CO129-360 - Public Offices - 1909 — Page 447

i

A few days later, Mr. Campbell, the Chinese Secretary, had occasion to call on Liang Tajen in connection with other business, and his Excellency took the opportunity to convey to me a message, the terms of which are contained in the inclosed Memorandum by Mr. Campbell, and were communicated to you in my telegram No. 27 of the 17th January.

The whole question, as its previous history abundantly shows, is one surrounded with difficulties, not the least of which at present is the total absence of reliable information in the archives of the Portuguese Legation here. The result is that the Portuguese Chargé d'Affaires is not in a position to discuss the question on equal terms with the Wai-wu Pu. The Legation is regarded rather as a dependency of Macao, from the revenues of which it is, I understand, maintained, and the Chargé d'Affaires either does not possess, or is unwilling to exercise the discretionary powers usually allowed to an Agent representing his Government. He merely telegraphs the substance of the communications he receives to Lisbon, and obtains little or nothing in return to enable him to deal with the statements of the Wai-wu Pu.

As I have suggested to you in my telegram No. 27 of the 17th instant, it seems necessary, if we are to assume responsibility for the conduct of this question, that we should receive direct and first-hand information of what is going on at Macao, and I think, therefore, it would be desirable if a Consular officer could, with the consent of the Portuguese Government, be sent there for this purpose.

I have, &c. (Signed)

J. N. JORDAN.

This Document is the Property of His Britannic Majesty's Government.]

CHINA RAILWAYS.

CONFIDENTIAL

43444]

C. O.

6761 RECE

[December 12.]

SECTION 7.

Rect 25 E 09

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received December 12.)

(No. 199.) (Telegraphic.) P.

HANKOW-CANTON Railway.

Peking, December 12, 1908.

I was approached to-day by my American colleague on the subject of his Govern- ment's desire to arrange for the investment of American capital in railways in this country. Mr. Rockhill told me that he was in receipt of telegraphic instructions which, in special reference to the Canton-Hankow Railway, urged him to compete with the other foreign Legations in securing to American financiers equality of opportunity.

I pointed out to Mr. Rockhill that the Chinese were committed to us so far as the financing of the Canton-Hankow line was concerned. From a general point of view I thought that American co-operation in loans for railway purposes was to be welcomed, politically speaking, but, in the best interests of China, I was strongly adverse to competition as opposed to co-operation. I alluded to the fact that a railway loan to the Chinese entailed a very strict supervision over the manner in which the money was spent, as we had recently learnt by experience.

My American colleague fully concurred in the views I expressed as to co-operation and the need for satisfactory guarantees with railway loans, adding that the Chinese had themselves told him of the special Agreement with ourselves regarding the Canton-- Hankow Railway.

The agent of an American bank at Shanghae is at present in Peking, and, in view of the fact that the capital of this bank is said to be to a large extent in Belgian hands, I took the opportunity to say to Mr. Rockhill that I was certain the American Legation would not lend the protection of its name to a Belgian coucern.

[2065 m- -7]

* Memorandum by Mr. Campbell, January 17, 1909.

445