384
"18. If the money market is upset by war or serious political troubles in China or abroad, the issues of the loan can be postponed for
months. "19. In case of war or famine or trouble, troops, food, &c., &c., shall have priority of conveyance, and this at half price. This railway cannot be used for any purpose detrimental to China.
20. The capital can only be repaid after ten years from date of signature, either in a lump sum or in instalments after six months' notice, after which the interest of the Corporation in this railway ceases.
"21. The working arrangement after the meeting of the railheads shall be settled by deputies from the Viceroy and the Governor of Hong Kong, in accordance with international railway regulations.
"22. After signature, the Viceroy will ask for an Imperial Edict. If sanctioned, the Wai Wu Pu will inform the British Minister.
23. The agreement shall be drawn up in five English and five Chinese copies, one of each to be handed to the Viceroy, to the Wai Wu Pu, to the Board of Com- merce, to the British Minister, and to the Corporation. In case of dispute, the Chinese text shall rule."
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385
No. 252.
FOREIGN OFFICE to COLONIAL OFFICE.
(Received May 21, 1906.)
[See No. 267.]
The Under Secretary of State for Foreign Affairs presents his compliments
to the Under Secretary of State for the Colonies, and, by direction of the Secretary
of State, transmits herewith copies of the under-mentioned papers.
Foreign Office.
May 19, 1906.
REFERENCE TO PREVIOUS LETTER. Colonial Office, 16609, of May 12, 1906.*
PUBLIC RECORD OFFICE
C.O. 882
Reference :-
Enclosure 3 in No. 251.
Mr. J. O. P. BLAND to His Excellency Sir MATTHEW Nathan.
The British and Chinese Corporation, Limited,
DEAR SIR MATTHEW NATHAN,
Hong Kong, April 12, 1906. WITH reference to our conversation of this morning on the subject of the Canton Viceroy's latest proposals, I understand that you are of opinion that the Corporation would be well advised to accept, as far as possible, an arrangement for the Canton-Kowloon Railway on the lines of the Northern Railway Loan. At the same time recognising that the latter eliminates the principle of control, you would be prepared to modify the present draft working agreement and, in that case, you would expect that the Corporation should stipulate that, simultaneously with its final agreement with the Corporation, the Chinese Government should make with the Hong Kong Government a working agreement calculated to safeguard the interests and rights of the Colony.
It will be my first duty at Peking to ascertain the views of His Britannic Majesty's Minister, and the amount of support which the Corporation may expect to receive in adhering to the terms under the existing arrangements; if the Corpora- tion is advised to abandon its rights in some measure so as to meet the views of the Canton Viceroy, it is possible that the Kowloon Agreement may be to some extent modified. If this were done, however, the Corporation's position in regard to other outstanding concessions would be so materially prejudiced, that the matter is one of the utmost importance; if some reasonable solution of the difficulty can be found, I have no doubt that the Board will do its utmost to meet the views of the Hong Kong Government and of the Minister. On the other hand, if the Board were advised or considered it essential, in the interests of its shareholders, to adhere to the concessions as they stand, the support of the Hong Kong Government would be essential to conclude the Kowloon Agreement with the working agreement on that basis.
If the Board were hereafter in a position which made it advisable to consent to waiving any of its more important rights, it would, of course, be difficult to insist upon any joint working conditions unacceptable to the Chinese Government, or to make those conditions an essential part of the Corporation's negotiations.
Believe me, &c.,
DESCRIPTION OF ENCLOSURES.
Name and Date.
Subject.
Paraphrases of telegrams-
Proposed railway from Canton to Whampoa.
To Mr. Carnegie, No. 95 of May 16. From Mr. Carnegie, No. 107 of May 17.
7
Enclosure 1 in No. 252.
FOREIGN OFFICE to Mr. CARNEGIE, No. 95, May 16, 1906.
(Paraphrase.)
TELEGRAM.
With reference to the telegram relative to the Railway to Whampoa, received from the Governor of Hongkong, you should represent to the Chinese Government that the construction of the Railway would constitute a breach of the Canton- Kowloon Preliminary Agreement, for the reason stated in the Governor's telegram, and that the Viceroy should at once be instructed that the scheme must be abandoned, if the report is correct.
Enclosure 2 in No. 252.
Mr. CARNEGIE, Peking, to Sir E. Grey, No. 107, May 17, 1908. TELEGRAM.
(Paraphrase.)
With reference to your telegram, No. 95, of May 16th, relative to the Canton Whampoa Railway, on May 12th, on receipt of telegram from the Government of Hongkong, I made representations to the Chinese Government in the sense of your telegram, and informed the Governor of the action I had taken.
19657
No. 253.
His Excellency
Sir Matthew Nathan, K.C.M.G.,
Government House,
Hong Kong
J. O. P. BLAND.
(Confidential.)
FOREIGN OFFICE to COLONIAL OFFICE. (Received June 1, 1906.)
[See No. 255.]
The Under-Secretary of State for Foreign Affairs presents his compliments to
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• No. 249.
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PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO