i
This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[9386]
No. 1.
117
C
13346
[March 14.]
SECTION 1.
Tay
Dear Sir Francis,
Mr. Addis to Sir F. Campbell.-(Received March 14.)
Hong Kong and Shanghai Banking Corporation,
31, Lombard Street, London, March 10, 1911.
I ENCLOSE Hillier's telegram of to-day. There are three mutilated cyphers which are now being repeated, and I hope to be in a position to send you a corrected copy to-morrow.
The proposal is to exclude the Chingmen-Hanyang section from the scope of the Hukuang agreement. The approximate length of the section is 325 kilom., and if the Germans and Americans are prepared to make the required sacrifice it is not for us to object. I enclose a sketch map of the railway showing the section in dispute.
In a subsequent telegram just received, Hillier wires that 1 am to receive particulars of the American currency loan agreement to-morrow.
A copy shall be sent you as soon as received.
Yours truly,
C. S. ADDIS.
Enclosure in No. 1.
Copy of Telegram received from Peking Office, March 10, 1911. HUKUANG railway communicate the following to respective groups from E. G. Hillier, H. Cordes, M. Casenave, W. D. Straight:-
At the meeting 7th March, Board of Communications, Peking, refused to reopen negotiations unless groups consent to omission from agreement of branch line Chingmen to Hanyang, on the grounds that construction right for all branch lines had been granted to Hupeh (Yang-tsze Provinces) Provincial Company. Considering long delay and Provincial agitation, Chinese demand regarding branch line seems not unreasonable, but they have also proposed change affecting other terms of agreement which cannot be accepted. We are now confronted by deadlock, which can only be removed either by further diplomatic pressure or by compromise in view of Provincial opposition. We doubt if diplomatic pressure would succeed in forcing Chinese to include branch line in final contract, and believe that it may have to be invoked in any case to oblige them to adhere to other terms of original agreement. We fear that if legation now press for including of branch line, resulting delay will afford opportunity to new competing Anglo-Belgian Russian groups, with whom we suspect Li Ching Fong to be in communication. We are, therefore, strongly of opinion situation calls for compromise, and we recommend that Ministers should be requested to lay following terms before Chinese Imperial Government, on behalf of groups, for immediate acceptance: Amount and other terms of original and supplementary agreement to remain unaltered; Hanyang branch line to be constructed with native funds by Provincial Company within three years, at the expiration of which, if it is not yet completed, same will be completed under German chief engineer with supplementary loan borrowed from group.
Proposed arrangement will necessitate American group temporarily waiving sub-section in consideration of corresponding sacrifice German group, German and American rights will revive in the event of Hanyang branch constructed with foreign capital, or, if not, sacrifice to be compensated by corresponding preference in subsequent business.
"We believe foregoing, without sacrificing principle of original agreement or causing loss to groups, will enable Chinese to meet difficulty which we cannot reasonably ignore.”
[1920
-1]