PUBLIC RECORD OFFICE
Reference :-
C.O. 882
6
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-| COPYRIGHT PHOTOGRAPH—NOT TO
PUBLIC RECORD OFFICE, LONDON
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Agreements by His Excellency's telegram to the Wai-wu-pu has no foundation in fact. Warn His Excellency strongly against accepting politeness from Sheng unreservedly. Sheng has difficulties with the British and Chinese Corporation because the Corporation cannot trust him to be disinterested or commonly honest. I consider the Corpora- tion quite justified, because I have myself detected Sheng recently in a flagrant act of bad faith. Repeat this telegram to Hong Kong."
XLV.
HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong. (August 20, 1905.)
(No. 7.)
Following telegrams received from Hankow, dated August 18th :-
"The Viceroy, Wuchang, being too unwell to see me sent his Private Secretary to say that in consequence of the United States Minister having tele- graphed to his Government that the Chinese Government did not really desire to cancel the China Development Company's concession, the Viceroy telegraphed to the Throne his proposed action including the loan from us, and a Decree was issued approving and bidding the Wai-wu-pu take note. Thereupon the Chinese Minister told the Presi- dent of the Republic that China was resolved to resume the concession but would pay the agreed compensation; there could be no question of not carrying out the preliminary contract mentioned in my telegram of August 10th. The Viceroy expects no further opposition." "Canton-Kowloon Railway. The Private Secretary said that the Canton Viceroy's support was indispensable, and he added, in confidence, that Chang did not like the arrangements proposed in the summary but would not oppose them out of friendship for us. According to him Sheng had no right to sign any agreement affecting a Province without having obtained the assent of its high authorities, a step ordered by formal decree; the Canton Viceroy was the natural negotiator if Sheng proved unsatisfactory."
XLVI.
HIS BRITANNIC MAJESTY'S CONSUL-General, Canton, to GOVERNOR, Hong Kong. (August 22, 1905.)
The Viceroy holds to the telegram and repudiates the Agreement of 1899.
XLVII.
GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S MINISTER, Peking. (August 22, 1905.)
The following telegram received from His Britannic Majesty's Consul-General, Canton :-
"The Viceroy owns to the telegram and repudiates the Agreement of 1899." What action do you now propose ?
XLVIII.
HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong, (August 22, 1905.)
(No. 8.) Following from Hankow :-
August 22nd. The Viceroy replies through his Secretary that the Hankow- Canton Railway Construction Loan will be very big, that he cannot interfere as to Hunan and Kwang Tung general railway policy, and
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that another power has nearly arranged to finance the Hupei section of the Szechuen and Hankow line. A copy of translation of this letter will be sent to-day.
2. He has not mentioned the draft Agreement sent him on August 10th, and it looks as though His Excellency's pro-Japanese Secretary has induced him to keep diminishing the promise of the concomitant advantages on which our offer was based, on the supposition that we are resolved to keep the loan from going elsewhere.
3. It seems doubtful whether, in case we do not insist on our modified terms
as a sine qua non, even the limited preference offered in his letter of August 9th would be carried out in good faith.
4. I have prepared a telegram in his cypher reciting the concessions already made at his request, giving my own opinion that if all his objections to the moderate terms had been made at first, the negotiations might not have continued, and stating that His Excellency's latest objection is being sent you. May I send it?
5. In order to show that I have no reason to think our side cannot still reconsider the question of the loan, and that his letter may have serious effect, I am telling his Secretary that I am going away to-night for a week, as I do not expect instructions sooner.
I have replied as follows:-
No. 50. August 22nd. Your telegram, No. 50.
1. The Viceroy, I consider, can give assurances in regard to Hunan and Hupei general railway construction, and must persuade Canton Viceroy to give assurance regarding Kwang Tung.
2. The other Power he alludes to is evidently France. We cannot agree to his giving that Power any promise regarding Hupei section of Szechuen-Hankow line.
3. I approve of your sending him the telegram proposed in your fourth para- graph; you should hint to him that unless the Canton Viceroy abandons his opposition to the construction of the Canton-Kowloon Railway-up to our frontier by the British and Chinese Corporation and to the Joint Working Agreement for the Chinese and British sections, there is, in my opinion, considerable risk of his not getting the money he wants to pay off the Americans. The main inducement to Hong Kong to provide the funds is the prospect of the construction of the Canton- Kowloon line being assured.
4. My French colleague has evidently been telling the Wuchang Viceroy that we have agreed with the French Government to let them finance and construct the section from Chengtu to Tchang; you will have seen Reuter's telegrams about the proposed agreement with France, but I have reason to believe that the statements made are at least premature.
XLIX.
HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong. (Despatched 2 p.m.: Received 3.16 p.m., August 23, 1905.)
me
(No. 9.)
Your telegram of August 22nd. Consulate General telegraphed to August 21st, as follows:-
"Your telegram of 14th. During an interview to-day the Viceroy owned to the telegram. He declines to recognise and carry out the Agreement of the 7th June, 1899. He argues that the Agreement was never officially accepted by his predecessors; that the Agreement was the result of pressure, and is only preliminary; and that it is not suited to the present altered conditions of Chinese policy and public opinion."