C. O.
.29760 REC 628
20 AUG
Paraphrase of telegram from Sir Jordan Peking
No.112. dated 17th June 1907.
J.
At an interview with the Vireroy of Wuchang,
His Majesty's Consul General at Hankow and Mr. Hil-
lier presented a draft agreement providing for equal
participation by the French Bank and the Hongkong
and Shanghai Bank in the Loan.
The Viceroy replied that he was only under obliga.
tion to us and wanted to borrow from us alone.
Our
relations with the French financiers were not bind-
ing upon third parties but were our own business,
and he absolutely declined to allow French partici-
pation as unfair after our objections to the Japan-
Such participation would, he alleged, ensure
the Throne's rejection of his request for sanction
ese.
to raise a loan. This refusal on the part of the
Viceroy is accepted as absolute and as a withdrawal
from the negotiations by His Majesty's Consul-Gener-
al and Mr. Hillier.
The situation thus created is serious and com-
plicated. For, while the new Canton Viceroy has
applied
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