CO129-322 - Acting Governor May - 1904 [1-5] — Page 143

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hereat certain of the remaining American Stock-

holders stood their ground, and matters reached an impasse; the

Belgians thinking to improve matters by strenuous attempts to buy

out the whole of the American interest.

At this point Sheng, Director of Chinese Rail-

ways, cores forward with Art. 17 of the Supplemental Agreement,

and has but three days ago (January 20th.,1904), telegraphed to

Washington that either the "people of other nationality" must be

got rid of in the sphere of claimants to these contract 'rights',

or that he will cancel the contract. The point being, that pre-

viously, while the Russians could bring influence to bear on the

Chinese in the Belgian interest, Sheng and the Chinese Ambassador

at Washington could afford to evade the letter of the contract

sanctioned by Imperial Edict, but now that Russia is likely to

be occupied elsewhere for some time leaving the Belgians unbacked,

Sheng for his own sake must stand by the terms of the contract,

and see that the active control of the Railway remains with the

Americans. This happens to be awkward, as the Americans are not

tinua...

in a position to raise money for the construction of the line:

so that probably the contract will be declared void, and the

bonds of the original stock redeemed.

As matters were

going the Belgians (working for the Russians-through the king of

the Belgians, who had financed their Agents -) would probably

have got control of the whole bankow-Canton concession. A fairly

plain indication of this is forthcoming in the fact that 6 Belgian Officers, "specially selected by the king of the Belgians" for work on the Canton-Hankow Concession, arrive in Shanghai within the next few days. It appears therefore from the situa-

tion that here is the very opportunity required if the British Government desire to frustrate intrigues hostile to their inte-

rests in such an important region as is covered by this Railway Concession; and it would seem that a strong recommendation to

the

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