4
Excellency's being notified of the true position of M. Casenave, M. de la Batie ascribing his blunder to his writer.
Mr. Bland then handed me a Memorandum, which was embodied in a reply to the Viceroy (copy and translation iuclosed).
Shortly after, Mr. Bland returned to say that the Tuotai was at the bank waiting to take him across to see his Excellency Ch'ang, who insisted on my also being present.
We therefore called on his Excellency, to whom I handed my reply to his note, His Excellency read it carefully, and asked if Mr. Bland had any draft of his proposals to show him.
It was explained that no special terms had yet been drafted, but the general tenor of the Kowloon--Canton Agreement would be followed. The English text was given to him, and he was told that a correct Chinese version would be found in the Shangha "Hsin-wen Pao"; this his Secretary, Mr. Chan, had just seen.
Mr. Bland also hauded in his Memorandum on railway construction in China, with apologies for the inferiority of its Chinese translation. The Viceroy said all that was needed was clearness and freedom from humbug.
Mr. Bland then stated that while in Peking he had seen the President of the Board of Communications, who had assured him that, provided the Viceroy did not object, his Board would support the raising abroad of a construction loan for the Yueh-Han and other Hu-Kuang railways. Vice-President Tang Shao-yi held the same views.
Mr. Bland was proceeding to advocate a uniform system for all provincial railways, and the making of the whole Hankow-Cautou line one Government undertaking, when the Viceroy interposed that those were questions for the central authorities; all he could guarantec was that he was ready and anxious, so soon as the Board wrote or telegraphed that such a scheme would be acceptable, to memorialize the Throne for leave to borrow abroad for the building of Hupei's sections of the trunk lines south and west. He had been twice snubbed last year when he advocated this step, and he dared not move again unless assured of a favourable reception of his proposals.
Mr. Bland inquired whether Hunan could not be induced to come into line with Hupei; but his Excellency vehemently asserted that the Hunan gentry, with whom all control lay, would not listen to any argument on the subject, being in this and other matters obstinate, pig-headed, and unenlightened.
We suggested that a line only to Yochow would never pay. His Excellency agreed, and said he had hopes of being able to get Hunan to let Hupei continue the line to Changsha on the understanding that Hupei, and not foreigners, would be the lender. Possibly in course of time, if that line proved a benefit, the Hunanese, of whom the moneyed merchants would never supply the gentry with funds for railways, nor the needy gentry cede to the merchants the management of railways, might let Hupei continue the line to connect with Kuangtung. This was only a scheme of his own, however, which had not yet been broached.
The Viceroy mentioned that he would want to borrow 2,50,000, or, if the southern line went on to Changsha, 3,500,000, and his idea was to ask the same terms as to interest and redemption as in the case of the Lu-Han Railway.
As his Excellency was unwell and looked weary, we took our leave, the Viceroy repeating that, so soon as word came from Peking that all would be well, he would lay his proposal before the Throne; Mr. Bland might assure their Excellencies Chang Po-hsi and Tang Shao-yi that in Hupei there would be no opposition from any class whatever.
During the interview not a word was said as to M. Casenave and the French
banks.
5
Bland, having some business to discuss personally with me, and asking me to arrange a time to receive them. I have been for some days fully occupied with public affairs, and am besides not in a good state of health, and am unable to receive visitors. I wrote at the time to M. de la Batie, the French Consul, to tell these persons to interview the Hankow Tantai, who could in turn inform me. received the name "Bland" is, I take it, the same as the name "Bland" in the other In your note just note; but I quite fail to understand why he should desire to see me with regard to a loan in conjunction with the Director of the "Banque de l'Indo-Chine." What is his actual reason for coming to Hupei, and has the loan been sanctioned by the Board of Communications? I hope you will give me a full explanation; but to-morrow I really cannot receive visitors, and I must still ask Mr. Bland to first interview the Customs Taolai, and if there should be anything of very great importance to tell me, please ask him to delay his departure a day or two, when I will await the honour of a visit.
I have, &c.
Inclosure 7 in No. 1.
(Card of Chang Chih-tung.)
Consul-General Fraser to Viceroy Chang.
Your Excellency,
Hankow, December 11, 1906. IN reply to your note regarding Mr. Bland, I have the honour to transmit herewith, for your information, the following Memorandum drawn up by that gentleman :-
"It should be explained that, owing to a mistake committed by the writer (?) at the French Consulate, M. Casenave has been referred to as representing the 'Banque de l'Indo-Chine,' whereas, as a matter of fact, in the business which it is now proposed to discuss with his Excellency, he is acting with Mr. Bland in representing the British and Chinese Corporation, an English Company whereof the executive control is British, and which proposes to finance and construct Chinese railways by loans issued in London. It should also be explained that the association of French capital in this business (for which the Corporation is and must remain solely responsible) is the result of internal and purely financial arrangements made by the Corporation with a certain powerful French banking house with a view to insuring the ready provision of capital for railway and other enterprises in China. M. Casenave is appointed by the British and Chinese Corporation as its associate representative in recognition of the French financial interests and of the valuable resources which they place at the Corporation's disposal; but the direction of negotiations is intrusted to Mr. Bland, representative of the Corporation in China, who is empowered to submit terms for his Excellency's consideration in regard to railway loans. In these negotiations the Banque de l'Indo-Chine' is not concerned,
"From recent discussion of railway matters with the Yu Chuan Pu, Mr. Bland has reason to believe that he can put forward proposals acceptable alike to his Excellency and to the Chinese Government."
I have, &c.
(Signed)
E. H. FRASER.
I have, &c. (Signed)
E. II. FRASER.
(Translation.) Sir,
Inclosure 6 in No. 1.
Viceroy Chang to Consul-General Fraser.
Hankow, December 11, 1906.
I HAVE just received and read your note. The other day I received a note from the French Consul to the effect that the Director of the "Banque de l'Indo- Chine," M. Casenave, had come to Hankow, accompanied by an Englishman named
0
* The Chinese characters differ.--TRANSLATOR.
462
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