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[This Document is the Property of His Britannic Majesty's Government.]
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AFFAIRS OF CHINA.
CONFIDENTIAL.
[20183]
6.6 10637
[May 26.]
SECTION 1.
REC?
MEG 16 JUN 11
No. 1.
Sir J. Jordan to Sir Edward Grey-(Received May 26.)
(No. 203. Very Confidential.) Sir,
Peking, May 10, 1911. I HAVE the honour to transmit to you herewith copy of notes of an interview between Mr. Straight and M. de Hoyer, representative at Peking of the Russo-Belgian group of financiers.
Mr. Hillier, who furnished me with this document, informs the that the Russian Minister, in conversation with Mr. Straight yesterday, confirmed the substance of the policy indicated by M. de Hoyer, and expressed himself in favour of an understanding between the four groups and the Russo-Belgian group in respect to railway enterprise in Mongolia and other regions where Russia has a political interest, more especially in regard to the Kalgan-Kiachta line.
It is evident that the Russo-Belgian group is not likely to prove a formidable competitor for railway business in China proper, but some understanding between it and the four groups in regard to future railway enterprise in Mongolia and Manchuria seems desirable.
I have, &c.
J. N. JORDAN.
Enclosure in No. 1.
Memorandum regarding Proposals from M. de Hoyer, Representative at Peking, of the Russo-Belgian Group.
ON Friday, the 5th May, 1911, M. de Hoyer, after a general conversation with Mr. Straight regarding the currency loan and the Chinchou Aigun Railway, stated that he had given considerable thought to the position of his group vis-à-vis our own. He stated that he had no desire to compete with us, as such competition would be profitable only to the Chinese.
M. de Hoyer then suggested that three relationships were possible :-
1. Competition.
2. A mutual understanding regarding prices which might be quoted by the Chinese Government and an arrangement for mutual non-interference; with possible co-operation in certain specific enterprises.
3. Co-operation.
Mr. Straight enquired whether M. de Hoyer's second suggestion contemplated a division on geographical lines. He replied that he regarded a geographical division as undesirable, as the Chiucse would not regard with favour the operation of a Russian group in Manchuria and Mongolia, which field would be naturally his if a geographical division were made.
M. de Hoyer stated that he did not wish to interfere with the Hukuang loan, but asked whether he had other enterprises in mind in Central and Southern China. Mr. Straight replied that the groups had certain claims on the Chengtu extension of the Hankow-Szechuan Bailway. M. de Hoyer said that he had no intention of meddling in this matter. He then asked whether the quadruple groups would be prepared to co-operate with his group in loaning to China funds for the construction of the Kalgan-Kiachta Railway.
Mr. Straight replied that he could not say but that he personally thought that the American group at least might be willing to favour such an arrangement if it were understood that this did not contemplate the abandonment of the Chinchou-
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