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prepared to meet German competition, and are willing to risk that for the sake of increased means of communication which cannot fail to benefit trade in general.
It would, however, be a tactical mistake on our part to give the Chinese the impression that our interest in the Tien-tsin line was diverting our attention from the Soochow-Ningpo extension, and although I should have preferred not to resume the negotiations for the latter until the Canton-Kowloon loan had been floated, I think that they cannot safely be allowed to remain any longer in abeyance, and I have therefore, in the telegram to which I have already referred, recommended their immediate resumption.
There is unfortunately every reason to anticipate the most determined opposition, and the appointment of negotiators will, Mr. Bland considers, take six months' work, but further delay is likely to increase rather than lessen the difficulties.
I have, &c. (Signed)
Inclosure 1 in No. 1.
J. N. JORDAN.
Minutes of the Twenty-eighth Meeting held at the Office of the Haikwan Taotai, on
March 9, 1907.
Present:
Taotai Liang Tun-yen, representing the Board of Communications. Taotai C. L. Chow,
25
Mr. H. Cordes, representing the Deutsch-Asiatische Bank.
Mr. J. O. P. Bland, representing the Chinese Central Railways (Limited).
CHOW TAOTAI, referring to the Minutes of last meeting, and to Mr. Bland's statement therein regarding the assurances said to have been given by his Excellency Tang Shao-yi, observes that it should have been recorded that no instructions confirmatory of these assurances had been issued to Liang Taotai and himself by the Yu Chuan Pu. In the absence of such instructions, it was evidently impossible for them to accept the financial conditions of the Preliminary Agreement as final.
Mr. Bland points out that the understanding upon which the Syndicate anthorized abandonment of control by Boards of Commissioners and general modification of the administrative clauses of the Agreement, was clearly recorded in the Minutes of the twenty-fifth meeting (the 26th January), and suggests that it was for the Chinese Commissioners to obtain confirmation thereof, if necessary.
Mr. Cordes draws attention to the fact that, in the revised draft Agreement now under discussion, many of the financial advantages conferred by the Preliminary Agreement have been modified in favour of the Chinese Government, and that the assurances given by his Excellency Tang Shao-yi were understood to mean that no further concessions would be asked in this direction.
It is eventually agreed that if Messrs. Cordes and Bland will write officially on the subject, the Chinese Commissioners will refer the matter to the Yu Ch'uan Pu for instructions. It is also suggested that, at the same time, the Yu Ch'uan Pu should be requested to send a representative to attend these meetings, whose duty it would be to report in person their results, and to ascertain the views of the Board thereon for the guidance of the Commissioners.
Liang Taotai states that his understanding of the matter as originally expressed by his Excellency the Viceroy is that the Chinese Government is prepared to act liberally in the matter of financial conditions if the question of control is "satisfactorily settled. No official instructions, however, have been given to this effect. He considers that the system of control now proposed still leaves too great a measure of responsibility and authority in the bands of the Syndicate's representatives.
Resuming the discussion of the draft Agreement at Article 5, in regard to the term of the loan and the date at which redemption begins, Chow Taotai suggests adoption of terms similar to those of the Canton-Kowloon Railway.
Mr. Cordes points out that the conditions of Articles ō and 6, as now drafted, are the result of long negotiations already recorded; those of Article 6 in particular having been proposed by Chow Taotai at the twenty-first meeting (the 15th September). They represent important modifications of the terms granted under Imperial Edict in
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the Preliminary Agreement. If there is to be no finality in the demands for such modifications these negotiations are useless.
Chow Tautai is of opinion that none of the results of earlier negotiations can be regarded as tnal. He thinks the Canton-Kowloon Agreement's loan terms are more advantageous, and therefore proposes their adoption.
Mr. Bland strongly objects to the Canton-Kowloon Agreement's loan terms being referred to as a precedent in the present negotiations, except in so far as they affect administration and control; he points out that reference thereto is inconsistent with recent assurances, relying upon which the Syndicate has already agreed to make important concessions.
Liang Taotai proposes that, pending instructions from the Yu Ch'uan Pu in regard to the financial terms of the Agreement, the meeting should postpone their discussion and proceed to the question of control.
Articles 7 to 14 are read and passed with slight verbal amendments. It is agreed to modify Article 7 (should the Chinese Commissioners wish it) in regard to the purchase of sterling drafts, giving the Chinese Government the right of settling exchange in advance, as stipulated in the Canton-Kowloon Loan Agreement.
The meeting adjourns at 5:10 P.M.
Gentlemen,
(Signed) J. O. P. BLAND.
Inclosure 2 in No. 1.
Mr. Bland to Tuotais Liang Tun-yen and C. L. Chow.
[Undated. WITH reference to our meeting of to-day, and to the present position of the negotiations for the Tien-tsin-Yang-tsze Railway, we consider it advisable to draw your particular attention to the understanding recorded in our Minutes of the twenty-fifth and twenty-seventh meetings, upon which the Syndicate bas agreed to accept certain important modifications of the Preliminary Agreement on the subject of the railway's administra- tion and control. This understanding, in regard to the maintenance of which formal assurances have been given by his Excellency Tang Shao-yi on more than one occasion, is to the effect that, if the Syndicate abandons the system of control by Boards of Commissioners, and is prepared to adopt a system of administration similar to that laid down in the Canton-Kowloon Agreement, none of the financial advantages conferred by the Tien-tsin-Yang-tsze Preliminary Agreement would be withdrawn or curtailed,
We understand that no information on this most important matter has as yet been communicated to yourselves by the Yu Ch'uan Pu, and as a clear understanding thereof is evidently essential to the satisfactory progress of our negotiations, we have the honour to request that you may be good enough to apply to the Board for definite instructions, whereby the assurances above referred to may be confirmed.
We have, &c. (Signed)
Inclosure 3 in No. 1.
J. O. P. BLAND.
Minutes of the Twenty-ninth Meeting held at the Office of the Haikwan Taotai, March 16, 1907.
Present:
Taotai Liang Tun-yen, representing the Board of Communications.
Taotai C. L. Chow
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Mr. H. Cordes, representing the Deutsch-Asiatische Bank,
Mr. J. O. P. Bland, representing the Chinese Central Railways (Limited). LIANG TAOTAI observes that, on further consideration, his colleague and himself
are not prepared to carry out the decision recorded at last meeting by asking the Yu Ch'uan Pu for instructions, considering that their present instructions are definite, and that no good reason has been shown for suggesting their alteration. He had conveyed this decision in writing yesterday.
[2481 d-2]
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