294
The French Government regard this arrangement favourably and enquire whether His Majesty's Government are cognizant of the Agreement arrived at and whether the arrangement has their approval.
In view of the correspondence which has already taken place between the Cor- poration and the French financiers, Sir E. Grey is disposed to inform the French Embassy that His Majesty's Government agree in principle to the proposal that a French financial group should co-operate in this enterprise, but that he would prefer to leave the arrangement of the details to the financiers of the two countries. Before, however, making any reply he would wish to be favoured with the observations of the Corporation on the subject.
Sir E. Grey notes that the allotment of shares mentioned by the French Embassy corresponds with the figures quoted in Monsieur Francqui's letter to Mr. Addis of the 11th ultimo, figures which, according to Mr. Addis's reply of the 16th, were in- accurate. He has also taken note of the further communication made by Mr. Addis to Monsieur Francqui on the 20th instant.
I am to state that Sir E. Grey would be glad to receive, for his confidential in- formation, some explanation of the manner in which the figures, given by Mr. Addis in his first-mentioned letter, have been arrived at. Subject to any further information which the Corporation may desire to furnish, Sir E. Grey considers that the claim advanced in Mr. Addis's letter to M. Francqui of December 20th with regard to the shares to be allotted to the British group should be maintained, and that the Cor- poration should adhere to the stipulation that the Chairman is to be appointed by this group and possess a casting vote.
The Secretary to
The British and Chinese Corporation.
2104
No. 197.
I am, &c.,
F. A. CAMPBELL.
FOREIGN OFFICE to COLONIAL OFFICE.
(Received January 19, 1906.)
[Copy to Governor, February 7, 1906. Secret. L.F.]
The Under-Secretary of State for Foreign Affairs presents his compliments
to the Under-Secretary of State for the Colonies, and, by direction of the Secretary
of State, transmits herewith copies of the under-mentioned papers.
Foreign Office,
January 19, 1906.
REFERENCE TO PREVIOUS LETTER. Foreign Office, January 18th.*
295
Enclosure in No. 197.
PAPERS COMMUNICATED BY MR. KESWICK TO FOREIGN OFFICE, DECEMBER 19, 1905. DEAR MR. Addis,
Banque De L'Indo-Chine, Paris, November 27, 1905.
I HAVE seen lately Mr. Francqui, and he has brought to my knowledge the conversation he had with you about the Hankow-Canton Railway.
I quite appreciate the reasons why it was not deemed advisable on your side to have this affair managed by the Chinese Central, and on account of this our friends do not insist on their first proposal.
But our group is quite prepared and very desirous to join the British and Chinese Corporation and co-operate with them for the Hankow-Canton, on the same basis as we did for the Szechuen business, and I trust you will see the way to bring an understanding between us on the matter.
I hear Mr. Franequi is about to go to London this week. He will certainly call on you. He is in a position to explain to you our views, as I had recently a long conversation with him on the matter.
Will you kindly let me know, after you have seen him, what are Mr. Keswick's ideas and yours about this affair? hope it will result in an agreement to our mutual benefit.
Believe me, &c.,
H. SIMON.
Hongkong and Shanghai Banking Corporation,
31, Lombard Street, London, E.C., MY DEAR MONSIEUR SIMON,
December, 5, 1905. I AM in receipt of your letter of the 27th November, informing me that the French group are desirous of co-operating with the British and Chinese Corpora- tion in negotiating for the Hankow-Canton Railway Loan on the same basis as they have done for Szechuen business, by which I understand is meant the formation of a company to be created for the purpose of dealing with the business, the capital of the Company to be subscribed and the Directors to be appointed by the British and Chinese Corporation and the French group jointly.
I believe that the British and Chinese Corporation Directors whom I have had an opportunity of sounding on the subject are unanimous in accepting the principle of Anglo-French co-operation, and that as regards the steps necessary to make our co-operation effective, they consider the basis you suggest is probably as good as could be desired. I may mention that Mr. Keswick, in interviews with our Foreign Office, has informed them that the British and Chinese Corporation approve of the co-operation of your group with the Corporation on the above basis.
It is understood that no objection is offered to the combination by the Foreign Offices of our respective countries. I would suggest, however, that any detailed arrangement had better be delayed until we have had time to hear from Hong Kong the views of the Colonial Government, to whom your proposals are being communi- cated.
Yours, &c.,
C. S. ADDIS.
DESCRIPTION OF ENCLOSURE.
Name and Date,
Bubject.
Papers communicated by Mr. Keswick, Dec-】
ember 19-
British and Chinese Corporation, Limited,
January 5th.
Το
British and Chinese Corporation, Limited, January 12th.
Hankow-Canton Railway,
• No. 196.
DEAR MR. ADDIS,
Brussels, December 11, 1905
WHEN I was in Paris Saturday last I saw Mr. Simon, who acquainted me with the contents of the letter you had written him. Mr. Simon confirmed to me that he is now in entire agreement with his group as to the organisation of the new company which will try to obtain the Hankow-Canton line, namely, that this Company shall eventually be formed on the same lines as the Chinese Central Railways, that 45 per cent of its shares shall be allotted to the French group, 45 per cent. to the British and Chinese Corporation or to such group as the latter may form, and 10 per cent. to the Compagnie Internationale d'Orient, representing the Belgian group in the concern.
Mr. Simon is to see Mr. Rouvier to-day, Monday, at 5 p.m., in view of laying the plan before him and obtaining his approval. If, as he hopes, he is successful in this, he will write to you to repeat his proposals in a definite form and to inform you that they have met with the approval of the French Government. It is essential that as soon as Mr. Simon's letter has reached you, it should be communicated to
PUBLIC RECORD OFFICE
Reference :-
TLC.O. 882
6
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
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