CO129-360 - Public Offices - 1909 — Page 172

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in Sir John Jordan's of the 1st January 1909.

Mr.Bland to sir Joh braan.

JAN 20 1909

PEKING, 26 December 1908.

Dear Sir John,

I enclose copy of the memorandum I have made recording

the results of my interview with Chang Chih-tung. I have

sent a copy to Fraser.

Odagiri was with Chang yeateday. I learn that he

expects that the Japanese will come in under any loan that

may be made by British finance, that is to say that half of

the Engineere and work of construction will be Japanese.

If this should prove to be the case, there must arise serious

difficulties, for the railway is by agreement (approved by

the P.0.) an Anglo-French concern, and even if the Rritish

were to agree that British capital shouldbe placed at China's

disposal for the specifio advantage of Japanese manufacturers

and contractors, the French Government would certainly refuse

to be bound by any such condition. Nor couldwe expect any

British contractor to agree to have Japanese Engineers and

construction work imposed upon him as a metter of right,

though, no doubt, something might be arranged to meet this

condition if unavoidably necessary.

I sre that the Hankow pact of 1905 was signed only

by the Viceroy, and is practically a promise from hàn. Do you

know whether we are in any way officially bound to give the

Japanese the advantages they claim? It seems to me absurd

that, without quidproque, British capital should be thus

fettered for the advancement of Japanese interests, and that

we ought to be able to get away from this incubus if the Chin-

ese can be got to see that the conditions under which the arrangement was proposed have now completely changed, with the elimination of departmental construction in foreign handa. I should be very grateful for your advice in this matter.

Yours &c. sa/ J.O.P.Bland.