[This Document is the Property of Hls Britannic Majesty's Government, and should be
returned to the Foreign Office if not required for official use.
36
CHINA.
Decypher.
Sir R. Macleay. (Peking),
D.
R.
March 25th, 1926.
8.35.p.m. March 25th, 1926.
6.5.p.m. Karch 25th, 1926.
No. 133.
·000-
Your telegram No. 102.
I would call your attention to two considerations:-
1. Our consortium obligations with special refer-
ence to completion of Canton Hankow line.
2.
Necessity of securing consent of Ministry of
Communications to any arrangements made unless we are
prepared to recognise Canton government to the extent
of ignoring Central government in regard to railway
construction in Kuangtung and looking only to former
for fulfilment of any financial obligations entered
into. In this cormection we must bear in mind interests
of Canton Kowloon railway bondholders who whetever their
future prospects may be are now dependent on Central
government for meeting loan service whether out of
Shanghai-Narking railway revenues or custome funds.
If conservetive Central government under the aus- pices of Wu Poi-fu is now established here situation of 1923 may be reproduced, see my despatches Nos.212 and 234 of April 3rd and April 16th, 1923, copies of which were gent to Hongkong.
Under the circumstances I would advocate caution in regard to railway loan proposals unless they are made with necessary reservations concerning consent of Ministry of Communications which might, if relations between Feking and Canton ere going to be embittered by pending political changes, render them merely irritating to Cantonese.Per- haps it might be better to wait and see how negotiations develop and whether Cantonese themselves put forward re- quest for financial assistance.
Addressed to Foreign Office No. 133. Repeated to Hongkong.