2
the Legation has had no sort of statement which Mr. Carnegie could begin to treat as an explanation of what, on the face of it, is a serious breach of faith. Cannot you induce the Prince to send a reply which will meet the case?
Mr. Tong. I should prefer Mr. Carnegie to speak to Prince Ch'ing himself. I was a little "hot" (Tong's way of saying that he lost his temper) the other day when I spoke to him on this subject at the palace, and it would, I think, be better for Mr. Carnegie to speak himself. I have done what I could.
[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[35986]
No. 1.
183
[October 25.]
SECTION 1, CO
42969
IMECH
Reg 22 NOV OF
Sir Edward Grey to Sir J. Jordan. (No. 181.) (Telegraphic.) P.
Foreign Office, October 25, 1906. WITH reference to the Canton-Kowloon Railway negotiations, the Hong Kong and Shanghae Bank state that the only question outstanding now is the rate of exchange for the service of the loan, and that they have also been informed that
you do not consider it worth while to fight for this point. They say that they cannot give way, as to admit the Chinese contention would, in their opinion, create a most injurious precedent. They are communicating by telegraph with Bland to the effect that he may offer the Chinese Government the option to settle the rate of exchange at any time within six months prior to the date upon which each instalment is payable. This is as much as the Corporation can be expected to concede. You may give the proposal your support.
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