CO129-360 - Public Offices - 1909 — Page 545

py.

(

HANKOW CANTON RAILWAY LOAN NEGOTIATIÆ

660)

540

C.O.

7925

Memorandum by Mr. C. 8. Addis.

Acce Ree? 5 MAR 09)

The present position is as follows:-

1.

By an exchange of notes the Governments of

England and France have declared themselves opposed

to their nationals making railway loans to China un-

less accompanied by suitable guarantees that the money

will be devoted to the object for which the loan was

ostensibly raised.

2. The Germans, having been refused participa-

tion in the Anglo-French Group, are now competing with

them for the Hankow-Canton Railway Loan by an inde-

pendent offer to the Chinese of Tientsin-Pukow

terms in which the control of the railway funds is

vested in the Chinese Director General.

3. The Anglo-French Group are accordingly faced

with the alternative of either coming to terms with

China by accepting Tientsin-Pukow (non control) terms

or of coming to teras with the Germans by admitting

them to participation.

4. The German and French Groups having both ex-

pressed