CO129-344 - Public Offices & Foreign Office - 1907 — Page 491

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control; and that it is the duty of the British

group to point out to the Viceroy that only on that

condition can they consent to negotiate with His

Excellency. The French Government also consider that

the destination of the loan should be expressly

stated in any Agreement that may be come to, 80 as

to render it impossible for the Viceroy to apply the

proceeds to any object other than railway construc-

tion.

I am to request that you will submit to the Earl

of Elgin the following observations in regard to this

matter.

This Department is in no way responsible for the

inclusion of the French in the proposed Hankow-Canton

Railway Agreement, the negotiations for which were

carried on by the British and Chinese Corporation

under a misapprehension and before this Department

were aware that they intended to enter into negotia-

tions on the subject. Nevertheless, as the arrange-

ment has been made, Sir E. Grey is of opinion that

there can now be no question of repudiating their

claim

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