39719
466
No. 301..
GOVERNOR SR M. NATHAN to THE EARL OF ELGIN. (Received 9.15 a.m., October 27, 1906.) TELEGRAM.
(Paraphrase.)
[Copy to Foreign Office, November 8, 1906. L.F.] [Answered by Nos. 305 and 307.]
Canton-Kowloon Railway. Referring to my telegram of 28th August,* the draft of the final loan agreement is now awaiting my concurrence. It embodies Article 17 of printed draft agreement, which is important. It provides for the junction and subsequent joint working of the two sections being negotiated by myself and the Viceroy, but it does not stipulate for these negotiations being com- menced within specified time. No reference is made to connection with Hankow- Canton line. I am not satisfied with these conditions, but I am assured by the British Minister that they are the best he can get, and, in these circumstances, I pro- pose to concur.
Telegraph whether you approve.
467
Chinese negotiators, proposes a fixed price of 964 for every £100 issued, or over 44 points below the actual issue price: Mr. Bland refuses a fixed price, and requires over 5 points below issue price. As regards commission Mr. Tong offers 5
per cent. on purchases of British materials only, with the understanding that British goods, after tender, shall have preference at equal prices: Mr. Bland wants 5 per cent. on all materials purchased outside of China. These two points of difference, however important to the financial interests of the Corporation, did not appear to me to be so vital to British interests as Mr. Bland evidently thought them, and from my know- ledge of Mr. Tong and his strong objection to Legation intervention in questions of bargaining, I felt certain that representations from me at this early stage of the negotiations, in order to obtain a better issue price or more commission, would not expedite matters, and might only increase his obstinacy.
I did not share Mr. Bland's hopeless view of the negotiations. I encouraged him to persevere, to insist patiently, and not to recoil from repeating the same arguments over and over again. As I had the honour to mention in my telegram, No. 165, of to-day to you, he cannot hope to conclude a matter of this kind with Chinese negotiators in a fortnight.
I have, &c.,
The Right Honourable
Sir E. Grey, Bart., M.P.,
&c., &c., &c.
LANCELOT D. CARNEGIE.
39996
No. 302.
FOREIGN OFFICE to COLONIAL OFFICE. (Received October 30, 1906.)
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.
Foreign Office,
October 29, 1906.
DESCRIPTION OF ENCLOSURE.
Name and Date.
Subject.
Mr. Carnegie, Peking, No. 370, September 5
Canton-Kowloon Railway,
་
40067
No. 303.
GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN. (Received 12.25 p.m., October 30, 1906.)
TELEGRAM.
(Paraphrase.)
[Copy to Foreign Office, November 8, 1906. L.F.] [Answered by Nos. 305 und 307.]
Canton-Kowloon Railway. My telegram of 27th October.* Minister presses. me to concur in the draft agreement so that it may be signed at meeting fixed for
the 31st. I shall concur unless you telegraph dissent at once.
40304
No. 304.
PUBLIC RECORD OFFICE
Reference :---
C.O. 882
(No. 370.)
Enclosure in No. 302.
SIR,
Peking, September 5, 1906. WITH reference to my despatch, No. 335, confidential, of August 8th, I have the honour to inform you that the negotiations in regard to the Canton-Kowloon Railway were commenced on August 23rd between Mr. J. O. P. Bland, the repre- sentative of the British and Chinese Corporation, and the following Chinese officials: the Grand Secretary Na-t'ung and His Excellecy T'ong Shoa yi, representing the Wai Wu Pu; and Kung Taotai with Mr. Hu, representing the Viceroy of Canton. Further meetings took place on August 29th and September 3rd, and Mr. Bland has furnished me with minutest of all these sittings, of which I have the honour to enclose copies for your information.
Mr. Bland came to see me this morning, said matters had come to a deadlock (a favourite expression of his) over the two questions of the issue price of the loan and the commission to the Corporation on material purchased, and appeared to think that Legation intervention was necessary.
From the minutes it seems that Mr. T'ong Shoayi, who is the spokesman of the
• Xo. 279.
† See Enclosure 2 in No. 295 and sub-enclosures to Enclosure 2 in No. 300.
FOREIGN OFFICE to COLONIAL OFFICE.
(Received November 1, 1906.)
[Answered November 8, by L.F. transmiting copies of Nos. 300, 301, 303 and 305.]
(Confidential.)
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 copies of the under-mentioned papers.
Foreign Office,
October 31, 1906.
REFERENCE TO PREVIOUS LETTER. Foreign Office, October 29, 1906.†
• No. 301.
18286
↑ No. 302.
SNJ
6
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
Name and Date.
468
DESCRIPTION OF ENCLOSURES.
Subject
Telegram to Sir J. Jordan, No. 181 of October 25
•
Canton-Kowloon Railway.
Telegram from Sir J. Jordan, No. 198 of October 27
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