PUBLIC RECORD OFFICE
Reference :-
TRILEC.O. 882
6
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE COPYRIGHT PHOTOGRAPH-NOT TO BE REPRODUCED PHOTOGRAPHIC-
246
subsequent telegraphic correspondence with yourself, His Britannic Majesty's Minister at Peking, and His Britannic Majesty's Consul-General at Hankow.
2. I also enclose a copy of a private note from Mr. Fraser, dated the 11th instant, which arrived after the receipt this morning of your telegram of yesterday (CXIX.), and before I sent my telegram in reply (CXX).
3. This reply was based on the statement with regard to the opium revenue contained in Mr. Fraser's letter, and my desire, for reasons I have already explained to you, to get the American Company's bonde paid off, if possible, without the further intervention of this Government.
4. Mr. Fraser's telegram of to-day's date (CXXIII), which I have just received must have crossed the one last sent to him (CXXII).
5. I think it right to inform you that since it became necessary to communi- cate the original loan agreement with the Viceroy Chang Chih Tung on the 9th instant to the Executive Council I have considered it advisable to discuss each stage of the further negotiations not only with the Colonial Secretary, but also with Sir Paul Chater, Senior Unofficial Member of the Council, with whose assistance I have no doubt I can carry the Unofficial members of both Councils with me should it become, and when it becomes, necessary to make a further communication to them. 6. I take this opportunity of acknowledging your secret despatch of the 22nd of September,* enclosing a paraphrase of your cypher telegram of the 20th of Sep- tember, and copies of correspondence with the Crown Agents with regard to the loan of £1,100,000.
I have, &c.,
Enclosure 1 in No. 170.
M. NATHAN,
Governor
PARAPHRASE of telegraphic correspondence between the Secretary of State, His Britannic Majesty's Minister, Peking, His Britannic Majesty's Consul- General, Hankow, and Governor, Hong Kong.
(36517.)
CXIX,
From SECRETARY OF STATE to GOVERNOR, Hong Kong, (Despatched 6.50 p.m., October 19, 1905; received 7.36 a.m., October 20, 1905.)
Your telegram, 13th October. Corporation willing to raise the amount at five per cent. on the following conditions:-
1.
A guarantee from the Hong Kong or British Government on the same terms as the Hong Kong Loan.
way.
2. Central Railways to issue loan for the Hupei section of the Szechuan Rail-
3. A private understanding, to be recognized by the British Government, that the Corporation will be employed to raise the money for the Canton-Hankow Rail- way at five per cent. commission. I understand that the Corporation will not make this offer pending the receipt of your views.
A guarantee or recognition is out of the question, and the other terms seem to me to be objectionable in view of the conditions of your loan.
The Corporation has been informed that their offer is being transmitted to you, but that I do not regard it favourably.-LYTTELTON.
(37374.)
CXX.
From GOVERNOR, Hong Kong, to SECRETARy of State. (Despatched 1.30 p.m., October 20, 1905.)
Your telegram of October the 19th. As I am informed that the security of the opium revenues is ample for the additional loan as well as for ours I see no objection to the Corporation arranging with the Viceroy, if they can do so, for an additional loan on this security on the conditions that they propose as regards the Hupei- Szechuan and Canton-Hankow Railways, but I agree with you that neither the
• No. 137.
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British nor the Hong Kong Governments should give a guarantee or recognition.—. NATHAN.
CXXI.
•
From GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S MINISTER, Peking. (Despatched 12.30 p.m., October 20, 1905.)
My telegram of the 13th of October. I have received the following telegram from the Secretary of State, dated yesterday:—
(Telegram CXIX. repeated.)
I have replied this morning as follows:—
(Telegram CXX. repeated.)
I have repeated this to His Britannic Majesty's Consul-General at Hankow.— NATHAN.
CXXII.
From GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Hankow. (Despatched 12.50 p.m., October 20, 1905.)
Your telegram, No. 13. I have received the following telegram from the Secre- tary of State, dated yesterday:-
(Telegram CXIX. repeated.)
I have replied this morning as follows:-
(Telegram CXX. repeated.)
I have repeated this to His Britannic Majesty's Minister at Peking.-Nathan.
CXXIII.
From HIS BRITannic Majesty's Consul-General, Hankow, to GOVERNOR, Hong Kong.
(Despatched 11 a.m., October 20, 1905; received 12.55 p.m., October 20, 1905.)
I have sent the following telegram to His Britannic Majesty's Minister at Peking:-
'Your private telegram, No. 64. The Viceroy writes that the Chinese Minister at Washington has not sent the final agreement, but the whole rights of property and the documents of the American Company, were transferred at Canton and Shanghai on the 10th of October, and the supplementary loan is to meet 2 million dollars gold of Bonds with premium and interest thereupon; but if His Majesty's Government do not see their way to help him in the matter, these bonds can be left outstanding. FRASER.
Enclosure 2 in No. 170.
Mr. E. H. FRASER to GOVERNOR, Hong Kong.
DEAR SIR MATTHEW NATHAN,
Hankow, October 11, 1905. MANY thanks for your note of 2nd. I was sorry that I failed to give the Canton- Kowloon Railway a direct shove. Chang grows timid with age, and won't tackle the fiery young Ts'ên as he would have done five years ago. He is also cowed by the noisy supporters in Peking of the policy of no help from foreigners, and we shall have delay over the construction loans I fear.
Unless you desire it, I do not propose to urge a further Government loan to pay off the American Company's bonds amount about 24 million gold dollars for which he wants another £450,000. The British Chinese Corporation are inclined to include this sum in a railway loan for the short Hupei section of the Canton-Hankow line; but, of course, if you like I shall be ready to make an identical arrangement as to this. The opium revenues are very ample security, as they total at least three million taels, say £400,000 a year, and tend to increase. Chang wants to pay off the bonds, though they give no control over the railway, because the Belgians are trying to found on them a claim to have preference in building the line on the plea that