77
But
construction on any large scale is impossible unless she
gets some windfall like the remitted Boxer Indemnity.
the excellent security which the Indemnity would provide
she could, of course, raise a loan from the Consortium.
since the Chinese distrust the Consortium and wish to break
its blockade, they not only decline to approach it for a
loan to complete the Canton-Hankow Eailway, but they appear
to be trying to evade their legal obligations to the British
and Chinese Corporation because it is so closely identified
with the British Consortium Group. This seems to be the
reason why they are negotiating with Mesers. Reiss, Massey
and Company. If these negotiations are successful and
Messrs. Reiss, Massey and Company get the contract, His
Majesty's Government would have to protest most strongly
against this breach of the 1911 Agreement.
If we succeed, then the
If the Chinese persist in their plans for completion
of the Canton-Hankow Railway we must do our best to see that
the 1911 Agreement is observed.
Chinese Government must purchase all foreign material con-
corned through the British and Chinese Corporation, and if
they do so they have acquitted their obligation. But the
British and Chinese Corporation is itself under a further
obligation to their international partners in the Consortium
Agreement. Their obligation is to deal with these orders
on "the principle of complete equality in every respect be-
"tween the parties" to the Consortium Agreement, i... orders
must be put up to open tender in the markete of the four
countries concerned (vis. Great Britain, the United States,
France, and Japan). This obligation is quite definite as
regards the three important unbuilt railways mentioned above which have been pooled with the Consortium by the British
and
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