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PUBLIC RECORD OFFICE

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PUBLIC RECORD OFFICE, LONDON

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Enclosure 2 in No. 193.

NOTES on an Interview with Mr. Wei, Secretary to the Viceroy of the Two Kwang, at Government House on November 27, 1905.

The Viceroy's Secretary came to see me this afternoon nominally re engineers for the survey of the Chinese section of the Canton-Kowloon Railway. I told him that the Chief Surveying Engineer had declined, for personal reasons, to stay on, but that he could be replaced and the Assistant Engineer could be retained if an arrange- ment could be made for the survey of the Chinese section under the Consulting Engineers, who were also the Consulting Engineers for the British and Chinese Cor- poration.

I then went on to explain the general position: that the British and Chinese Cor- poration had an Agreement with the Chinese Government to build the railway, that the British Government were bound to support the Corporation in obtaining the fulfilment of that Agreement, and if there were any details in it which the Viceroy did not like, he should negotiate with the Corporation for their modification. I also explained the necessity, for the sake of economy and efficiency, that the railway, when completed, should be worked under one administration in accordance with an Agree- ment to be made by the Viceroy with myself.

Mr. Wei said the Viceroy was now fully alive to the necessity for the railway, but wished to keep the Corporation out of it (adding that, for his part, he did not share the Viceroy's views, believing that the Corporation would deal fairly with China). He thought that, owing to the Viceroy's views, if the Corporation were not eliminated, there would be great delay in getting the railway, which both the Viceroy and myself agreed to be necessary, and with regard to which it must be immaterial to Hong Kong whether it was constructed by the Corporation or not. He referred to the good offices of this Government to Chang Chih Tung in connection with the redemption of the Canton-Hankow Railway, suggested that we might help the Viceroy to get rid of the Corporation, which could only have incurred very small expenditure in connection with the line hitherto, and hinted, by allusions to the Chinese difficulties in providing Chinese capital and engineers, at the Hong Kong Government assisting also in these matters.

I then laid stress on the duty of China to adhere to its engagements and again referred to the duty of the British Government to support the British and Chinese Corporation in getting their Agreement fulfilled. I pressed on him the desirability of the Viceroy negotiating with Mr. C. H. Ross, the representative of the British and Chinese Corporation, due here on the 30th instant, and said I would arrange for Mr. Ross to go to Canton if, after discussing the matter with the Viceroy, he would let me know, through the Consul General, that Mr. Ross's visit to Canton would be of service in pushing the matter. He said it was doubtful whether the Viceroy would wish to negotiate with Mr. Ross, but that he would see His Excellency on the subject.

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SIR,

(Secret.)

No. 194.

GOVERNOR SIR M. NATHAN to Mr. LYTTELTON.

(Received December 30, 1905.)

Government House, Hong Kong, December 1, 1905. In continuation of my secret despatch of the 3rd November* on the subject of loans by Hong Kong to the Viceroy at Wuchang in connection with the redemption of the Canton-Hankow Railway, I have the honour to enclose, for your information and record, a paraphrase of further telegraphic correspondence with yourself and His Majesty's Minister at Peking.

2. I regret the delay of five days in replying to your telegram of the 22nd Novem- ber (CXXXVI.), due, in the first instance, to my having only a vague knowledge, derived from the local newspapers, of the terms of the understanding with France on the subject of co-operation in China, and, secondly, to the necessity for consulting confidentially with one or two of the Unofficial Members of Council and with Sir

* No. 180.

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Ernest Satow before entertaining a proposal which was to take away from the advantages to be derived by British interests from this Colony's loan to the Viceroy at Wuchang.

3. With regard to the first of these causes of delay, though I do receive some of the confidential prints relating to China referred to in Sir Ernest Satow's telegram of the 23rd (CXXXVIII.), I am unable to trace the receipt of one dealing with the Anglo-French understanding. The issue of "The London and China Express," to which Sir Ernest referred me, gave, however, sufficient information on this point.

4. My first idea of buying off French opposition to a British loan for Canton- Hankow Railway construction was that, instead of placing the Canton-Hankow hire under the Agreement for Anglo-French co-operation in China, an Agreement might be made to co-operate with the French to get a railway constructed between Hang Kong and Canton, with a view to connecting Hong Kong with Indo-China. But local feeling in the Colony is against any foreign influence or interest in lines to Canton.

5. I then made to Sir Ernest Satow the suggestion contained in my telegram of 26th November (CXLI.) by which French interests in the Canton-Hankow line were to be limited to the supply of capital. You will see from Sir Ernest's telegram of the following day (CXLII.) that he did not concur in this and doubted whether French co-operation would assist us in obtaining the fulfilment of Chang Chih Tung's promise. In these circumstances I sent you my telegram stating that we should adhere to the terms of our Agreement with that Viceroy (CXLIII.).

6. I take this opportunity of acknowledging your secret despatch of the 12th October* covering a lettert of the 9th of that month from Sir E. E. Blake, dealing with the payments made by the Crown Agents for this Government on the 6th October last. I shall be obliged by your conveying to the Crown Agents my thanks for the very valuable assistance they have rendered in connection with the loan to the Viceroy at Wuchang.

I have; &c.,

M. NATHAN,

Enclosure in No. 194.

Governor.

PARAPHRASE of Telegraphic Correspondence with the Secretary of State and His Majesty's Minister at Peking. (41356.)

+

CXXXVI.

SECRETARY OF STATE to GOVERNOR, Hong Kong.

(Despatched 4.50 p.m., November 22, 1905; Received 7.30 a.m., November 23, 1905.) French Government have suggested that we should extend to the Canton-Hankow Railway the understanding regarding Anglo-French co-operation in China.

The Foreign Office think that it might be an advantage to adopt this course as it seems to be the only way of breaking the opposition of the Chinese Government to the construction of the railway.

Telegraph as soon as possible whether you see any objection to this proposal.

CXXXVII.

GOVERNOR, Hong Kong, to His BRITANNIC Majesty's MiniSTER, Peking. (Despatched 10.15 a.m., November 23, 1905.)

this

In a telegram from the Colonial Office reference is made to an understanding regarding Anglo-French co-operation in China. Please tell me the terms of arrangement or where I shall find the text.

• L.F.

↑ No. 145.

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