63
that His Majesty's Government may in future be held to
have tacitly concurred therein seeing that the pro-
posed reply contains no refutation of the present
claims of the French Government.
Sir E.Grey thinks that Lord Elgin's objection
may be removed if the following alterations were made
to the draft reply.
Between the third and fourth paragraphs (between
the words "held it" and "while His Majesty's Govern-
ment")the following paragraph might be inserted.
"It is not moreover quite clear what is the ex-
*tent of the claim of the French Government in this
"matter.
Monsieur Cambon was informed in the Memor-
*andum communicated to him on January 24th, 1906 that
"His Majesty's Government would be glad if an arrange-
"ment could be made for the cooperation of a French
"financial group in the Hankow-Canton Railway enter-
*prise, but that they would prefer to leave the set-
details to the financiers of the two
*tlement of the
*countries; that His Majesty's Government understood
}
"that the capital of the proposed British Company was
"to
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