This Document is the Property of His Britannic Majesty's Government.į
2
whereby the Hong Kong and Shanghae Bank and the Banque de l'Indo-Chine were to participate equally.
But the Viceroy still refused French participation, as lie was under no obligation
to them.
Later in the same month, the negotiations having been taken up by Mr. Hillier during the absence of Mr. Bland. Sir J. Jordan sent home the translation of a com- munication from Chang to the Chinese Government, stating that the British wanted the French to participate, and saying he had refused.
Sir J. Jordan then reported that the French group were apparently willing that the British and Chinese Corporation should appear as the lendor, but that the French Government would not agree.
These loan negotiations having fallen through, the matter remained for some time in abeyance.
In February 1908 the question was taken up again, and in consequence of certain proposals made by the French Syndicate to the British and Chinese Corporation in connection with the intention of the Chinese Government to pay off the Peking- Hankow Railway concessionnaires, Mr. Addis went to Paris on behalf of the British and Chinese Corporation, and an Agreement was arrived at, providing that the financial interest of each group was to be equal in both the Canton-IIankow and Peking-Hankow loans; the British and Chinese Corporation were to control the former line and the French group the latter. It was understood that this arrange-
ment received the concurrence of the French Government.
In the matter of the Canton-Hankow Railway, however, the Chinese refuse to proceed pending the settlement of certain Belgian claims, and matters are at present in abeyance. As regards the proposed Anglo-French loan to China for the redemption of the Peking-Hankow Railway, it is understood that a settlement has just been effected between the French and English groups on a basis approved by the French Foreign Office.
2. To turn to M. Cambon's remarks about the present attitude of His Majesty's Minister at Peking and the agent of the British group, Sir J. Jordan bas assured us that though he has stated more than once to his French colleague his personal opinion that the French claim for the extension of the Chengting-Taiyuenfu Railway to Singanfu would re-act seriously on Anglo-French railway projects, he has otherwise maintained throughout an attitude of the strictest abstention; and he adds that he will be careful to keep in as close touch as possible with M. Bapst. He appears somewhat disappointed, however, that, in view of his excellent relations with M. Bapst and the importance of the joint Anglo-French railway interests in China, he was not warned of the intention to make the claim before it became public property at Peking.
As regards the Peking-Hankow and Canton-Hankow Railways, Sir J. Jordan has pointed out that it was he, and not the French Minister, who first ascertained in July 1907 that the Wai-wu Pu did not object to French participation, though Viceroy Chang, the official in charge of the negotiations, was at the time opposed to it. He has reported that Mr. Bland has been throughout, and is still, in intimate relations with M. Casenave, the French Bank representative, and not the least suspicion of disloyalty between them has ever been suggested.
Moreover, Sir J. Jordan, who has just seen the French Minister, found hinr fully informed on the Hillier Loan negotiations of June 1907, referred to in the first part of this Memorandum. In reply to a direct question which he was asked as to whether he had any reason to complain of Mr. Hillier not keeping him informed, M. Bapst informed Sir J. Jordan twice, with an emphatic gesture, "None whatever." M. Bapst explained that negotiations were still in a preliminary stage, and that Mr. Hillier had promised to let him know as soon as they became serious.
The above will no doubt be sufficient to convince M. Cambon that there is no foundation for the view which the French Government appear to have taken of our action, and he will be able to see that while both here and at Hankow we have borne almost the entire burden of these difficult negotiations, our first care throughout has been the loyal observance of our engagements to the French, and that we can hardly be blamed for the fact that ex-Viceroy Chang Chili-tung is more opposed to French participation than the Central Government as a whole.
Foreign Office, July 15, 1908,
INA RAILWAYS.
CONFIDENTIAL.
[25440]
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received July 22.)
(No. 291. Confidential.)
Sir,
[July 22.]
SECTION 1.
Peking, June 25, 1908. THE Japanese Government not having answered the note, inclosed in my despatch No. 214 of the 12th May, which the Wai-wu Pu sent the Japanese Chargé d'Affaires a reminder a few days ago, maintaining the views previously expressed as regards the projected Fakumen-Hsinmintuu Railway, and requesting the Japanese Government, if they still held to their original objections, to state a clear definition of what is to be considered as "in the close vicinity of or parallel to" the South Manchurian line. translation of the reminder, which has been communicated to me privately by his Excellency Tong Shao-yi, is inclosed herewith. The semi-official statement of the Japanese case, which was published in Tokio on the 10th June, and which has no doubt been sent to you by His Majesty's Ambassador, is being made widely known in China, and it produced a rejoinder from the pen of Mr. Bland, copy of which I inclose for your
information.
(Translation.)
I have, &e.
(Signed) J. N. JORDAN.
Inclosure 1 in No. 1.
Prince Ching to Japanese Chargé d'Affaires,
June 1908.
A
Sir,
IN my note of the 6th May to his Excellency Baron Hayashi, I had the honour to explain, with reference to the project of the Chinese Government to construct a railway from Isin Min-fu to Fakumen, that the object in view was to develop this region and facilitate its communications; and that there was no idea of injuring the interests of the South Manchurian Railway.
No reply has yet been received to this note, and I now have the honour to main- tain again that the extension of the line in this direction can in no wise be said to he in the close vicinity of the South Manchurian line or parallel to it, as was clearly explained in my former note.
I presume, therefore, that the Japanese Government have no objection to offer, but if they still hold the view already expressed I trust that you will afford me a clear definition of what is to be considered as "in the close vicinity of or parallel to" the South Manchurian line, in replying to my previous note upon this subject.
I avail, &c. (Signed) Prince CIʻING.
Inclosure 2 in No. 1.
Memorandum by Mr. Bland respecting the proposed Fakumen Railway.
ON the 10th June it was announced by the Press Bureau in Tôkiô that an "authoritative statement" had been issued, stating the Japanese case against the construction of the proposed railway from Hsinmintun to Fakumen, and a summary of its arguments was telegraphed abroad. Whether an anonymous document can properly be described as authoritative is open to question; nevertheless, the document having been officially communicated to His Majesty's Ambassador in Tokiô, we may reasonably presume that the Japanese Government subscribes to the statements and arguments therein contained. Many of these are disingenuous to the verge of puerility, and the author assumes in the general reader an ignorance of Far Eastern events and politics
[1811 y--~1]
B
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