507
DRAFT.
to Brit sh capital and British, manufacturers,
and expressed the hope of His Majesty's Govern-
ment that in these circumstances no loan
would be granted by Japan which would be pre-
judicial to British interests in regard to
Railways in China. The Japanese Government
replied that the existence of this agreement
was previously unknown to them, and on learn-
ing of it they gave directions to the bank to
retire from the affair. Lora Elgin apprehends
that a very unfavourable impression will be
left on the minds of the Japanese Government
when they discover that he British Govern-
ment have made use of them to prevent Japanese
nationals from concluding a profitable busines
arrangement while at the same time they were
voluntarily conceding to the French an equal
share in the advantages of the agreement,
5.
A further point of importance has
hsen brought to Lord Elgin's notice since my
letter
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