CO129-344 - Public Offices & Foreign Office - 1907 — Page 613

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Bo it would in that case be necessary to append to the

contract such a final clause as was appended to the 1905

Chinese Government loan. If His Excellency preferred it

Mr Hillier would omit all reference to the French bank in

the body of the doattact and submit the draft of a final

clause announcing French participation so as to render the

bonds saleable on the Paris Bourse.

The Viceroy, however, repeatedly insisted that the

contract must be solely with the British, the Decree com-

municated solely to you and the bonds signed solely by the

Chinese Minister in London. He added that we had insisted

on the withdrawal of the Japanese offer, though it was Mr

Odagiri who devised the method that rendered borrowing

feasible, and now to drag in any other nation would be

unjust and offensive to Japan. Moreover the Germans had

earlier tried to make a loan (referring either to their

1905 efforts as to the Hankow-Szechuen railway or to their

recent abortive £1,000,000 agreement ) and would not be

content to play second fiddle. Finally the insertban of

the French bank would ensure rejection by his Government

of his loan proposal.

His secretary, Kao, who alone was present, here whis-

pered to me the word "Yunnan"; but, I believe, His Excel-

lency