[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[14516]
No. 1.
Papers communicated by Mr. Addís, April 19, 1911.
(1.)
[April 19.]
SECTION 1.
Telegram dispatched to Peking Office, April 13.
IN reply to your wire just received, state nature of modifications; unless they make fundamental change condition. I am of opinion banks will not agree.
(2.)
Telegram received from Peking Office, April 14.
RE your wire of 13th. Sheng has not informed us nature of modification, but fact that Chinese Government in loan agreement declares itself responsible for funds so deposited implies that fundamental change is contemplated.
(3.)
Telegram dispatched to Peking Office, April 15.
DEFERRING your and British Minister's opinion, I have recommended groups concede demand for deposits native banks.
(4.)
Telegram received from Peking Office, April 18.
FOLLOWING from groups representative, Peking, for communication to other groups -
C
At interview, Yuchuanpu, 17th April, Sheng approved revised draft in principle, subject to detailed examination of text. Article 14. We have added provision to the effect that transfer from designated Chinese banks to construction account, Hong Kong Bank, Deutsch-Asiatische Bank shall be made in amounts sufficient to cover oue mouth's construction estimate in advance. Yuchuanpu will furnish for the information of auditor quarterly statement of loan funds held by Chinese banks, which funds must not be withdrawn except for the purpose transfers to construction account."
Be the foregoing, if groups agree to revised terms, we can probably sign agreement this week. Four Ministers concur with us in urging the importance of immediate signature.
(5.)
Telegrams sent on April 18 to Deutsch-Asiatische Bank, Berlin, and Banque de l'Indo-Chine, Paris.
WITH reference to joint Peking telegram of to-day, if you approve, we propose wire Hillier that groups agree to revised terms and authorise representatives sign agreement.
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