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28691/S

(Secret.)

SIR,

154

No. 122.

FOREIGN OFFICE to COLONIAL OFFICE.

(Received August 11, 1905.)

[Copy to Governor, August 17, 1905, Serret. L.F.]

Foreign Office, August 10, 1905.

I AM directed by the Marquess of Lansdowne to transmit herewith, for the information of the Secretary of State for the Colonies, a copy of a despatch from

Sir C. Phipps, No. 86, Confidential, July 29, 1905.

To Sir C. Phipps, No. 65, very secret, August 2, 1905.

His Majesty's Minister at Brussels reporting on a recent interview between the King of the Belgians and Mr. Pierpont Morgan with regard to the intention of the Chinese Government to obtain a retrocession of the Canton-Hankow Railway Concession by the purchase of the American shares in the Concession.

Sir C. Phipps has anticipated in this despatch the enquiry addressed to him in Lord Lansdowne's despatch, No. 65, very secret, of the 2nd instant, copy of which is also enclosed.

I am, &c.,

E. GORST.

155

I also enclose an extract from the "Daily Chronicle of the 26th July, pur- porting to give an account of an interview on the subject between the King of the Belgians and Mr. Pierpoint Morgan, the representative of the American share- holders in the concern who are said to be anxious to sell their shares.

I shall be glad to know if you can furnish any information in regard to the question or can throw any light on the report published in the "Daily Chronicle."

I have, &c.,

LANSDOWNE.

Sir C. Phipps.

28843/S

No. 123.

FOREIGN OFFICE to COLONIAL OFFICE. (Received August 12, 1905.)

(Confidential.)

The Under Secretary of State for Foreign Affairs presents his compliments Sir E. Satow, Telegram, to the Under Secretary of State for the Colonies, and is No. 150, August 11, 1905. directed by the Secretary of State to transmit, for the information of Mr. Secretary Lyttelton, the accompanying copy of a telegram, as marked in the margin, relating to the Hankow-Canton Railway. Foreign Office,

August 11, 1905.

Enclosure 1 in No. 122.

Sir C. PHIPPS to the MARQUESS OF LANSDOWNE.

(No. 86. Confidential.)

MY LORD,

Brussels, July 29, 1905.

It will be remembered that very recently King Leopold paid a visit on his yacht to Dover, where he met Mr. Pierpont Morgan.

His Majesty, I understand, reproached Mr. Morgan very bitterly for having permitted the concession for the Canton-Hankow Railway to be taken back by the Chinese Government. To this Mr. Morgan replied that as a business transaction the operation had been an excellent one, as it had brought over £280,000 into the Royal coffers, for His Majesty's 2,400 shares, worth £20 each, had been paid off at £120 per share, thus involving a clear profit of over £280,000. In addition the out of pocket expenditure, very considerable, had been repaid.

Mr. Morgan had 3,000 shares himself.

I understand that Mr. Rockhill on being asked whether he would not intervene personally with the Chinese Government in favour of American capital, replied that he certainly would not do so as the “affaire était peu recommandable.”

The Marquess of Lansdowne, K.G.,

&c..

SIR,

&c.,

&c.

Enclosure 2 in No. 122.

I have, &c.,

CONSTANTINE PHIPPS

The MARQUESS OF LANSDOWNE to Sir C. PHIPPS.

(No. 65, very secret.)

Foreign Office, August 2, 1906.

I TRANSMIT herewith, for your confidential information, a copy of a telegram from His Majesty's Minister at Peking, stating that the Viceroy of Wuchang is anxious to obtain, if possible, from this country, a loan to enable him to buy out the American shareholders in the Hankow-Canton Railway Concession.

I have been in communication with the Secretary of State for the Colonies on the subject, and the Government of Hong Kong are at present determining the conditions on which the Colony will be prepared to make the advance.

(Paraphrase.)

Enclosure in No. 123.

Sir E. SATOW to the MARQUESS OF LANSDOWNE. TELEGRAM

No. 150. August 11, 1905. Hankow-Canton Railway. I have received the following telegram of yesterday's date from the Consular Officer at Hankow, respect- ing the proposed loan to the Viceroy of Wuchang for the purchase of the American shares in the Hankow-Canton Railway Concession.

Last night I received a message through the Viceroy of Wuchang's Secretary

to the effect that Mr. Morgan, on his return to New York, had proposed, on the plea of pressing business, to postpone till August 28th the discussion of the Final Agree-

ment.

The Chinese Minister at Washington has been requested by the Viceroy to inform Mr. Morgan that only a few days of postponement could be allowed, and that the Viceroy will declare the concession lapsed, and proceed with the railway without further consultation, if Mr. Morgan does not carry out his promise.

The Preliminary Agreement, of which the Secretary had seen the text, was, he assured me, signed by Messrs. Foster and Taft, and constituted an unconditional promise to sell the concession at a fixed price.

Mr. Taft was at first opposed to the resale, but was persuaded to sign by Mr. Foster.

The information was volunteered to me this morning by the Agent that the raising of a loan by China to buy back the concession was being opposed by the United States."

I am keeping the Governor of Hong Kong fully informed on the subject. Attached to 28843/S.

(Secret.)

SIR,

No. 124.

GOVERNOR SIR M. NATHAN to MR. LYTTELTON. (Received August 15, 1906.)

I HAVE the honour to enclose, for your information and record, a paraphrase

Government House, Hong Kong, July 15, 1905.

of telegraphic correspondence with yourself and His Britannic Majesty's Minister

18885

U 1

PUBLIC RECORD OFFICE

Reference :--

EPERIC.O. 882

6PUBLIC RECORD OFFICE, LONDON

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