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Financing of future railway developments and the "Open Door" policy.
Personnel of the Chinese Maritime
Customs.
He understood that the Foreign Office did not like to try
to influence the Bondholders' Committee. The practice
whereby a joint secretary was appointed from the Foreign
Office was useful. He thought that it would be advisable
for His Majesty's Government to indicate to the Bondholders'
Committee that they would be wise to expedite a settlement
of outstanding defaults on the basis offered by the Chinese
Government. The Belgians and Dutch had accepted a far less
satisfactory offer for the Lung-hai Railway default. The
attitude of the British Committee was also causing much
ill-feeling with the German creditors.
SIR FREDERICK had referred in his report to a proposal
that future railway development in China should be financed
by a further international loan in which Japan might well
take part, on condition that she was allowed orders for
materials commensurate with her participation. He did not
think that there was any immediate possibility of this but &
scheme might be practicable in a few months' time.
All was,
of course, dependent on political relations between China
and Japan; and the Japanese might make difficulty by
demanding more than their fair share. In any case, the
allocation of orders in each country in proportion to the
amount of its participation in the loan would require
amendment of the present understanding among the members of
the Consortium that all orders should be placed by open
tender. Mr. Orde said that the first step was to get rid
of this under standing; a procedure had been worked out and
it was agreed that the Foreign Office should write to Sir
Charles Addis urging this upon him.
SIR FREDERICK LEITH-ROSS referred to his conversations
with Mr. Horinouchi regarding the personnel of the Chinese
Maritime Customs. Mr. Horinouchi had agreed that, without
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