This Document is the Property of His Britannic Majesty's Government.]
CHINA.
CONFIDENTIAL.
[26140]
No. 1.
736
[July 30.]
SECTION 8
C 0.
38281
RECE IP 17 00) 06
Mr. Carnegie to Sir Edward Grey.-(Received July 30.)
(No 146.) (Telegraphic.) P.
PLEASE see my telegram No. 145 of to-day's date: Canton-Kowloon Railway.
Peking, July 30, 1906. Final Agreement.
Instructions sent by British and Chinese Corporation to Mr. Bland are, I understand, still as stated in Governor of Hong Kong's despatch of the 6th April to the Earl of Elgin, marked Secret (Inclosure 7). I beg to refer you to the Confidential Print of the 24th May, section 2. The Viceroy's proposals in Inclosure 5 of the same despatch will doubtless form the basis of the Chinese counterdraft.
There is no concealment on the part of Bland that little importance is attached by the Corporation to the Kowloon line and much to the Soochow line, as far more profit would accrue to them by the construction of the latter.
Bland knows that, provided a joint working Agreement satisfactory to the Hong Kong Government is concluded simultaneously with the Loan Agreement, Sir M. Nathan favours acceptance by the Corporation of the Viceroy's proposals above mentioned as a basis for further negotiations, but his attitude convinces me that he will not make any effort to meet the wishes of the Hong Kong Government, and that, with the aim no doubt of securing more immediate support in regard to Soochow, he will continue his efforts to keep the two questions of Soochow and Kowloon together. Personally, I agree with Sir M. Nathan's view, and venture to suggest that the Corporation be informed that they must abandon the attitude shown in Inclosure 7 if an immediate deadlock in the negotiations here is to be avoided. In the present state of popular and official opinion on railway questions I feel convinced that the Chinese Government will only accept the Corporation's draft of the 16th February when compelled to do so by force.
I have repeated the above to Sir M. Nathan.
[2073 gg-8]
This Document is the Property of His Britannic Majesty's Government.]
CHINA.
CONFIDENTIAL.
[26140]
No. 1.
736
[July 30.]
SECTION 8
C 0.
38281
RECE IP 17 00) 06
Mr. Carnegie to Sir Edward Grey.-(Received July 30.)
(No 146.) (Telegraphic.) P.
PLEASE see my telegram No. 145 of to-day's date: Cantou-Kowloon Railway.
Peking, July 30, 1906. Final Agreement.
Instructions sent by British and Chinese Corporation to Mr. Bland are, I under- stand, still as stated in Governor of Hong Kong's despatch of the 6th April to the Earl of Elgin, marked Secret (Inclosure 7). I beg to refer you to the Confidential Print of the 24th May, section 2. The Viceroy's proposals in Inclosure 5 of the same despatch will doubtless form the basis of the Chinese counterdraft.
There is no concealment on the part of Bland that little importance is attached by the Corporation to the Kowloon line and much to the Soochow line, as far more profit would accrue to them by the construction of the latter.
Bland knows that, provided a joint working Agreement satisfactory to the Hong Kong Government is concluded simultaneously with the Loan Agreement, Sir M. Nathan favours acceptance by the Corporation of the Viceroy's proposals above mentioned as a basis for further negotiations, but his attitude convinces me that he will not make any effort to meet the wishes of the Hong Kong Government, and that, with the aim no doubt of securing more immediate support in regard to Soochow, he will continue his efforts to keep the two questions of Soochow and Kowloon together. Personally, I agree with Sir M. Nathan's view, and venture to suggest that the Corporation be informed that they must abandon the attitude shown in Inclosure 7 if an immediate deadlock in the negotiations here is to be avoided. In the present state of popular and official opinion on railway questions I feel convinced that the Chinese Government will only accept the Corporation's draft of the 16th February when compelled to do so by force.
I have repeated the above to Sir M. Nathan.
[2073 gg-8]
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