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I am to suggest that Sir E. Satow should be informed that this communication has been made to Sir M. Nathan, and that he should be instructed to furnish the latter with any further information that he may require.

22330/S

No. 106.

I am, &c.,

C. P. LUCAS.

FOREIGN OFFICE to COLONIAL OFFICE.

(Confidential.)

(Received June 28, 1905.)

[Answered by No. 109.]

The Under-Secretary of State for Foreign Affairs presents his compliments to the Under Secretary of State for the Colonies, and is directed by the Secretary of To Sir E. Satow, No. 102 of State to transmit, for the information of Mr. Secretary Lyttelton the accompanying copy of a telegram, as marked in the margin, relating to Chinese Railways.

June 27, 1905.

Foreign Office,

June 28, 1905.

141

Enclosure 1 in No. 107.

Sir E. SATOW, Peking, to the MARQUESS OF Lansdowne. (Sent 1.40 p.m., received 2.30 p.m., June 27, 1905.)

(Decypher.)

TELEGRAM.

No. 124. Following from Consular Officer at Canton to-day:-

"No. 58. Private. Following from the Viceroy's Secretary: Regarding the proposed loan, the first payment, which is about 2,000,000 dollars United States currency, is wanted towards the latter part of August. It is not yet certain whether the remainder is to be paid by instalments or not, but the entire sum is to be paid over about the middle of December next.

Viceroy desires an immediate definite reply whether loan can be negotiated on these terms or not, as delay may necessitate his taking other offers.

"

'In return for loan, although Viceroy does not want railway men- tioned in agreement, Consul-General thinks that we may demand written assurance from Wuchang and Canton Viceroys and Hunan Governor to us that in case foreign capital and engineers shall be needed within Hu Kuang and Tiang Kiang provinces for railway purposes, first option of supplying them or either of them shall be given to Great Britain.

"May Consul-General tell Viceroy that this is a necessary con- dition of loan?"

PUBLIC RECORD OFFICE

Reference :-

T+11C.O. 882

6 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO

(No. 102.) (Telegraphic.)

Enclosure in No. 106.

The MARQUESS OF LANSDOWNE to Sir E. SATOW.

Foreign Office, June 27, 1905, 9.30 p.m. Your telegrams Nos. 110 and 121 [of 7th and 18th June: Hankow-Canton line]. It has been suggested that Hong Kong might find it in her interest to advance money, and matter has been referred to Governor for expression of his views, with instruction to obtain from you any details he may require, but otherwise to observe absolute secrecy.

22447/S

SIR,

(Secret.)

No. 107.

FOREIGN OFFICE to COLONIAL OFFICE.

(Received June 29, 1905.)

[Answered by No. 109.]

Foreign Office, June 28, 1905. WITH reference to your letter marked secret of the 26th instant,* I am directed by the Marquess of Lansdowne to transmit to you, for the information of the Secre- tary of State for the Colonies, the accompanying copies of telegrams from His Majesty's Minister at Peking, containing further particulars respecting the dates of payment and the conditions of the proposed loan to the Viceroy at Canton.

It will be observed that His Majesty's Consul-General at Canton suggests that His Majesty's Government should require a written assurance from the Viceroys at Wuchang and Canton, and the Governor of Hunan that, in the event of foreign capital or engineers being needed for railway construction purposes in the Hu Kuang and Tiang Kiang provinces, this country should have priority of option with regard to supplying them or either of them to the Chinese Authorities.

Lord Lansdowne proposes, subject to Mr. Lyttelton's concurrence, to reply to this suggestion in the affirmative.

I am, &c.,

• No. 105.

F. A. CAMPBELL.

Enclosure 2 in No. 107.

Sir E. SATOW, Peking, to the MARQUESS OF Lansdowne, (Sent 1.40 p.m., received 12.30 p.m., June 27, 1905.)

(Decypher.)

TELEGRAM.

No. 123. My telegrams Nos. 110 and 121 of June 7 and 18. Following from Consular Officer at Hankow:

22664

"Viceroy explains alteration of the amount of the loan as due to the Canton

Viceroy's inability to provide a promised three million taels at once.

He presses for telegraphic promise that the money will be found, whereupon he will telegraph to the Chinese Minister at Washington to sign Agreement. He fears delay may cause hitch. Japanese Consul offers whatever is wanted on the Viceroy's terms."

No. 108.

THE BRITISH AND CHINESE CORPORATION, LIMITED, to COLONIAL

SIR,

OFFICE.

(Received June 30, 1905.)

[Copy to Governor, July 3, 1903. Confidential. L.F.]

[Answered by No. 111.]

CANTON-KOWLOON RAILWAY.

3, Lombard Street, London, E.C., June 30, 1905. UNDER date the 15th instant we were informed by the Foreign Office, in reply to a suggestion we had made, that Sir Ernest Satow considered that it would be inadvisable at the present time that he should urge the Chinese Government to empower the Viceroy at Canton to negotiate with our representative.

Under these circumstances it appears to us that until His Majesty's Minister at Peking sees his way to take some action, the presence in Peking of Mr. Ross,