PUBLIC RECORD OFFICE

Reference :-

C.O. 882

6

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC

COPYRIGHT PHOTOGRAPH-NOT TO

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French Embassy suggested that the understanding in regard to Anglo-French financial co-operation in China should be extended to the Hankow-Canton line.

The question would, it was believed, be brought up at the general meeting of the Chinese Central Railways Limited, which was to take place on the following day, and as the Company represent the Anglo-French financial combination in the matter of Chinese railways, they would be in a favourable position to take up the Hankow-Canton railway business.

14

This view was shared by the French and by the majority of the English Directors, but met with opposition from Mr. Keswick, M.P., the Chairman of the British and Chinese Corporation, who represents the latter on the Board of the

Chinese Central Railways."

The French Embassy represented that the present occasion would be particularly suited to give effect to the principle of Anglo-French financial co-operation in China, and that, owing to the direct intervention of the Government of Hong Kong in the Hankow-Canton Railway Concession, His Majesty's Government are in a position to exercise effective influence on the British and Chinese Corporation in the matter. The understanding referred to by the French Embassy is represented by the Agreement concluded between the British and French groups of the Chinese Central Railways, Limited.

A copy of that Agreement* is enclosed, and I am to request that it may be eventually returned to this Office.

Mr. Keswick called by request at this Office on the 7th instant, and, in reply to enquiries, stated that the matter of the Hankow-Canton Concession had not been referred to at the meeting held with the French financiers on the 6th instant. He had, however, received a visit that day after the meeting above-mentioned from one or more of the French group, and again on November 7th, when the question had been discussed.

To

The French Directors had enquired of him whether an arrangement by which the French would be enabled to participate in the enterprise could be come to. this his answer had been that he could not say, as a decision on that point did not rest with him.

Mr. Keswick was then asked whether French participation in this matter, if considered desirable from a political or general point of view, would be objected to by the British and Chinese Corporation. He replied that there was no objection from a business point of view; on the contrary, he thought personally that such participation would be of advantage.

Lord Lansdowne is inclined to believe that, though it would not be advisable to consider the principle of Anglo-French financial co-operation embodied in the Chinese Central Railways Agreement as applying to all railways in China, as this might possibly prove inconvenient in the future, it might nevertheless be advan- tageous to admit French participation in regard to this particular line, which would appear to afford the only means of overcoming the opposition on the part of the Chinese Government to the construction of the line at all in the immediate future.

In view, however, of the interest of the Government of Hong Kong in the enter- prise, Lord Lansdowne would be glad, before coming to any definite decision in the matter, to learn the views of Mr. Secretary Lyttelton, and of the Governor of the Colony, on the question.

I am to suggest that Sir M. Nathan's views on the subject should be obtained by telegraph, as it is desirable that Lord Lansdowne should be in a position to reply without undue delay to the representation made by the French Government in the matter.

I am, &c.,

42110

No. 173.

F. A. CAMPBELL.

GOVERNOR SI M. NATHAN to MR. LYTTELTON.

(Paraphrase.)

(Received: 4.35 p.m., November 25, 1905.) TELEGRAM.

I will reply in a few days to your telegram of 22nd Novembert which requires

• Not printed.

↑ No. CXXXVI. in No. 194.

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much consideration. This Government's object is to secure that Hong Kong remains the port of any railway running to Canton and any foreign influence or interest in such a railway might militate against this. At the same time the completion of the Canton-Hankow Railway by the time that the Canton-Kowloon line is finished would be advantageous.

42102

No. 174.

FOREIGN OFFICE to COLONIAL OFFICE. (Received November 27, 1905.)

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 copy of the under-mentioned paper relative to China.

Foreign Office,

November 25, 1905.

Name and Date.

DESCRIPTION OF ENCLOSURE.

Sir E. Satow, No. 312, September 21, 1905

Subject.

114

The Canton-Kowloon Railway.

Enclosure in No. 174.

Sir E. SATOW to the Marquess of LanSDOWNE. (Received November 4.)

(No. 312.) MY LORD,

REFERRING to my despatch, No. 302, of the 11th September, I have the honour

Peking, September 21, 1905. - to inclose copies of further correspondence with the Wai-wu Pu on the subject of the Canton-Kowloon Railway.

The Wai-wu Pu, on the 16th September, replied to my note of the 11th Sep- tember, stating that the desire of the Chinese Notables and merchants to raise money and build the Canton section themselves, corresponds with the method of the Hong Kong Government in regard to the section in British territory, and that they had referred my note to the Viceroy of Canton for his consideration and report.

As the whole point of my previous observations—that there exists a preliminary contract which must be faithfully observed--was evaded in this reply, I wrote again to the Wai-wu Pu on the 19th September, reminding them that, whatever the plans of the Viceroy or the wishes of the Chinese Notables and merchants, His Majesty's Government looked to the Chinese Government to see that the terms of the pre- liminary Agreement of the 28th March, 1899, are properly fulfilled.

I also inclose a copy of a despatch and inclosures recently received from His Majesty's Consul-General at Canton, which will enable Your Lordship to appreciate the shifting methods of the Viceroy in this matter. Early in August His Excellency conveyed verbally to Mr. Scott an assurance of "friendly co-operation," but when asked to confirm this in writing, his real attitude of strong opposition to our pro posals, of which I had private information here, was disclosed openly and directly This attitude is of a piece with the wave of popular feeling which is passing over the country. It has become the mot d'ordre to endeavour to curtail all foreign privileges and concessions, and especially mining and railway concessions, by every means, and to resolutely block the granting of new ones. Wherever the concessions are in the preliminary stage, as in the case of the Canton-Kowloon Railway, the avowed method is either to annul them or to exhaust every artifice to delay; and the popular movement coinciding with the wishes of the official classes, it is evident that more than ordinary pressure will be required to bring the Chinese Government to a clear sense of their obligations in these matters. Mr. Brenan spent months negotiating an incomplete and unsatisfactory arrange. I should point out that ment in regard to the Shanghae-Nanking Railway, and that was before the present agitation arose.

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