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[This Document is the Property of His Britannic Majesty's Government (
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stating that the people are very anxious to collect capital for the line, they are therefore permitted to formally establish a company for the collection of capital. In the future, as regards railway matters, the settled and satisfactory method adopted by the provinces of Hunan and Kwantung should be kept in view, and an Imperial decree applied for giving authority to act in conformity therewith."
Your Highness,
Enclosure 2 in No. 1.
Mr. Max Müller to Prince Ch'ing.
Peking, April 22, 1910. ON the 24th March last the Yu Chuan Pu published an order authorising the gentry of Hupei to form a railway company to raise capital and to prepare for the issue of shares, in the same manner as the companies already established in Hunan and Kuangtung.
As this decree might well be interpreted in a sense unfavourable to the under- takings entered into with the International Syndicate regarding certain railway lines to be built in the provinces of Hupei and Hunan, I have the honour to request your Highness to be so good as to inform me of the intentions of the Imperial Government in the matter.
I take this opportunity to call your Highness's attention to my note of the 12th February last respecting the same question, and to remind you that I have as yet received no reply.
I avail, &c.
W. G. MAX MÜLLER.
CHINA RAILWAYS.
CONFIDENTIAL.
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SECTION 3.
[15998]
No. 1.
Mr. Max Müller to Sir Edward Grey.-(Received May 9.)
(No. 112.) Sir,
Peking, April 18, 1910. I HAVE the honour to transmit to you herewith copies of two letters addressed to me by Lord Ffrench, the Peking representative of Messrs. Pauling and Co., in connection with the Chinchow-Aigun Railway agreement.
In the first letter Lord Ffrench informs me that the partial control in the operation of the proposed railway, which had been secured to the American group and Messrs. Pauling and Co. by the agreement of the 2nd October, 1909, had been abandoned, presumably prior to the issue of the Imperial Edict on the 20th January, and that the railway would be administered and controlled solely by the Chinese Government. Lord Ffrench came to see me the day before yesterday, and told me that he had given this information to the Minister on the very day that he was taken ill; and be asked me whether, in view of certain references made by you, Sir, in Parliament to Messrs. Pauling's arrangement with the Chinese Government in regard to the proposed railway as constituting a concession," I would not telegraph to you that the elimination control on their part in the operation of the railway places their agreement any outside the category of "concessions.'
of
The same day I received in the China Railways print a copy of Messrs. Pauling's letter to the Foreign Office of the 14th February, from which I see that you are already in possession of information to the same effect. I have informed Lord Ffrench of this, and told him that under the circumstances I shall only forward a copy of his letter to you by post.
In his second letter Lord Ffrench requests me to inform you that the agreement between Messrs. Pauling and Co. and the American group in regard to the financing and construction of the proposed railway between Chinchow and Aigun has been ratified.
Mr. Straight tells me that he is leaving for St. Petersburgh on the 28th instant, his intention being, I understand, to endeavour to persuade the Russian Government to withdraw their opposition to the construction of the line at all events as far as Taitsibar.
I have, &c.
W. G. MAX MÜLLER,
Sir,
Enclosure 1 in No. 1.
Lord Ffrench to Mr. Mar Müller.
Peking, April 16, 1910. I HAVE the honour to inform you that on the 6th October, 1909, I handed to his Excellency Sir John Jordan a copy of an agreement, dated the 2nd October, 1909, entered into between the Viceroy of Manchuria, the American group, and Messrs. Pauling and Co. (Limited). This agreement provided for the financing, construction, and operation after completion, of the proposed railway from Chinchow to Aigun. I subsequently informed his Excellency Sir John Jordan on the 22nd January, 1910, that by mutual arrangement between the Chinese authorities, the American group, and Messrs. Pauling and Co. (Limited), the partial control in the operation of the proposed railway, vested in the American group and Messrs. Pauling and Co. (Limited) by the agreement of the 2nd October, 1909, had been abandoned, and that the railway after completion would be administered and controlled solely by the Chinese Government. His Majesty's Minister for Foreign Affairs having recently referred to our arrangements 'concession," I with the Chinese authorities with regard to the proposed railway as a have now the honour to further call your attention to the fact that the elimination of any
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