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LIV.

GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Hankow.

(September 3, 1905.)

In the circumstances reported by you this Government will not insist that the loan to the Viceroy should be dependent on any assurance regarding the Canton- Kowloon Railway, but would be glad if the Viceroy would report to the Chinese Foreign Office the assistance we are giving him, and suggest to them that it deserves the facilitation of the Canton-Kowloon Railway negotiations. Regarding both this and the assurance the Viceroy has already given being extended to cover other lines than the Hankow-Canton Railway, I will leave it to you to make the best terms you can.-NATHAN.

197

LVIII.

GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S MINISTER, Peking. (Dated September 4, 1905.)

I have sent the following to His Britannic Majesty's Consul-General, Hankow:-

Telegram No. LVII. repeated.

-NATHAN.

(31778)

LIX.

PUBLIC RECORD OFFICE

Reference :-

TREEC.O. 882

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6

PUBLIC RECORD OFFICE, LONDON

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

LV.

GOVERNOR, Hong Kong, to His BRITANNIC MAJESTY'S MINISTER, Peking. (September 3, 1905.)

Following sent to Consul, Hankow :-

(Telegram No. LIV. repeated.)

--NATHAN,

LVI.

HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Hankow, to GOVERNOR, Hong Kong. (Despatched 8.40 p.m., September 3, 1905: Received 9.5 a.m., September 4, 1905.) No. 1. The Viceroy heard on the 31st ultimo that the opposition of the Govern- ment of the United States had been withdrawn, and that the first instalment of the loan is payable in New York on the 6th of September, and it amounts to 2,090,806 odd gold dollars. The date previously given was due to a muddle between the Chinese and Western calendars. The Viceroy has got the money in his Government Departments, but he is afraid that the local branches of the banks will be unable to transmit so large a sum in time. He begs that you will telegraph this amount to the credit of the Chinese Minister to the United States at New York, and if the Loan Agreement should fail he promises to refund the amount on demand, with interest. If you cannot arrange this he begs that you will telegraph to me at once. This afternoon, before the receipt of your telegram, I had a long conversation with the Viceroy. He says he accepts, with a few verbal alterations, my draft agreement. He still protests that the Viceroy at Canton will not brook any outside advice, and fears French pressure if he gives the guarantee as to railways in Kwang Tung. The Viceroy at Wuchang will give guarantee as to Hunan and Hupei, and wants tenders for the Hupei section of the Hankow-Szechuen Railway, in opposition_to the German tender, particulars of which I will telegraph to you separately. On the 15th of August the Viceroy received a telegram informing him that a decree had not been issued approving of his borrowing from England to pay America.

I have repeated this telegram to His Britannic Majesty's Minister at Peking.— FRASER.

LVII.

GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Hankow.

(Dated September 4, 1905.) .

I am unable to telegraph as requested by the Viceroy at Wuchang until the Loan Agreement has been signed, and until you hear from Peking confirming the issue of the Imperial Decree. When these two things are done will, subject to the Secretary of State's approval, for which I am telegraphing to-day, arrange for the first instalment being paid in New York to the Chinese Minister with as little delay as possible.

I have repeated this to His Britannic Majesty's Minister at Peking.-NATHAN.

GOVERNOR, Hong Kong, fo Secretary of State. (Dated September 4, 1905.)

The following is an extract from a telegram which I have received to-day from His Britannic Majesty's Consul-General, Hankow :—

[See from "The Viceroy” down to “at once" in LVI.]

The Loan Agreement, as drafted by His Britannic Majesty's Consul-General, Hankow, and accepted by the Viceroy at Wuchang, is satisfactory, and the Viceroy states that on the 15th of August be received a telegram informing him that a decree had been issued approving of his borrowing from England to pay off America. The Viceroy's letter of assurance gives a satisfactory preference to Great Britain regard- ing engineers, capital, and material for the Canton-Hankow line, and any future railways in Hunan and Hupei. I have not been able to obtain assurance regarding Canton-Kowloon Railway, in which the Wuchang Viceroy says it is impossible for him to interfere with the Canton Viceroy, and I have decided to leave the Canton- Kowloon Railway Agreements out of the question of the redemption.

In the foregoing circumstances I have telegraphed to the Consul-General at Hankow as follows:-

"I am unable to telegraph as requested by the Viceroy at Wuchang until the Loan Agreement has been signed, and until you hear from Peking confirming the issue of the Imperial Decree. When these two things are done, will, subject to the Secretary of State's approval, for which I am telegraphing to-day, arrange for the first instalment being paid in New York to the Chinese Minister with as little delay as possible.

"I have repeated this to His Britannic Majesty's Minister at Peking." Please telegraph approval and warn the Crown Agents to be ready.-NATHAN.

LX.

HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Hankow, to GoOVERNOR, Hong Kong. (Despatched 4.35 p.m., September 4, 1905: Received 9.50 a.m., September 5, 1905.)

No. 2. Referring to my telegram of yesterday *-

The Chinese Minister to the United States telegraphed to the Viceroy that the Resumption Agreement will be signed only on the receipt of the first instalment by China Development Company, and that any delay in the payment of it will be seized upon as an excuse for the cancellation of the agreement. He is trying to have the amount remitted through the Hong Kong and Shanghai Bank, in case you should be unable to help him, but he feels the matter to be of such importance that he would rather have it remitted twice over than not at all.

Your telegram of yesterday seems to remove any reason for delaying the signa- ture of the agreement, which the Viceroy has only altered so as to make Kwang Yung liable equally with his own provinces, and the instalments of the interest and the principal payable in Hong Kong at the sterling rate each date of payment. The assurance as to the Hunan, Hupei Railways being satisfactory, have I your per- mission to sign the agreement on behalf of your Government, date of first instalment being changed to the 6th of September! With regard to the second instalment, the