CO129-345 - Public Offices & Foreign Office - 1907 — Page 146

projects are under consideration, the Tientsin Chinkiang

and the Soochow Ningpo lines, and all our attention

143

should be concentrated upon these until they are cleared

off.

In conformity with a promise which he gave to the

Viceroy, Mr.Hillier on his return here saw the Grand

Secretary Na and explained to him the nature and scope

of the loan negotiations at Kankov, Mr.Hillier forvarded

to H.M.Consul General at Hankow an account of the inter-

view, a copy of which is enclosed.

From this it will be

Been that the Board of Finance has assumed control over

provincial borrowing and that their approval is in

future to be a condition precedent to the negotiation

of foreign loana by the provincial authorities.

I am told, however, by a high chinese authority that

the Board is acting merely in self defence. As the

provinces are raising the question of foreign railway

loans and propose to make the Board responsible for

their repayment, the latter naturally wishes to retain

the control of the arrangemente. Na chung tiang,

it

will be observed, stated that there was no objection

in