PUBLIC RECORD OFFICE
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minimuilm PLC.O. 882
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PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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On the 12th instant, after consulting Mr. Bland, I sent a note to the Wai-wu Pu requesting that a negotiator for the Canton-Kowloon Loan Agreement should be appointed here.
I also sent in another note at the same time requesting the appointment here of a negotiator to arrange Soochow-Hangchow-Ningpo Railway Final Agreement with Bland, as it was clearly the intention of the Governor to disregard the instruc- tions he had received from the Wai-wu Pu; and I suggested that a single negotiator should be appointed to discuss these two questions.
17893
(Secret.)
MY LORD,
No. 251.
GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN.
(Received May 19, 1906.)
[Copy to Foreign Offier, May 28, 1906. L.F.]
Government House, Hong Kong, April 20, 1906.
In continuation of my secret despatch of the 6th April* on the subject of negotiations for the completion of a loan agreement and of a joint working agree- ment in connection with the proposed Canton-Kowloon Railway, I have the honour to enclose, for your information and record, a paraphrase of further telegraphic correspondence with Your Lordship and His Majesty's Minister at Peking.
2. The first of these telegrams (XXVI) deals with the abortive attempt to push through the negotiations while Mr. Scott was still Consul-General at Canton. 3. Mr. Bland returned to Hong Kong on the 10th April, and told me on the following day that he had failed to get an interview with the Viceroy who, while he was in Canton, had left for Kwangsi on a tour of inspection in that province, and in Kwangtung, which was to last for about a month. He had, however, seen the Viceroy's deputies, who had put forward more complete proposals on behalf of the Viceroy than those that had been handed to Mr. Ross on March 29th (Enclosure 3 to my secret despatch of April 6th),* and had requested that if modifica- tions of these amended proposals were desired they should be obtained at Peking. I enclose a copy of Mr. Bland's letter covering a précis translation of the proposals, and saying that in pursuance with the wish of the Manager of the Hong Kong and Shanghai Banking Corporation and of Messrs. Jardine, Matheson and Company, he was proceeding to Peking on the following day.
4. The proposals differ very considerably from those of the draft agreed to in London by the Colonial Office and the British and Chinese Corporation, the most important differences being elimination of the Corporation's right to a share of the net profits on working and the restriction of their control to the appointment of an English Chief Engineer and English Auditor. It seemed to me that in spite of these differences the Viceroy's proposals, which recognised the preliminary agree- ment of 1899, were a great advance on anything he had previously put forward, and I expressed a hope that Mr. Bland, in a further interview I had with him on the 12th, that the Corporation would see their way to accept them as a basis on which to continue the negotiations which he had decided to transfer to Peking. At the same time I again laid stress on the necessity of a joint working agreement satis- factory to the Hong Kong Government being concluded simultaneously with the loan agreement.
5. After our interview Mr. Bland wrote me a letter, of which I enclose a copy, the last paragraph of which suggests that any considerable modification from the Corporation's draft loan agreement would absolve them from negotiating for the joint working of the completed railway. I then sent to Sir Ernest Satow telegram (XXVII).
6. On the 16th I explained the state of the railway question to Mr. R. W. Mansfield, C.M.G., who was staying with me, en route to Canton, to take over from to-day's date from Mr. J. Scott, I.S.O., the Consulate-General at Canton. suggested to Mr. Mansfield that it would assist matters if, while negotiations for the loan agreement were proceeding at Peking, he would press the provisions of the
* No. 246.
I
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joint working agreement on the Viceroy's Secretaries, and ascertain what the Viceroy had to say with regard to them.
7. The 17th produced a somewhat unexpected development in the shape of the receipt from Mr. Scott of an announcement of the Viceroy that he proposed to spend three or four days in Hong Kong with the object of arriving at an under- standing in railway and other matters by personal intercourse. The date originally suggested for his arrival was about the 2nd May, but this morning I have heard from Mr. Scott that the Viceroy will probably arrive about the 26th instant. In these circumstances I have thought it advisable to send Sir Ernest Satow telegram (XXVIII).
I have, &c.,
(10498.)
Enclosure 1 in No. 251.
M. NATHAN,
Governor.
Paraphrase of telegraphic correspondence. XXVI.
SECRETARY OF STATE to GOVERNOR, Hong Kong.
(Despatched 1.20 p.m., April 7, 1906. Received 2.13 a.m., April 8, 1906.)
Your telegram of March 26th. The Corporation have been advised of your views, but they are anxious that Bland should, if possible, negotiate. I am informed that their agents are in communication with you, and they have no doubt shown you the Corporation's telegram of March 27th.
XXVII.
ELGIN.
GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S MINISTER, Peking. (Despatched 5.30 p.m., April 12, 1906.)
Your telegram, March 29th. The railway negotiations are suspended by the departure of the Viceroy for Kwangsi. He has, through his deputies, after formally recognising the preliminary agreement, made definite proposals generally on the lines of the Northern Railways Loan Agreement, and he has asked that if any modifications of these proposals are required, they should be obtained in Peking. Mr. Bland leaves to-day for this purpose, and to ascertain Your Excellency's views. I am in favour of the Corporation accepting the proposals of the Viceroy, as a basis for further negotiations on the understanding that a joint working agreement satisfactory to the Government of Hong Kong must be concluded simultaneously with the loan agreement.
XXVIII.
NATHAN.
GOVERNOR, Hong Kong, to His BRITANNIC MAJESTY's Minister, Peking. (Despatched 1.20 p.m., April 20, 1906.)
My telegram of 12th April. The Viceroy of Canton has announced his intention of staying in Hong Kong for four days with the object of arriving at an understanding about railway and other matters, and is expected here about the 26th. Please telegraph to me before that date the result of your interview with Mr. Bland and of any negotiations that may have subsequently taken place with regard to the loan agreement.
As the Viceroy has transferred these negotiations to Peking, I propose to confine myself to pressing the adoption of the joint working agreement on the lines of the printed draft. Do you concur?
NATHAN.