[This Document is the Property of His Britannic Majesty's Government.]
C 0
37666
AFFAIRS OF CHINA.
REC?
CONFIDENTIAL.
Reat 9 FC 10
[November 23.]
SECTION 2.
[42650]
No. 1.
Mr. Addis to Foreign Office.-(Received November 23.)
Hong Kong and Shanghai Banking Corporation, 31, Lombard Street, November 22, 1910.
Dear Sir Francis,
IN continuation of my letter of the 16th instant, I now enclose a second telegram from Baron Takahashi, with reference to the proposed addition of a Japanese group to our Anglo-Franco-Germanic-American agreements.
You will observe that Barou Takahashi adinits that the Japanese have no concession to offer to the other groups as the price of admission, but bases his application on the ground of Japanese abstention from competition during the past three years. The inference which, apparently, Baron Takahashi wishes to convey to the groups is that unless they accede to Japanese demands they will have to reckon with competition from them for the future; in effect, it is a polite species of blackmail.
Yours truly,
Enclosure in No. 1.
C. S. ADDIS.
Baron Takahashi to the Yokohama Specie Bank.
Tokyo, November 21, 1910. (Telegraphic.)
THE English, French, and German syndicate mentioned in my telegram was meant the Chinese Central Railway (Limited), as was understood by Mr. A. M. Townsend.
As we have much desire to join to the present syndicate, I instruct you to consult with Mr. Addis about the means to accomplish this object.
As to the group and bank mentioned in your telegram, we are ready to form them at any time from among our prominent bankers and financiers.
As to the considerations to be brought into this syndicate, I want to have it mentioned that in the former year Japanese capitalists were negotiating about railroad concessions in China, and when they were near the point of conclusion we made them to give up the same on account of our understanding with the French Finance Minister, as I mentioned in my last telegram. Since then we received many offers of similar character from China, but, respecting the interests of the Chinese Central Railway (Limited), we have kept on declining all of them until to-day. Therefore, at present, we have no railroad concessions or loans to offer for the consideration. But in future, if we change the policy pursued so far, we are confident that we are able to secure some concessions good enough for the purpose.
Thus, althongh we have no consideration to offer at present, fully consult with Mr. Addis about our joining with the syndicate, explaining the circumstances above mentioned.
As to the loans to be issued by each group, we wish to be placed under the same conditions as the American group.--TAKAHASHI.
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