CO129-344 - Public Offices & Foreign Office - 1907 — Page 369

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

CHINA RAILWAYS.

CONFIDENTIAL.

[19317]

No. 1.

307

[June 11.]

SECTION 1. C. S

23671

RECE

British and Chinese Corporation to Foreign Office.—(Received June 11. 4 JUL 07

Sir,

22, Abchurch Lane, London, June 10, 1907. REFERRING to our letter of the 4th instant, we beg leave to forward herewith translations of further telegrams which have passed between the Hong Kong and Shanghae Bank and their Peking agent.

(Telegraphic.)

We are, &c.

(Signed)

The British and Chinese Corporation (Limited),

W. KESWICK, Chairman,

Inclosure 1. in No. 1.

Peking Agent to Hong Kong and Shanghae Bank.

June 7, 1907. RE your wire of 4th, security offered is Central Bureau for collection of shop tax and of general li-kin, excluding opium and salt, and is well suited for control in case of need by Foreign Commissioner appointed by lenders on the line of Articles 4 and 6 of British Guarantee Loan of 1900, which Viceroy proposes as model,

There is no difference in principle between loan offered and Kowloon-Canton extension loan. Nature of contract is identical both as regards to authorization and unconditional guarantee of Chinese Imperial Government.

Prospectus can state object of loan is public work and communication. Payment and application of funds; it must be subject to certificate of British Civil Engineer appointed by Company. If we refuse to negotiate after insisting on withdrawal of Japanese, we shall place British Consul, Hankow, and all parties concerned in very false position vis-à-vis Chang Chih-tung, Viceroy of Hankow.

(Telegraphic.)

Inclosure 2 in No. 1.

Hong Kong and Shanghae Bank to Peking Agent.

June 7, 1907.

RE your wire of the 6th, do we understand you to mean that agreement will be made with Wai-wu Pu and bonds sealed by Chinese Minister as in case of Kowloon- Canton extension?

Would we be entitled to describe it in prospectus as Chinese Imperial Government Loan or Imperial Chinese Railway Loan?

If not, what would be the correct title.

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