CO129-347 - Governor Sir Lugard - 1908 [4-6] — Page 131

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be maintained. Your Lordship will recollect that with

your concurrence this Colony even went further and advanced

a sum of £1,100,000 to the Viceroy of Wuchang to enable him

to redeem the Concession for the Line to Hankow which was

in the hands of an Americo-Belgian Syndicate. Hongkong has

therefore not only a very vital interest in the construct-

-ion of this Line, but also in view of the financial

support rendered, the Colony is justified in claiming that

the purpose for which the Loan was advanced is effected.

3.

The present position of affairs

appears to be an impasse. Owing to the inclusion in the

British Syndicates of a French Group without the consent

of the Chinese the latter refuse to apply for the Loan for

construction. I understand that Chang-chi-tung emphatically

declares that he will have nothing to do with an Anglo-

-French Syndicate, that he made his Agreement with the

British alone, and will not negotiate with any other,

though he is ready to apply for a Loan from the British

Syndicates. They on their part are precluded from negotia-

-tion by the terms of their Compact with the French Group,

while the French are unwilling to recede from the position

they have obtained, and to allow the British to advance

funds except in the name of the Joint Syndicate. The

British