CO129-360 - Public Offices - 1909 — Page 585

લિગ દેશ

(Telegraphic.)

2

Inclosure in No. 1.

Lord french to Messrs. Pauling and Co.

CANTON-HANKOW Railway.

Peking, February 10, 1909.

The greatest difficulty we have to encounter has been caused by Japanese. There is great danger (of) Chinese acceptance Canton-Kowloon Railway terms in consequence of Japanese intrigues. Chinese admit forced to refuse contract, we have no doubt owing to the Japanese. Seen Japanese, who suggest as price(s) support participation all construction contract(s) China. Present position is such that I cannot obtain contract unless Japanese settled. Please authorize me (to) deal with subject to confirmation by yourself. You will remember that Japanese have right(s) one-half engineer(s) Canton-Hankow Railway according to the Agreement 1905. Hsu Shih Chang, Viceroy of Manchuria, has been appointed the President of the Board of Posts and Communications.

Keep this quite secret. Sir John Jordan has received instruction to confer the United States' Minister at Peking with regard to the position of Japanese Manchuria.

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

580

C.O. 8782

[February 10.]

SECTION 1.

REC

No. I.

REGP 12 MAR 05

CHINA RAILWAYS.

CONFIDENTIAL.

[5518]

Sir J. Jordan to Sir Edward Grey.--(Received February 10.)

(No. 32.) Sir,

Peking, January 19, 1909. I HAVE the honour to inclose copies of correspondence relating to railways in Anhui Province, which has been sent to me by Mr. Bland. The proposal made to Mr. Bland, that a silver loan of 3,000,000 taels (350,0001.) should be made by the British and Chinese Corporation to an intermediary native bank, so that the provincial Railway Company should not incur the odium of borrowing from the foreigners, is interesting only as showing the methods and attitude of the Anhui gentry, who are apparently quite willing to borrow foreign money, soi-disant clandestinely, now that they find it impossible to raise Chinese capital for railway construction,

Mr. Bland's reply to this ingenuous proposition appears to me to have been a proper one.

I have, &c. (Signed)

Dear Sir,

Inclosure 1 in No. 1.

Mr. Tsui to Mr. Bland.

J. N. JORDAN.

Custom-house, Shanghae, January 2, 1909. I BEG respectfully to inclose you herewith a copy of a primary Agreement for a loan of 3,000,000 taels of silver between the Pao Hing Company and the Anhui Railway Company for constructing the railways in that province.

As the Pao Hing Company is going to fulfil the Agreement by making a foreign loan with any foreign capitalist, I, being the best friend to the Chief Manager and the Directors, am now requested to bring the matter into your consideration.

The Chief Director of the Anhui Railway Company, Taotai Chow Yao-ming, wishing to avoid the name of having had a foreign loan by the said Railway Company, has recently made the Agreement inclosed with the Pao Hing Company for the said loan and allows the latter to make any foreign loan under its own name. By means of this the Anhui Railway Company may be free from the name of having had a foreign loan, and the Pao Hing Company, being backed up by the said Railway Company, is always responsible for the refund of the said loan and the payments of interest.

With regard to the difference of the loan made-i.e., the Pao Hing Company made the loan in sycee and the foreign loan might be in sterling-the Pao Hing Company, who is allowed to have special benefit in the said railway, is responsible to refund the loan in sterling at current rate, in spite of any difference in exchange.

I sincerely hope that the said loan will be successfully made by your Corporation and the Pao Hing Company. If you are in favour of the same, I shall feel much obliged to receive your instructions at your earliest convenience. Otherwise you are requested to send back the inclosed copy with your kind reply.

I have, &c. (Signed) TSUI PI TA.

Inclosure 2 in No. 1.

Mr. Bland to Mr. Tsui.

My dear Mr. Tsui,

Peking, January 9, 1909. I AM obliged to you for your letter of the 2nd fustant, and for the proposal that the Corporation should undertake to raise a loan to the Pao Sing Bank for the construction of the Anhui Railway Company's railways.

I regret, however, that the conditions which you name are not such as I can submit to the Corporation. I have frequently discussed the question of the Wuhu

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