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a.
COPY.
No. 327.
Sir,
July 11th., 1918.
203
C A
62543
RE:
R 27 C18
In October last the Governor of Hongkong
addressed me in regard to a proposal by a number of British interests, including the Hongkong and Shanghai Bank and Messrs. Järaine, Matheson and Company, to endeavour to obtain some control over the coal deposits of the Canton Province in the interests
of Hongkong. I have received no information as to the progress
of the scheme, and in the present disturbed state of the Province
it has probably been difficult to conclude any agreement.
The enclosed letter has now been received from
Mr. Moore-Bennett, Director of the Anglo-Chinese Engineers
Association, outlining a somewhat similar scheme for the develop-|
-ment of the iron and coal deposits in the basin of the North
River and along the coast line of the Canton Province.
I have been unable to ascertain from Mr. Moore-
-Bennett whether he is authorized to advance any concrete proposal
on behalf of Messrs. Bewick Horeign and Company and Sir William
Beardmore Ltd, but he states that he has kept them fully
informed of his ideas on the subject of these mines, and it is
possible that they may approach you on the subject.
I gather that he proposes that the two firms
should endeavour to obtain control over the coal and iron deposits in Kuangtung, that an iron and steel works should be
established under their direction in Chinese territory, that
they should provide the necessary financial assistance and that the undertaking should be supported either by His Majesty's
Government or by the Government of Hongkong, who should decide
the manner and method of control.
In the absence of fuller information as to the
two