PUBLIC RECORD OFFICE

Reference :-

TTIC.O. 882

וון ווין וון וויזין

6 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

170

to enclose, for your information and record, a paraphrase of further telegraphic corre- spondence with yourself, His Britannic Majesty's Minister at Peking, and His Britannic Majesty's Consul-General at Canton, on the subjects of a proposed loan in connection with the Hankow-Canton Railway and of negotiations with the Viceroy of the Two Kwang for the completion of a Loan Agreement and of a Joint Working Agreement in connection with the proposed Canton-Kowloon Railway.

2. I also enclose a copy of a despatch from His Britannic Majesty's Consul- General at Canton, dated August 7th, 1905. Mr. Scott has unfortunately, not been able to come here as requested in my telegram of August 8th, and he has written to me on August 11th that the carrying out of the instructions contained in my tele- gram of August 9th is a far more difficult and delicate task than he had ever imagined. 3. I propose when I receive the text of the Redemption Loan Agreement (Canton-Hankow Railway) to communicate it confidentially to the Canton Viceroy as suggested in the final paragraph of Mr. Fraser's telegram of August 6th (see XXXIV.) in the hopes that this will facilitate negotiations for the completion of the Canton-Kowloon agreements.

I have, &c.,

24997/S.

Enclosure 1 in No. 130.

XXVIII.

SECRETARY OF STATE to GOVERNOR, Hong Kong. (July 30, 1905.)

M. NATHAN.

Your telegram of 15th and 16th of July. I consider it premature to attempt to do anything in the matter of the £3,000,000 loan until the result of the Hong Kong negotiations is known.

My telegram of 8th July. I presume there is no chance now of the money being required on the 2nd of August. If this is so, telegraph at once, as the Crown Agents must arrange for temporarily employing funds if they are not wanted then. Have you any

idea as to the probable outcome of negotiations? Bear in mind that it may not be possible to find the first instalment at a moment's notice.

XXIX.

GOVERNOR, Hong Kong, to His BRITANNIC MAJESTY'S MINISTER, Peking,

(July 30, 1905.)

It is great importance that the Crown Agents should know beforehand approxi- mate dates for the payment of instalments. I propose to telegraph to the Secretary of State as follows:-

"First instalment of £550,000 probably will be required about the 29th September and the second about the 22nd November, the money to be paid to the order of the Viceroy in New York."

Telegraph at once if you concur.

XXX.

HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong.

(July 31, 1905.).

Your telegram of yesterday. I concur. The dates for the instalments stated in the Hankow telegram of July 9th are September 29th and November 27th.

27102

171

XXXI.

GOVERNOR, Hong Kong, to SECRETARY OF STATE.

(July 31, 1905.)

;

Your telegram of July 29th. Negotiations are still proceeding. The first instal- ment of £550,000 will probably be required about September 29th and the second about November 27th, the money to be paid to the order of the Viceroy in New York.

XXXII.

GOVERNOR, Hong Kong, to His BRITANNIC Majesty's Minister, Peking. (August 5, 1905.)

Loan to Viceroy. Are negotiations progressing satisfactorily!

XXXIII.

GOVERNOR, Hong Kong, to Consul-GENERAL, Canton. (August 5, 1905.)

Have you received any further communication from the Viceroy with reference to the railway! Are you taking any steps to have the agreements translated!

:

XXXIV.

HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong. (August 7, 1905.)

(No. 1.)

Following from Consul, Hankow, dated August 6th:—

"Foreign Office telegram, June 27th (July 27?). I saw the Viceroy last night. He says that a preliminary contract for the resumption of the railway concession was signed by the attorneys of the Chinese Minister and Morgan, that the King of the Belgians has been trying to prevent the completion of the final contract, that the Chinese Minister has impressed on Morgan the necessity for fulfilling his contract, and that our loan agreement will not, of course, be signed unless telegraphic news (which is expected in a few days) comes of the signature of the final contract.

Hong Kong telegram, July 25th. Vicaroy suggested that a written assurance of friendly co-operation be obtained direct from the Canton Viceroy, without whose consent Sheng cannot make final agreements. His Excellency hears that the Canton Viceroy will not oppose the strong local party which is in favour of the Kwang Tung section being built with Chinese capital. He himself could not well give an opinion unless asked by the Chinese Foreign Office, Sheng, or the Canton Viceroy. He added that Sheng had no general appointment as the Director-General of Railways, but was authorised ad hoc in each

case.

"Hong Kong telegram of July 24th. Viceroy promised me a letter stating assurances under the conditions of loan. He begged me to tell you that he will have to beware of giving his enemies pretext for an accusation that the Hankow-Canton Railway recovered from one foreign syndicate has been transferred by him to another, but that he thoroughly appreciates our support and wishes to obtain English assist- ance for the line south as well as for his part of the Szechuen-Hupei Railway, though the former province insists on not inviting any foreign

aid.

18885

YAPage 601

172

"Viceroy was informed that the English text of the Loan Agree- ment had been posted to you on July 25th, and he asked me to make out the Chinese text and send it to him as soon as you and the Governor, Hong Kong, passed it.

I have the honour to suggest that the text might be communicated confidentially to the Canton Viceroy by Hong Kong, to whom I might send a copy and translation of the Viceroy's promised letter at the same time as it is sent you."

Telegram follows:-

"I am numbering my telegrams from to-day for convenience, of reference."

XXXV.

HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong.

(No. 2.)

My telegram No. 1.

(August 7, 1905.)

I

First paragraph Fraser's telegram has been telegraphed to Foreign Office. Second paragraph. Wuchang Viceroy's suggestion seems good. If you agree, suggest your communicating it to His Britannic Majesty's Consul General at Canton to whom I am telegraphing to-day.

Last paragraph. English text referred to goes to you by post to-day. I am in- structing Fraser to send Chinese of this and copy and translation of Wuchang Viceroy's promised letter to you. I see no present objection to communicating the Chinese of Loan Agreement to the Canton Viceroy, but before doing so you may wish to consult His Majesty's Consul-General at Canton.

173

XXXVIII.

GOVERNOR, Hong Kong, to CONSUL-GENERAL, Canton.

(August 9, 1905.)

Proceed to obtain the assurance of the Viceroy in writing that he will give his friendly co-operation to secure the early completion of the Loan Agreement for the Canton-Kowloon Railway with the British and Chinese Corporation on the lines of the preliminary Agreement entered into by them with Sheng in 1899 and of the Joint Working Agreement on the lines of the précis already furnished to him by you.

XXXIX.

HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong.

(No. 4.)

(August 11, 1905.)

My telegram No. 2. The following telegram has been received from Hankow, dated yesterday:—

'Copies and translations of the Viceroy's two letters will be sent by post to-

day to you and to the Governor of Hong Kong

*

The Viceroy's letter mentioned only the Canton-Hankow Rail- way; shall I have the scope of the assurance widened after he has seen the draft Agreement which will go to him to-day?'

To the second paragraph of the above I have replied as follows:-

-

Yes. You should obtain the assurance mentioned in the third paragraph of your telegram of the 20th June which the Governor of Hong Kong has agreed to accept."

PUBLIC RECORD OFFICE

Reference :-

IPLIC.O. 882

6

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

XXXVI.

HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong.

(August 7, 1905.) (No. 3.)

Your telegram of August 5th was communicated to Hankow. Fraser replied that the negotiations have been delayed for reason given in my telegram No. 1, and also by a misunderstanding between the Viceroy and his Private Secretary. He adds, "Viceroy said he had considered the translation of the form of the assurances (which was sent in English as an unofficial suggestion) and his note thereupon would be sent me to-night. I did not forward copy pending his reply. Viceroy, now he has heard Canton Viceroy's message, prefers not to give his views which he hinted were to keep the two sections independent as he had been told was the practice on the Continent. When I pressed he said that he would prefer to leave the matter to those on the spot unless and until they asked for his opinion."

XXXVII.

GOVERNOR, Hong Kong, to Consul-GENERAL, Canton. (August 8, 1905.)

With reference to your despatch of August 7th it would assist me very greatly if you could come here for a discussion of recent telegrams from Peking. It will give me much pleasure if you will stay with me.

XL.

HIB BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong, (August 11, 1905.)

(No. 5.)

The following telegram was sent to Hankow on August 7th:—

"Confidential.

The Minister for the United States yesterday volunteered the information that he had strongly urged his Government to prevent the proposed resale of the railway concession by Mr. Morgan to the Chinese and seemed sanguine of success. I have not said anything to him about our negotiations with the Wuchang Viceroy."

The following telegram, dated August 10th has been received from Hankow:-

"Railway resumption. The Viceroy at Wuchang sent his Secretary last night to say that Mr. Morgan had returned to New York, but on the plea of business proposed to adjourn the discussion of the final agreement until the 29th August. The Viceroy had telegraphed to the Chinese Minister to tell Mr. Morgan that the postponement could only be for a few days and that if he went back on his promise the Viceroy would declare that the concession had lapsed and would proceed with the rail- way without any further consultation. The Secretary assured me that the preliminary agreement, of which he had seen the text, was an uncon- ditional promise to sell the concession at a fixed price and that it was signed by Messrs. Foster and Taft, the latter, who was at first antagonistic to the re-sale, having been persuaded by the former.

"The Hong Kong and Shanghai Banking Corporation volunteered the information that the United States were objecting to China bor- rowing money to buy back the concession.

"I told this and the purport of your telegram of the 7th August to the

Secretary."

Share This Page