2
for some time, the stumbling-block being the provision of funds for the upper river works. We have asked the taotai to inform us definitely whether the provincial Government will or will not provide the money required, but have been unable as yet to obtain any reply from him. I understand that he has referred the question to the Viceroy, and is awaiting his instructions in the matter.
I have, &c.
F. E. WILKINSON,
[This Document is the Property of His Britannic Majesty's Government.]
[B]
CHINA RAILWAYS.
CONFIDENTIAL.
[18996]
No. 1.
252
со
19141
RECR
Rro 23 JUN 10,
[June 7.
SECTION 1.
Sir Edward Grey to Mr. Whitelaw Reid,*
Foreign Office, June 7, 1910. Your Excellency,
WITH reference to my note of the 21st ultimo respecting the Hukuang loan, as your Excellency is already aware, an agreement was signed at Paris on the 24th ultimo by the representatives of the British, American, French, and German groups on the following basis :---
1. Finance and material to be equally divided.
2. British group to retain full engineering rights on Hankow-Canton line. Hankow-Szechuan line to be divided equally between the four groups in the following order :---
Germans, 800 kilom, chief engineering rights, of which 200 kilom. sub-engineering rights are conceded to the Americans; Americans, 400 kilom. chief engineering rights, plus 200 kilom. sub-engineering rights as above; British, 600 kilom.; and French, 600 kilom.-French and British groups having exchanged sections.
3. Purchasing agents will follow chief engineers as regards nationality.
4. American group agrees to accept one-fourth of whole loan in lieu of former claim to half of Szechuan line.
As regards possible extension beyond Chengtu, any addition up to 600 kilom. in respect of engineering rights to be equally divided between American, British, and French groups, and any further extension to be divided equally between all four groups.
I have now the honour to state that His Majesty's Government approve of this arrangement, and, subject to the concurrence of the three other Governments concerned, they consider that the Chinese Government should be formally requested without delay to complete the loan agreement of the 6th June, 1909, already initialled by them, as well as the subsequent supplemental agreements come to with a view to the inclusion of the American group in the former tripartite arrangement, a step which, it might be pointed out, is in accordance with the express wishes of the Chinese Government.
In instructing the representatives of the four Powers at Peking to address an identic note to the Wai-wu Pu on the lines above indicated, I would suggest that the latter should be reminded of the promise given by Prince Ch'ing to the British and American representatives in October 1903, to the effect that, should China desire to build a line from Hankow to Szechuan, and should Chinese capital be found insufficient, she would obtain the necessary foreign capital from Great Britain and the United States. it should at the same time be pointed out to the Wai-wu Pu that, in accepting the present loan agreement, this undertaking must henceforward be held to extend to France and Germany as well as to the two countries to whom the promise was originally made.
I trust that the United States Government will see their way to ratifying the arrangements arrived at.
It would seem desirable that no time should be lost in sending out instructions to the four representatives at Peking,
A similar note will be addressed to the French Ambassador and German chargé d'affaires in London.
!
[2792 g-1]
I have, &c.
E. GREY.
Also to M. Cambon and Herr von Kühlmann, mutalis mukandis.