2

At the Wuhu terminus of the line Mr. Berents had instructions before leaving to commence the filling in and banding of the company's settlement lot and the deepening of the boundary creek, but these works will probably be postponed until

I have, &c.

his return.

H. H. FOX.

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

[B]

CHINA RAILWAYS.

CONFIDENTIAL.

471

9850

Rece [March 7 4 APR 10

SECTION 1.

[7909]

(No. 51.) Sir,

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received March 7.)

Peking, February 15, 1910.

I HAVE the honour to transmit to you herewith a copy of the identic note which, in conjunction with the German and French Ministers, I have addressed to the Chinese Government with reference to the issue of an Imperial edict referring to the Board of Communications an application from certain native capitalists for a con- cession to build the Hupei section of the Hankow-Canton and the Hankow--Szechuan Railways, together with a literal translation of the edict in question.

Mr. Hillier spoke to me on the subject the day after the edict was published, but, as I explained to you in my telegram No. 21 of the 5th February, I thought it best to endeavour to ascertain what action, if any, the Board of Communications was likely to take on the edict, as I was unwilling needlessly to give the Chinese Govern- ment an opportunity of asking awkward questions as to our preparedness to sign the initialled agreement. My impression of the real object of the edict, of which the version contained in your telegram No. 21 of the 2nd February appeared to give rather an exaggerated idea, was that it was a convenient means of shelving an inconvenient application, and this impression has been subsequently confirmed by Liang Shih-yi, Director-General of Railways, who said that the board would not take any action on the edict. However, the German Minister having received instructions to make a formal protest, and having been erroneously informed that I had already been similarly instructed, the French Minister and I thought it better to ask authority to join in addressing a mild identic note to the Chinese Government calling attention to the terms of the edict as conflicting with the spirit of the agreement of the 6th June, Count Rex said that he had gathered from Prince Ching that such a step would not be acceptable to the central Government as strengthening their hands in dealing with the opposition in the provinces, while we were all alive to the possible danger involved in passing by the edict in total silence. Count Rex subsequently agreed to tone down the rather peremptory terms of the note as originally drafted by him, so as to enable M. de Margerie and me to send notes couched in identic terms. 1 have little doubt that the action of the bankers here was largely influenced by the hope of thus bringing home to their respective groups the great danger of further delay in arriving at an acceptable agreement among themselves.

I have, &c. (For the Minister),

W. G. MAX MÜLLER.

Enclosure 1 in No. 1.

Sir J. Jordan to Prince Ch'ing.

Your Highness,

Peking, February 12, 1910. ON the 6th June, 1909, his Excellency Chang Chih-tung, acting on behalf of the Chinese Government, initialled an agreement with the British, French, and German groups for a 5 per cent. loan of 5,500,0001. for the construction of the Hukwang sections of the Canton-Hankow and the Szechuan-Hankow Railways.

On the application of certain Chinese capitalists for the railway concession in Hupei, an Imperial edict was published on the 30th January, which has the appearance of ignoring the rights acquired in the aforesaid agreement of the 6th June, 1909, by the three groups, in the construction of the Hukwang sections of the Canton- Hankow and the Szechuan-Hankow Railways.

My Government are desirous of obtaining an assurance that this edict cannot be

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