COPY.
Cassel Agreement; interview of Mr Bernard with C.C.Wu . H.M.Consul-General, Canton, to E.M.Minister, Peking.
No.77.
)} copies.
sir,
777
H.B.M.Consulate-General,
Canton.
September 27th, 1921.
I have the honour to report that, after the exchange of several private letters between Mr.C.C.Wu and myself on the subject of the Cassel Agreement, it was arranged that a re- presentative of the Hongkong interests therein concerned should meet him and talk over some alternative scheme on the lines
indicated in your telegram No.30 of June 13th, 1921.
Accordingly Mr.D.G.M .Bernard, the head of Messrs. Jardine, Matheson & Company, Ltd. at Hongkong, came to Canton
yesterday and had an interview with the Vice Minister of
Foreign Affairs which, lasted about two hours.
It resulted in nothing satisfactory or conclusive but
it may form the basis of further conversation.
Mr.Wu stated at the outset that the Cassel Agreement
as far as his Government was concerned was dead and done with, As to alternative proposals they had not yet been completely
thought out, but the general idea was to nationalize the mines,
and those desirous of developing them would be allowed to do so
on the following terms. The Provincial Goverment would hand
over the mining sites for a period of 15 years to foreign or
native capitalists who would have to bear all costs of
equipment and working. In return they would receive one third
of the net profite; the remainder to go to the Provincial
Government. As to prospecting the province would be divided into
several
ir Beilby F.Alaton, K.C.M«G •,
C.B.,
His Majesty's Minister,
PEKING.