Enclosure in No. 1.
Consul General Goffe to Mr. Clive.
(No. 63.) Sir,
Canton, July 12, 1920), WITH reference to your despatch No. 34 of the 10th ultimo, on the subject of support for Major Cassel's syndicate for prospecting for coal in Kwangtung province, I have the honour to transmit berewith copy of a letter recently addressed to me by Major Cassel, giving an assurance that the Kwangtung Collieries (Limited) will have a a very strong British control. As you will observe from his letter, Major Cassel proposes to arrive in Peking about the end of August.
I have, &c.
HERBERT GOFFE.
(Confidential.)
5
Enclosure 3 in No. 1.
Sir R. E. Stubbs to Mr. Clive.
Sir,
Hong Kong, July 5, 1920. IN continuation of my letter of the 20th May, 1920, I have the honour to inform you that the group represented by Mesars, Jardine, Matheson and Co. (Limited) aud Sir C. P. Chater, C.M.G., have now joined the syndicate promoted by Major L. Cassel and Mr. C. Montague Ede for the acquisition of prospecting rights in Kwangtung province.
The adherence of this group materially adds to the strength of the promoting syndicate, and I trust therefore that every effort will be made to secure the ratification of the agreement by the Central Governinent.
I have, &c.
R. E. STUBBS, Governor.
Sir,
Enclosure 2 in No. 1.
Major Cassel to Consul-General Goffe.
July 9, 1920. I HAVE the honour to acknowledge receipt of your letter dated the 3rd July with thanks, and to inform you that Mr. Sun Pak Ming, myself and Mr. C. Montague Ede, who were the syndicate referred to in the opening paragraph of the agreement dated the 23rd April, 1920, have transferred our rights to the Anglo-Chinese Proprietary Syndicate (Limited), a private limited liability company registered in the colony of Hong Kong with a nominal capital of 300,000 dollars.
The company was formed to define the rights of the original concessionnaires. Through the good offices of the Hong Kong Government, the company was approached by Messrs. Jardine, Matheson and Co. (Limited), Butterfield and Swire, Mackinnon, Mackenzie and Co., and Sir Paul Chater, C.M.G., with a view to their acquiring an interest in the syndicate. As a result of the above-mentioned group have acquired 9/30ths of the shares, and have, under an agreement, an equal voting power with the original concessionnaires until the formation of the final company, the Kwangtung Collieries (Limited).
Under the agreement dated the 23rd April, 1920, it is provided that the directorate of the Kwangtung Collieries (Limited) shall consist of a British chairman and three European and three Chinese directors. The articles of asssociation of the Kwangtung Collieries (Limited) will provide for the appointment of seven directors, four of whom (including a chairman) shall be British and three shall be of Chinese nationality.
you
I have the honour to assure you that the Kwangtung Collieries (Limited) will have a very strong British control, not only from the actual directorate, but also from the firms above mentioned who are interested in it, and I shall be greatly obliged if will communicate the above to His Britannic Majesty's Minister to China at Peking.
With regard to His Majesty's Minister's recommendation that I and my Chinese associate should visit Peking and approach the Government direct with a view to obtain the Central Government's sauction to the agreement, I beg to inform you that it is our intention to proceed to Peking as soon as possible, and anticipate leaving here by the "Empress of Russia" on the 26th August for Shanghai, arriving in Peking on the evening of the 31st August.
I regret the delay, which is, however, unavoidable, as I have to more or less await the convenience of my Chinese associate, and have much business to get through before I can possibly leave Hong Kong.
I have, &c.
L. CASSEL.
Sir,
Enclosure 4 in No. 1.
Note to Wai-chiao Pu.
Peking, August 30, 1920. I HAVE the lonour to inform your Excellency that on the 23rd April last an agreement was concluded between the provincial authorities of Kwangtung of the one part and Major Cassel, a British subject, and Sum Pak Ming, a Chinese citizen, representing an Anglo-Chinese syndicate, both of Hong Kong, of the other part, whereby a joint Anglo-Chinese company was to be formed for the purpose of mining coal in certain districts of the province.
It was originally intended that the agreement should be submitted for the approval of the Central Government immediately upon the reunion of the southern provinces with Peking, which at the time of signature was believed to be imminent. Unfortunately the prospect of reunion did not materialise, and the events of the summer seemed likely to delay such reunion indefinitely. As much valuable time was being lost and both parties were anxious to proceed at once with the execution of the agreement, a supple- mentary agreement was made on the 2nd August whereby the syndicate undertook to pay the stipulated deposit forthwith in order that the demarcation of mining areas might commence, and the period of nine months originally allowed for the formation of the company was extended to fifteen months in order to provide for the unexpected delays caused by the political situation.
It is hardly necessary for me to point out to your Excellency the immense importance which attaches to the early development of adequate coal supplies for South China, where Chinese and foreign commercial, industrial and shipping interests have for many years been seriously handicapped by dependents on supplies imported at great cost from North China and abroad.
Much time and attention has been devoted in the past to the question of rendering Chinese and foreign capital available for the development of a local coal supply, and the present agreement affords the best possible prospect of uniting Chinese and British effort for the furtherance of our mutual interests by co-operative methods, which have already proved so beneficial in similar mining enterprises in North China,
The British parties to the agreement represented by Major Cassel comprise some of the oldest established and best known firms in China, and enjoy the full confidence of His Majesty's Government.
I have the honour to ask that your Excellency will be good enough to communicate the enclosed agreements to the Chinese Government, and will use your good offices to ensure their approval at an early date, thus benefiting our mutual interests and cementing the friendly relations between our respective countries.
(Copy unsigned.)
[7070 aa- -3]
C
767