I would, therefore, to-morrow send a private telegram to Sir John Jordan, telling him what I had now heard, and asking him to get at the facts in both cases. I would also communicate to him the substance of the Memorandum from M. Pichon about the Shansi extension, and instruct him to keep in touch with his French colleague about it.
I am, &c. (Signed) E. GREY.
This Document is the Property of His Britannic Majesty's Government,
CHINA RAILWAYS.
CONFIDENTIAL.
[23336]
No. 1.
0.
28381
RE
[July 4 AUG 08/
SECTION 1.
Memorandum respecting the Canton-Hankow Railway Negotiations.
WITH regard to the French Ambassador's Memorandum of the 30th June, the following account of the Canton-Hankow Railway negotiations shows the parts played respectively, according to our information, by the British and French Governments, His Majesty's Minister at Peking, and the representatives of the British and French financial groups interested :-
In 1898 an American Syndicate was granted in principle the Concession for the railway, but subsequently a Belgian Syndicate connected with the Peking-Hankow Railway concessionnaires acquired by purchase a controlling voice in the Syndicate. This was objected to both by the Chinese authorities and by the United States' Minister in China, and ultimately the Chinese decided to settle the matter by buying out the concessionnaires. For this purpose 1,100,000l. was advanced by the Hong Kong Government, whose interest in the proposed line was due to its close connection with the Canton-Hong Kong line, in which they (the Hong Kong Government) were largely concerned.
In return for this loan an assurance was at the end of 1905 obtained from Chang Chih-tung, the Viceroy of the two Hus, by which British firms were to have the preference over other foreign firms in furnishing a loan and supplying machinery and half the engineers for the construction of the railway.
The French Government about the same time expressed a desire for the co-operation of a French group in any Concession which the British and Chinese Corporation might obtain from the Chinese authorities in connection with the railway, and on the 24th January, 1906, we replied, in a Memorandum communicated to M. Cambon, that we understood that, by arrangement between the British and French group, the British and Chinese Corporation were to have half the capital put at their disposal, the French group the other half, some of which they could transfer to a Belgian group if they saw fit. We further understood the Chairman of the Company was to be a British subject with a casting vote. We preferred, however, that the details of the arrangement should be left for settlement by the two groups.
No material progress was made until the end of October 1906, when Mr. Bland, the agent of the British and Chinese Corporation, informed Sir J. Jordan that Chang Chih-tung, the Wuchang Viceroy, would be prepared, in view of the British loan made to him, to consider proposals for a British construction loan on the basis of an Agreement which had recently been signed by the Chinese and the Corporation for the construction of the Canton-Kowloon Railway, and that he and M. Casenave, representing the French financial group, accordingly intended to visit the Viceroy.
The French Consul also wrote to the Viceroy, asking him to arrange to see M. Casenave (whom he described as "Director of the Banque de l'Indo-Chine") accompanied by an Englishman named Bland. The Viceroy replied, however, that he could not understand why a Director of the Banque de l'Indo-Chine should want to see him in conjunction with Mr. Bland.
His Majesty's Consul-General then, in order to overcome the Viceroy's objections, explained to him (with M. Casenave's concurrence) that M. Casenave really wanted to see him as representing the British and Chinese Corporation, and not in his capacity of Director of the French Bank. The association of French capital in the business was the result of internal and purely financial arrangements made by the Corporation with certain powerful French houses.
Subsequently an interview between Mr. Bland (accompanied by Mr. Fraser) and the Viceroy took place. Mr. Bland stated that the President of the Board of Communications in Peking had assured him that, provided that the Viceroy did not object, his Board would support the raising abroad of a construction loan for the Canton-Hankow Railway, and in June 1907 His Majesty's Consul-General at Hankow and Mr. Hillier had an interview with the Viceroy and showed him a draft Agreement,
Page 390
Page 391
2
I would, therefore, to-morrow send a private telegrani to Sir John Jordan, telling him what I had now heard, and asking him to get at the facts in both cases. I would also communicate to him the substance of the Memorandum from M. Pichon about the Shanshi extension, and instruct him to keep in touch with his French colleague about it.
I am, &c. (Signed) E. GREY.
-387
This Document is the Property of His Britannic Majesty's Government,
CHINA RAILWAYS.
CONFIDENTIAL.
[23336]
No. 1.
0.
28381
RE
[July 4 AUG 08/
SECTION 1.
Memorandum respecting the Canton-Hankow Railway Negotiations.
WITH regard to the French Ambassador's Memorandum of the 30th June, the following account of the Canton-Hankow Railway negotiations shows the parts played respectively, according to our information, by the British and French Governments, His Majesty's Minister at Peking, and the representatives of the British and French financial groups interested :-
In 1898 an American Syndicate was granted in principle the Concession for the railway, but subsequently a Belgian Syndicate connected with the Peking-Hankow Railway concessionnaires acquired by purchase a controlling voice in the Syndicate. This was objected to both by the Chinese authorities and by the United States' Minister in China, and ultimately the Chinese decided to settle the matter by buying out the concessionnaires. For this purpose 1,100,000l. was advanced by the Hong Kong Government, whose interest in the proposed line was due to its close connection with the Canton-Hong Kong line, in which they (the Hong Kong Government) were largely concerned.
In return for this Joan an assurance was at the end of 1905 obtained from Chang Chih-tung, the Viceroy of the two Hus, by which British firms were to have the preference over other foreign firms in furnishing a loan and supplying machinery and half the engineers for the construction of the railway.
The French Government about the same time expressed a desire for the co-opera- tion of a French group in any Concession which the British and Chinese Corporation might obtain from the Chinese authorities in connection with the railway, and on the 24th January, 1906, we replied, in a Memorandum communicated to M. Cambon, that we understood that, by arrangement between the British and French group, the British and Chinese Corporation were to have half the capital put at their disposal, the French group the other half, some of which they could transfer to a Belgian group if they saw fit. We further understood the Chairman of the Company was to be a British subject with a casting vote. We preferred however, that the details of the arrangement should be left for settlement by the two groups.
No material progress was made until the end of October 1906, when Mr. Bland, the agent of the British and Chinese Corporation, informed Sir J. Jordan that Chang Chih-tung, the Wuchang Viceroy, would be prepared, in view of the British loan mado to him, to consider proposals for a British construction loan on the basis of an Agreement which had recently been signed by the Chinese and the Corporation for the construction of the Canton-Kowloon Railway, and that he and M. Casenave, representing the French financial group, accordingly intended to visit the Viceroy.
The French Consul also wrote to the Viceroy, asking him to arrange to sec M. Casenave (whom he described as "Director of the Banque de l'Indo-Chine") accompanied by an Englishman named Bland. The Viceroy replied, however, that le could not understand why a Director of the Banque de l'Indo-Chine should want to see him in conjunction with Mr. Blaud.
His Majesty's Consul-General then, in order to overcome the Viceroy's objections, explained to him (with M. Casenave's concurrence) that M. Casenave really wanted to sce him as representing the British and Chinese Corporation, and not in his capacity of Director of the French Bank. The association of French capital in the business was the result of internal and purely financial arrangements made by the Corporation with certain powerful French houses.
Subsequently an interview between Mr. Bland (accompanied by Mr. Fraser) and the Viceroy took place. Mr. Bland stated that the President of the Board of Com- munications in Peking had assured him that, provided that the Viceroy did not object, his Board would support the raising abroad of a construction loan for the Canton- Hankow Railway, and in June 1907 His Majesty's Consul-General at Hankow and Mr. Hillier had an interview with the Viceroy and showed him a draft Agreement,
[1841 p-1]
Page 390Page 391
No comments yet.
Private notes are available after approval.