CO129-344 - Public Offices & Foreign Office - 1907 — Page 255

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The names of the stations are as follows:-

Shanghae.

Lung Hua.

Mai Chia Lung,

Hsin Chuang.

Hsin Chiao.

Sungkiang Gate East. Sungkiang Gate West. Huang Chiao Chen. Han Chia Ho Feng Chin.

{.

[This Document is the Property of His Britannic Majesty's Government.]

CHINA RAILWAYS,

CONFIDENTIAL,

[May 18.]

254

C.O

21013

SECTION 49 13 JUN 07

[16207]

No. 1.

(No. 158.) Sir,

Sir J. Jordan to Sir Edward Grey-(Received May 18.)

Peking, April 1, 1907. I HAVE the honour to transmit to you herewith copy of a letter which the agent of the British and Chinese Corporation addressed to his Excellency Tong Shoa-yi on the 26th ultimo, relative to the proposed participation of the Canton Government in the Canton-Kowloon Railway Loan.

Immediately after the conclusion of the Agreement the Viceroy telegraphed to the Central Government asking that 750,0001. of the bonds should be reserved for subscription by the Provincial Government, and Mr. Bland's letter shows the arrangements which the Corporation is prepared to make to meet his Excellency's requirements.

In my conversations with the Wai-wu Pu and the Corporation's agent I have expressed myself as strongly in favour of the Viceroy's proposal. Its adoption would, I think, have a good effect in enlisting Chinese co-operation in railway enterprise and in removing the opposition which now exists to their construction by foreigners. Even if, as seems probable, the Viceroy is unable to raise the required amount, the mere fact that he received the option of doing so should go some way towards convincing the Chinese that we are disposed to meet their overtures for financial co-operation in a reasonable spirit.

I have, &c.

(Signed)

J. N. JORDAN.

Inclosure in No. 1.

Mr. J. Bland to Tong Shoa-yi.

Your Excellency,

Peking, March 26, 1907. IN accordance with the understanding arrived at in conversation with your Excellency on the 22nd instant, I telegraphed to the British and Chinese Corporation's Board of Directors stating that his Excellency the Viceroy of Canton was not able at the moment to state definitely his requirements in regard to participation in the Canton-Kowloon Railway Loan, and suggesting that he be given a fourteen days" I am now option from that date to subscribe for not more than 750,0002. of bonds. in receipt of the Board's reply to this proposal stating that the option in question is agreed to, that is to say, the amount required is reserved for subscription by his Excellency, at the issue price, less 1 per cent. underwriting, on the understanding that his answer is received in London not later than the 6th April. Should no answer be forthcoming by that date, it will be understood that the Viceroy's proposal is withdrawn.

In conveying this reply to your Excellency, I am to point out that the issue of the loan (which in terms of the Agreement the Corporation is entitled to make immediately after signature) has been necessarily delayed by the Viceroy's application, and I have the honour to request that this fact may be clearly stated, and its urgency explained, to his Excellency. On the 14th instant (as I informed your Excellency) the Board was advised that the loan could be issued immediately at par, and in postponing the issue to meet the Viceroy's wishes the Directors have, therefore, incurred the risk of a fall in the market. Should a fall occur, and the price payable to the Chinese Government be thus reduced, no responsibility or blame can attach to the Corporation.

I have, &c. (Signed) J. O. P. BLAND.

[2481 s--4]