CO129-344 - Public Offices & Foreign Office - 1907 — Page 326

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3. As Sir E.Grey is aware, when the

Hong Kong Government advanced the funds which

enabled the Chinese to assume control of the

line by buying out the American bondholders,

certain conditions were made in the interests

of British trade, and an agreement was final-

ly entered into, in September 1905, by the

Viceroy at Wuchang which was expressed to be

binding not only on him but also on the

Viceroys of Hunan and Kwantung. By this

agreement the Viceroys undertook that, if

it was found necessary to borrow money from

broad for building the line (1) British

financiers should have the first option of

undertaking the business, (2) if British

capital was employed, British firms should

have the first option of executing orders

for material purchased abroad, (3) half

the Engineers employed would be of the

nationality that found the money.

4. From