2
Inclosure 2 in No. 1.
Mr. Bland to Sir J. Jordan.
Peking, July 6, 1908.
I HAVE the honour to acknowledge the receipt of your despatch of the 30th ultimo, which conveys to me, for the information of the Chinese Central Railways Board of Directors, the reply of his Highness Prince Ch'ing to your Excellency's request that negotiations should be commenced for the conclusion of the Final Agreement in re the Pukow-Sinyang Railway. I have duly forwarded copy of this despatch for the information of my Board.
With reference to the statements therein contained, I avail myself of this opportunity to observe that the change in circumstances to which his Highness alludes is fully recognized by the Chinese Central Railways, as has recently been shown by their acceptance, in the case of the Tien-tsin-Pukow Railway Loan Agreement, of conditions substantially different from those to which they were entitled under the Preliminary Agreement. It is evident that the precedent of reasonable compromise thus created, based upon recognition of existing conditions, would apply in the present instance, but I would respectfully submit that the fact of circumstances having changed cannot reasonably be cited in justification for further postponement of these negotiations. I would also observe that, towards the conclusion of the Tien-tsin-Pukow Railway negotiations, in October last, it was suggested to your Excellency by the Wai-wu Pu, and I informed my Board of the fact, that the Pukow-Sinyang Railway should be simultaneously concluded under conditions similar to those of the Anglo-German Agreement, since which date no noteworthy change of circumstances has occurred.
As regards the final location of the terminal points of the railway, the matter is evidently one for consideration by the Imperial Chinese Government and possible rearrangement, but it affords, per se, no sufficient reason for postponement of these negotiations. The Directors of the Chinese Central Railways give me discretion to accept any reasonable modification in this matter, or any other, in which the conditions implied in the Preliminary Agreement can be shown to be inexpedient or unworkable.
I have, &c. (Signed) J. O. P. BLAND.
Your Highness,
Inclosure 3 in No. 1.
Sir J. Jordan to Prince Ching.
July 9, 1908.
I HAVE the honour to acknowledge the receipt of your Highness' note of the 27th June respecting the proposal of the Chinese Central Railways (Limited) to negotiate a Final Agreement for the construction of the Hsin-yang-Pukow Railway, and to state, in reply, that the change of circumstances to which your Highness alludes is fully recognized by that Company, as has been shown by their acceptance, in the case of the Tien-tsin-Pukow Railway Loan Agreement, of conditions substantially different from those to which they were entitled under the Preliminary Agreement. It is further evident that this precedent of reasonable compromise would apply in the present instance, and it will be recalled that during the negotiations of the Tien-tsin-Pukow Agreement in October last it was suggested by the Board that an Agreement for the Pukow-Sinyang line should be concluded on the same terms, with the exception of the clause regarding commutation of profits.
Since that time no important change of circumstances has arisen, while as regards the final location of the terminal points of the line it has been submitted to me by Mr. Bland, the representative of the Company, that this is a matter which is susceptible of adjustment by friendly negotiation, and that he is empowered by his principals to accept any reasonable modification in this or any other respect in which the conditions implied in the Preliminary Agreement can be shown to be inexpedient or unworkable.
I trust, therefore, that your Highness' Board will bear in mind that the Preliminary Agreement for this line was the result of a definite understanding between the British and Chinese Governments, which cannot be set aside without mutual agreement, and that you will consequently appoint a representative to discuss the matter with Mr. Bland.
I avail, &c.
44
3
Inclosure 4 in No. 1.
Chinese Central Railways to Mr. Bland.
Dear Sir,
110, Cannon Street, London, June 23, 1908.
I BEG to acknowledge receipt of your letter No. 57 of the 18th May. Tien-tsin-Pukow Railway: Branch Lines.-The first paragraph of your letter calls attention to the terms of a Memorial by ex-Viceroys Chang Chih Tung and Yuan Shih Kai, in which the German Bank alone is mentioned as the party to whom application is to be made for the financing of branch lines, whereas by the terms of Article 19 of the Agreement it is the "Syndicate" to which preference is to be given. My Directors do not anticipate that any difficulty will arise on this point, because it has been expressly provided for by an Agreement come to between the Chinese Central Railways and the Deutsch-Asiatische Bank on the 18th March last, whereby it is agreed that the Deutsch Bank shall be exclusively interested in branch lines issuing from the northern section, and the British Company in branch lines issuing from the southern section. I am to take the opportunity to inclose, for your information, copy of the text of the two last Articles of this Agreement, viz., Articles 8 and 9, the former of which, as you will see, deals with the purchase of materials and, in particular, with materials which may be common to both sections of the railway, e.g., rolling-stock. It is desirable that you should bring the purport of these two Articles to the notice of the Director-General. There is, of course, no intention of fettering him in any way in his choice of manufacturers of the rolling-stock, but it is simply to let him know that if he wishes it to be all of one pattern the Companies will offer no objection, and his orders will be executed by the one or the other according to his choice of locality.
Inclosure 5 in No. 1.
Extracts of Supplemental Agreement made between the Deutsch-Asiatische Bank and the Chinese Central Railways, dated March 18, 1908.
8. NOTWITHSTANDING anything expressed or implied to the contrary in Article 18 of the principal Agreement, the purchase of materials, plant, and goods thereunder shall be effected, if on the continent of Europe, by the Deutsch-Asiatische Bank, and, if elsewhere, by the British Company.
9. With regard to Article 19 of the principal Agreement, the Deutsch-Asiatische Bank shall be exclusively interested in the finding of foreign capital required for branch lines issuing from the northern section of the railway, and the British Company shall be exclusively interested in the finding of foreign capital required for branch lines issuing from the southern section of the railway.
599
Sir,
2
Inclosure 2 in No. 1.
Mr. Bland to Sir J. Jordan.
Peking, July 6, 1908. I HAVE the honour to acknowledge the receipt of your despatch of the 30th ultimo, which conveys to me, for the information of the Chinese Central Railways Board of Directors, the reply of his Highness Prince Ch'ing to your Excellency's request that negotiations should be commenced for the conclusion of the Final Agree- ment in re the Pukow-Sinyang Railway. I have duly forwarded copy of this despatch for the information of my Board.
With reference to the statements therein contained, I avail myself of this opportunity to observe that the change in circumstances to which his Highness alludes is fully recognized by the Chinese Central Railways, as has recently been shown by their acceptance, in the case of the Tien-tsin-Pukow Railway Loan Agreement, of conditions substantially different from those to which they were entitled under the Preliminary Agreement. It is evident that the precedent of reasonable compromise thus created, based upon recognition of existing conditions, would apply in the present instance, but I would respectfully submit that the fact of circumstances having changed cannot reasonably be cited in justification for further postponement of these negotia- tions. I would also observe that, towards the conclusion of the Tien-tsin-Pukow Railway negotiations, in October last, it was suggested to your Excellency by the Wai- wu Pu, and I informed my Board of the fact, that the Pukow-Sinyang Railway should be simultaneously concluded under conditions similar to those of the Anglo-German Agreement, since which date no noteworthy change of circumstances has occurred.
As regards the final location of the terminal points of the railway, the matter is evidently one for consideration by the Imperial Chinese Government and possible rearrangement, but it affords, per se, no sufficient reason for postponement of these negotiations. The Directors of the Chinese Central Railways give me discretion to accept any reasonable modification in this matter, or any other, in which the conditions implied in the Preliminary Agreement can be shown to be inexpedient or unworkable.
I have, &c. (Signed) J. O. P. BLAND.
Your Highness,
Inclosure 3 in No. 1.
Sir J. Jordan to Prince Ching.
July 9, 1908.
I HAVE the honour to acknowledge the receipt of your Highness' note of the 27th June respecting the proposal of the Chinese Central Railways (Limited) to negotiate a Final Agreement for the construction of the Hsin-yang-Pukow Railway, and to state, in reply, that the change of circumstances to which your Highness alludes is fully recognized by that Company, as has been shown by their acceptance, in the case of the Tien-tsin-Pukow Railway Loan Agreement, of conditions substantially different from those to which they were entitled under the Preliminary Agreement. It is further evident that this precedent of reasonable compromise would apply in the present instance, and it will be recalled that during the negotiations of the Tien-tsin- Pukow Agreement in October last it was suggested by the Board that an Agreement for the Pukow-Sinyang line should be concluded on the same terms, with the exception of the clause regarding commutation of profits.
Since that time no important change of circumstances has arisen, while as regards the final location of the terminal points of the line it has been submitted to me by Mr. Bland, the representative of the Company, that this is a matter which is susceptible of adjustment by friendly negotiation, and that he is empowered by his principals to accept any reasonable modification in this or any other respect in which the conditions implied in the Preliminary Agreement can be shown to be inexpedient or unworkable.
I trust, therefore, that your Highness' Board will bear in mind that the Preliminary Agreement for this line was the result of a definite understanding between the British and Chinese Governments, which cannot be set aside without mutual agreement, and that you will consequently appoint a representative to discuss the matter with Mr. Bland.
I avail, &c.
44
3
Inclosure 4 in No. 1.
Chinese Central Railways to Mr. Bland.
Dear Sir,
110, Cannon Street, London, June 23, 1908. I BEG to acknowledge receipt of your letter No. 57 of the 18th May. Tien-tsin-Pukow Railway: Branch Lines.-The first paragraph of your letter calls attention to the terms of a Memorial by ex-Viceroys Chang Chih Tung and Yuan Shih Kai, in which the German Bank alone is mentioned as the party to whom application is to be made for the financing of branch lines, whereas by the terms of Article 19 of the Agreement it is the Syndicate" to which preference is to be given. My Directors do not anticipate that any difficulty will arise on this point, because it has been expressly provided for by an Agreement come to between the Chinese Central Railways and the Deutsch-Asiatische Bank on the 18th March last, whereby it is agreed that the Deutsch Bank shall be exclusively interested in branch lines issuing from the northern section, and the British Company in branch lines issuing from the southern section. I am to take the opportunity to inclose, for your information, copy of the text of the two last Articles of this Agreement, viz., Articles 8 and 9, the former of which, as you will see, deals with the purchase of materials and, in particular, with materials which may be common to both sections of the railway, c.g., rolling-stock. It is desirable that you should bring the purport of these two Articles to the notice of the Director- General. There is, of course, no intention of fettering him in any way in his choice of manufacturers of the rolling-stock, but it is simply to let him know that if he wishes it to be all of one pattern the Companies will offer no objection, and his orders will be executed by the one or the other according to his choice of locality.
Inclosure 5 in No. 1.
Extracts of Supplemental Agreement made between the Deutsch-Asiatische Bank and the Chinese Central Railways, dated March 18, 1908.
8. NOTWITHSTANDING anything expressed or implied to the contrary in Article 18 of the principal Agreement, the purchase of materials, plant, and goods thereunder shall be effected, if on the continent of Europe, by the Deutsch-Asiatische Bank, and, if elsewhere, by the British Company.
9. With regard to Article 19 of the principal Agreement, the Deutsch-Asiatische Bank shall be exclusively interested in the finding of foreign capital required for branch lines issuing from the northern section of the railway, and the British Company shall be exclusively interested in the finding of foreign capital required for branch lines issuing from the southern section of the railway.
599
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