take on both sides, and he begged me not to place obstacles in the way, and risk the breakdown of the negotiations with the companies, by insisting upon too close a definition of the terms of surrender. It was in the interest, of the board to make the best terms they could. After consultation with the president the words "for railway purposes" were added in the text, and I think it would be wise to leave it at that. The phrase "for railway purposes" gives us, after all, the
[2631 q-2]
2001