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PUBLIC RECORD OFFICE

Reference :-

TLC.O. 882

6

PUBLIC RECORD OFFICE, LONDON

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

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Viceroy begs that it may be paid as soon as possible, as it carries five per cent. interest, and the resumption dates from its payment, which will be made by the 6th of November. What date shall I insert in the agreement, which, with your approval, may be executed either on the 5th of September, or on the 6th of September?

Your request regarding the Canton-Kowloon Railway Agreement has been sent to-day to the Viceroy through his secretary, who is sure that the Viceroy will lay stress on your kindness in helping him.

The Viceroy suggested yesterday that it would be better for you to negotiate with the Canton Viceroy rather than with Sheng.

I have repeated this telegram to His Britannic Majesty's Minister, Peking.- FRASER.

LXI.

HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Hankow, to GOVERNOR, Hong Kong. (Despatched 7.5 p.m.: Received 9.50 a.m.)

No. 3. Hupei section of Szechuen-Hankow Railway. The German Bank tenders for the loan £2,000,000 to be guaranteed by the Chinese Government and be secured on the Likin revenues of Hupei. Term, 20 years; the capital to be repaid in ten instalments beginning with the eleventh year. The price of issue, if the interest be five per cent., to be 92; if four and a-half per cent., 88. The German The Viceroy inspector of construction to be paid by the Chinese Government. would prefer to borrow from the British, but their offer as to the price of issue must be considerably more favourable, as the Germans say that their terms might be somewhat improved. Should we lend, half the engineers would be British and we, instead of the Germans, could have first option as to the materials bought abroad. The principal might be repayable from the sixth year.

I have repeated this to Peking.—FRASER.

(31876/S)

LXII.

GOVERNOR, Hong Kong, to SECRETARY OF STATE. (Dated September 5, 1905.)

I am being pressed from Hankow to authorise the immediate signature of the Redemption Loan Agreement, and to arrange for the immediate payment of the first instalment. Please signify at once approval which I asked for yesterday, and say whether payment can be made in New York on September 6th, and if not what is the earliest possible date. Also what is the earliest convenient date for the Crown Agents to pay the balance of the loan of £1,100,000.

The signature of agreement is of immediate importance, as it gives preference inter alia to British capital, engineers, and material for the Hupei section of the line to Szechuen, for which the Germans have made a favourable tender.

The immediate payment of the money in New York is of importance, as other- wise it is feared that the Americans will cancel the Redemption Agreement.— NATHAN.

LXIII.

GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Hankow. (Dated September 5, 1905.)

With reference to your telegrams, Nos. 2 and 3, I have telegraphed to the Secretary of State for the Colonies as follows:-

(Telegram No LXII. repeated.)

(31876/S.)

LXIV.

SECRETARY OF STATE to GOVERNOR, Hong Kong.

(Despatched 4.55 p.m., September 5, 1905: Received 5 a.m., September 6, 1905.) Matter most urgent. Your telegrams of 4th and 5th September. I gather that Imperial Decree has been issued, and that the Loan Agreement in a form satisfactory to you is to be signed before the payment is made. This being so, I approve of your proposal, and if I receive a definite request from you by telegraph I will arrange that the Crown Agents telegraph to-morrow to the Chinese Minister at. New York the equivalent of 2,090,806 gold dollars.

*(Four groups of figures undecypherable.)

Earliest date at which the balance can be remitted; probably in about a week or ten days. It will be of assistance to the Crown Agents if you can name a specific date.

Of course all the expenses of remitting will be added to the amount of the loan repayable by the Viceroy.-LYTTELTON.

LXV.

GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Hankow. (Dated September 6, 1905.)

I have received the following telegram from the Secretary of State for the Colonies, dated 5th September :-

"Your telegrams of 4th and 5th September. I gather that Imperial Decree has been issued, and that the Loan Agreement in a form satisfactory to you is to be signed before the payment is made. This being so I approve of your proposal, and if I receive a definite request from you by telegraph I will arrange that the Crown Agents telegraph to-morrow to the Chinese Minister at New York the equiva- lent of 2,090,806 gold dollars."

If you are entirely satisfied as to the certainty of the issue of the Imperial Decree you can sign the agreement on my behalf, and on your telegraphing to me the word "signed," I will telegraph to the Secretary of State for the Colonies to arrange for payment to-day. You can insert the 6th of October as the date for the payment of balance, and you should make the Viceroy clearly understand that all the expenses of remitting will be repayable by him.-NATHAN.

LXVI.

HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Hankow, to GOVERNOR, Hong Kong. (Despatched 8.45 a.m., September 6, 1905: Received 5.30 p.m., September 6, 1905.) No. 4. His Britannic Majesty's Minister at Peking instructs me to telegraph to you these alterations in the Loan Agreement.

[

Page one. Paragraph one, cancel third line from "act" to "office." Paragraph two, add

the Viceroy has been imperially appointed to devise means for the resumption of the Canton-Hankow Railway, and the present loan has been reported to the throne and His Majesty the Emperor of China has issued decree approving of the agreement being made by the Viceroy Hu Kwang and the two Kwang pro- vinces, and the Governor of Hunan for themselves and their successors in office." Ninth line, after " funds" add "to redeem concession for the building thereof heretofore granted to an American Company." Eleventh line, after "assistance add "to buy back the shares in the said American Company." Twelfth line, cancel from" with a to" of the," and substitute " and so perform said special."

""

Article one. Second line, from Viceroy read "three provinces of Hupeh, Hunan, and Kwang Tung," and third line, add" the exact division of the responsibility for this sumn will be settled and announced later.”

• Afterwards corrected to read " Will inform you later as to."