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SIR,

174

Enclosure 2 in No. 130.

His Britannic Majesty's Consulate, Canton, August 7, 1905.

I HAVE the honour to acknowledge receipt of Your Excellency's telegram of the

5th instant.

In reply I beg to state that the only further communication from the Viceroy has been a message to say that he fully recognises that the Canton-Kowloon Railway must now be built, and that he was considering the necessary steps accordingly.

I learn that the Viceroy is endeavouring to have the construction of the Canton section undertaken by the Chinese themselves. But, so far, native capitalists have made no offer to raise any funds; nor judging by past experience, are they ever likely to do so.

As regards the other half of Your Excellency's telegram-translation of the draft agreements I explained to the Viceroy that the first draft was drawn up, mutatis mutandis, on the lines of the Shanghai-Nanking Railway Agreement, already known to him and accepted by his Government. For the other draft Agreement, I had a summary in Chinese communicated to the Viceroy which gave him a clear idea of its

terms.

In your telegram, Your Excellency inquires whether I am taking steps to translate the two drafts. When you handed me the papers in question, I undertook to explain the drafts to the Viceroy; and this I have done. But I carefully refrained from com- mitting myself to making a regular translation: and seeing the amount and nature of the work, Your Excellency will readily understand my hesitation. I regret that with my present staff I do not see my way, single-handed, to embark on this task of trans- lation.

His Excellency

Sir Matthew Nathan, K.C.M.G.,

&c., &c.,

I have, &c.,

JAMES SCOTT,

Consul-General.

32505/S

175

No. 132.

COLONIAL OFFICE to CROWN AGENTS. [Copy to Foreign Office, September 15, 1905. L.F.] [Answered by No. 133.]

(Confidential.)

GENTLEMEN,

Downing Street, September 11, 1905. WITH reference to your confidential letter of the 4th of July, and to the tele- graphic correspondence between the Secretary of State and the Governor of Hong Kong which has been communicated to you privately, I am directed by Mr. Secretary Lyttelton to state that he would be glad you could now make arrangements for the following payments to be made on October 6th:-

(a) £400,000 to the Hankow Branch of the Hong Kong and Shanghai Bank

in repayment of a temporary loan made to the Viceroy of Wuchang. (5) £700,000 to the Chinese Minister at New York.

2. A further communication will be addressed to you with regard to the legis- lative provision to be made in Hong Kong for the issue of a loan.

33085

(Confidential.)

No. 133.

I am, &c.,

C P. LUCAS.

PUBLIC RECORD OFFICE

Reference :-

'|། ། ། ། །

C.O. 882

32738/S

&c.,

Hong Kong.

No. 131.

FOREIGN OFFICE to COLONIAL OFFICE.

(Received September 12, 1905.)

(Confidential.)

The Under Secretary Paraphrase. Sir E. Satow, Telegram, No. 167, Sept. 10,

1905.

of State for Foreign Affairs presents his compliments to the Under Secretary of State for the Colonies, and' with reference to previous correspondence on the subject, is directed by the Secretary of State to transmit, for the information of Mr. Secretary Lyttelton, the accompanying paraphrase of a telegram, as marked in the margin, relating to the Hankow-Canton Railway. Foreign Office,

September 11, 1905.

Enclosure in No. 181.

Sir E. SATOW to the MARQUESS OF LANSDOWNE

(Sent 11.25 a.m., received 6 p.m., September 10, 1905.)

(Paraphrase.)

TELEGRAM.

No. 167. I have the honour to report that the Viceroy of Wuchang and Mr. E. Fraser, His Majesty's Consul-General at Hankow, yesterday signed the Agreement for a loan to enable the Chinese Government to repurchase from an American Syndi- cate the shares of the Hankow-Canton Railway Concession.

I have also to report the signature of the Final Agreement for the resumption: of the American Concession.

SIR,

CROWN AGENTS to COLONIAL OFFICE. (Received September 15, 1905.)

[Answered by No. 134.]

Whitehall Gardens, London, S.W., September 14, 1905. Hong Kong $1,100,000 Loan.

I HAVE the honour to acknowledge the receipt of your letter of the 11th instant, t marked confidential, and to say that we have made the necessary arrangements for the provision of the £1,100,000, which will be required by the Government of Hong Kong on the 6th of October, and we have already arranged for the remittance of £700,000 of the amount to New York.

2. As regards, however, the £400,000, which is required to be repaid to the Hong Kong and Shanghai Bank at Hankow, we shall be glad of further information before making the necessary arrangements, and if the information is not in the posses- sion of the Colonial Office I have to request that it may be telegraphed for at once from Hong Kong. The points on which we desire information are:-

(1) Does the Hong Kong and Shanghai Bank know of the arrangement between the Viceroy of Wuchang and the Government of Hong Kong!

(2) Is it necessary that the money should be paid in Hankow, or could the

payment be effected at Shanghai or Hong Kong?

3. In the event of question (1) being answered in the affirmative, the Hong Kong and Shanghai Bank is master of the position, and will be able to make very much its own terms as to the rate at which it will accept repayment.

4. As regards question (2), it is desirable, if possible, to avoid repayment at Hankow, which is a comparatively small and isolated place, to which the necessary taels" would have to be sent by water. The matter is also still further compli- cated by the fact that Shanghai and Hankow * taels" are not of the same value.

5. The only point in our favour is that it would probably be almost as incon- venient to the Hong Kong and Shanghai Bank to be paid at Hankow as it would be to us to make the payment there, and, therefore, we may be able to make terms with the Bank for payment elsewhere. It is not, however, desirable that we should approach the Bank until we are aware of our exact position in the matter.

• No. 113.

↑ No. 132.

9

PUBLIC RECORD OFFICE, LONDON

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