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PROOF.

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18885-94

12

203

No.

FOREIGN OFFICE to COLONIAL OFFICE. (Received August 19, 1905.)

(Confidential.) The Under Secretary

Paraphrase. Sir E. Satow, No. 152, August 18, 1905.

ing copy of a telegram, Railway.

Foreign Office,

August 18, 1905.

of State for Foreign Affairs presents his compliments to Under Secretary of State for the Colonies, and is directed by the Secretary of State to transmit, for the information of Mr. Secretary Lyttelton, the accompany- as marked in the margin, relating to the Hankow-Canton

Enclosure in No.

Sir E. SATOW to the MARQUESS OF LANSDOWNE. (Received August 18.)

(No. 152. Secret.) (Telegraphic.) P.

Hankow-Canton Railway.

Peking, August 18, 1905.

An agent of German Bank was sent to Hankow to make offers to the Viceroy of Wuchang. His Excellency declined them, but appears to have given the agent details of the arrangement which he is negotiating with us. The Hong Kong and Shanghe Bank have been informed by the German Bank that this constitutes a viola- tion of their Agreement. I think the Germans must be aware of the suggestion made by the Colonial Office that the money for the Hong Kong Government's loan to the Viceroy should be advanced by the Hong Kong and Shangha Bank.

The French and Belgian Ministers are displaying much interest in our arrange- ment with the Viceroy of Wuchang, and are working to prevent it froin being concluded.

Chang has seen the Reuter's telegrams announcing the conclusion of the Agree- ment between Great Britain and France with regard to the Szechuan Railway. He has expressed to His Majesty's Consul-General at Hankow his great concern, the Chinese being strongly opposed to France's gaining a footing in Szechuan.