CO129-344 - Public Offices & Foreign Office - 1907 — Page 544

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

CHINA RAILWAYS.

CONFIDENTIAL.

27192 [May 21.]

SECTION 130 JUL 07

[16614]

No. 1.

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Sir J. Jordan to Sir Edward Grey.-(Received May 21.) (No. 86.) (Telegraphic.) P.

Peking, May 21, 1907. WITH reference to my telegram No. 81 of the 15th instant, I have the honour to inform you that, in an interview with Messrs. Bland and Hillier at Wuchang, at which His Majesty's Consul-General was present, his Excellency the Viceroy stated that, although he was desirous of concluding railway loan, he could do nothing until the Yokohama Specie Bank, to whom he was under engagement, withdrew their offer. Terms for a loan in the event of such withdrawal were, however, sketched out, and these Bland will discuss with the Board of Communications.

As a result of a conversation which Bland and Hillier had subsequently with Odagiri, His Majesty's Consul-General received an explanation from the Japanese Consul to the effect that the latter and Odagiri had acted without any intention of encroaching on our legitimate sphere of influence and in ignorance of withdrawal mentioned in my telegram No. 81. The Consul had telegraphed to the Japanese Minister that, under the circumstances, he could not proceed further with the negotiations. They both acknowledged the 1905 compact.

The nature of the Chinese engagements to us and of our engagements to the French has been fully explained by me to the Japanese Minister. I added that there was no objection to the admission of Japanese financial co-operation, subject to the observance of the above engagements. The Japanese Minister did not confirm his Consul's statement with regard to withdrawal, but promised to consult Bland about the question..

[16620]

No. 2.

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(No. 87.)

Sir J. Jordan to Sir Edward Grey.--(Received May 21.)

(Telegraphic.) P.

Peking, May 21, 1907. PLEASE see the last paragraph of my telegram No. 86 of to-day's date. The Japanese Minister has asked me for a copy of the despatch of the 9th September, 1905, from Viceroy to Consul-General respecting the Hankow-Canton line, which was inclosed in my despatch to you No. 316 of the 22nd September, as he desires to furnish his Government with exact information concerning our railway engagements south and west of Hankow,

Have you any objection to my giving him this confidentially?

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