SIR,
(Translation.)
216
VICEROY, Chang, to Consul-General FRASER.
September 9, 1905. In view of your services in obtaining for me the present loan for the resumption of the Canton-Hankow Railway, and the very fair terms on which it has been arranged, I have the honour to give the following assurance which bind the Viceroys and Governors of Hupei, Hunan and Kuangtung and their successors in office who have powers to deal with railways.
As regards funds for the future construction of the Canton-Hankow Railway in case it is necessary to borrow abroad in addition to the amount China may herself provide, the first application shall be made to England, and if the British tender is as regards interest and issue-price equal to the tenders of other countries, British financiers shall have the first option of undertaking the business; if, in the above and other respects, the tenders of other countries are fairer and more favourable than England's, China will be free to choose the fairest and most favourable, and make other arrangements for borrowing.
If the funds for constructing the Canton-Hankow Railway have been borrowed from England, then, for the machinery and material required for that line, apart from what China has of her own making, if bought abroad British firms and works shall first be applied to, and if their tenders are of similar cost to those made by other countries firms and works, the British works shall have the first option of under- taking the orders. If the wares of other countries are excellent and the price moderate, China will be free to contract for purchase from the most suitable.
Beyond this, if within the jurisdiction of Hupei and Hunan there are other railway construction enterprises which likewise necessitate loans from abroad they shall all be dealt with on the system set forth above as applicable to the Canton- Hankow Railway Loans.
With regard to the engineers needed for the construction of the railways I declare that one half will be of the nation that lends the money, the other half will be Japanese. The work will be divided into sections for undertaking, and each nation will attend to its own business. China will retain control as regards all employés, selection of land, management of lines and running of cars; the engineers will only attend to the affairs of the requisite works within their own sections, and may not interfere in anything else.
I am communicating officially with the officers concerned.
A
Translated by E. H. FRASER.
I have, &c.,
Seal of Hu Kuang, Viceroy.
($3952.)
217
Enclosure in No. 149.
LXXXVI.
SECRETARY OF STATE to GOVERNOR, Hong Kong.
(Despatched 1.20 p.m., September 22, 1905; received 12.21 a.m., September 23, 1905.) With reference to my telegram of 11th of September. Arrangements have been made with the Hong Kong and Shanghai Bank to pay the £400,000 in London, where it will be placed to the credit of the branch at Shanghai, the latter being left to arrange with the branch at Hankow and the Viceroy any question of expense of remitting.
I am informed that German agents are also negotiating with the Viceroy and seeking concessions and offering loans of money.—LYTTILTON.
LXXXVII.
GOVERNOR, Hong Kong, to His Britannic MajesTY'S CONSUL-GENERAL, Hankow. (September 23, 1905.)
Following telegram received from Secretary of State for the Colonies:—
(Telegram LXXXVI. repeated.)
Have repeated to His Britannic Majesty's Minister Peking, whom you doubtless keeping informed of action of German agents.-NATHAN.
are
LXXXVIII.
GOVERNOR, Hong Kong, to His BRITANNIC MAJESTY'S MINISTER, Peking. (September 23, 1905.)
Following telegram received from Secretary of State for the Colonies:----
(Telegram LXXXVI. repeated.)
Have repeated to His Britannic Majesty's Consul-General, Hankow, who is doubt- less keeping you informed of action of German agents.--NATHAN.
37733
No. 149.
36884
No. 150.
SIR,
(Secret.)
GOVERNOR SIR M. NATHAN to MR. LYTTELTON.
(Received October 23, 1905.)
[Answered by I.F.F. transmitting copies of Nos. 158 and 165.]
Government House, Hong Kong, September 23, 1905. IN continuation of my secret despatch of yesterday's date* I have the honour 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 Hankow, on the subject of a proposed loan to the Viceroy at Wuchang in connection with the Canton-Hankow Railway.
I have, &c.,
M. NATHAN,
Governor.
GENTLEMEN,
COLONIAL OFFICE to CROWN AGENTS.
[Answered by No. 151.]
Downing Street, October 23, 1905.
I AM directed by Mr. Secretary Lyttelton to acknowledge the receipt of your letter of the 10th instant respecting the method of raising the Hong Kong loan to provide for the loan made by the Colonial Government to the Viceroy of Wuchang, and for the building of the Kowloon Railway.
From the enclosed copy of a telegramt from the Governor of the Colony you will see that an Ordinance has already been passed giving the necessary powers for raising the sum of £2,000,000 for these purposes under the provisions of Ordinance 1 of 1893.
Mr. Lyttelton does not think it advisable to repeal the Ordinance just passed, or to provide funds for these purposes by separate Ordinances. He considers that your views will be sufficiently met if an Amending Ordinance is passed, providing that
• No. 148.
18888
• No. 147.
† No. CXII, in No. 169.
1 K
PUBLIC RECORD OFFICE
Reference :-
HITTIC.O. 882
6
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH—NOT TO
218
notwithstanding anything contained in the Ordinance No. 1 of 1893, the money may be raised wholly or in part by debentures or inscribed stock.
I am to suggest that you should furnish this Department with the draft of such an Ordinance, which might also contain a provision to meet the point raised in the last paragraph of your letter. The draft would then be forwarded to the Governor with instructions to enact it, and transmit it home as soon as possible.
Mr. Lyttelton presumes that there will be no necessity to approach the Hong Kong and Shanghai Bank as suggested at the end of the Governor's telegram of the 18th October.t