[B]
[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[9078]
No. 1.
[March 8.]
SECTION 1.
Sir J. Jordan to Sir Edward Grey.-(Received March 8.)
(No. 78.) Sir,
Peking, February 17, 1909. WHILE preparing the draft Agreements for the Canton-Hankow Railway Loan, which were mentioned in my despatch No. 61 of the 5th instant, Mr. Bland informed me that the Grand Secretary's delegates affected not to believe that I was supporting him in requiring a proper measure of control over expenditure by the Chief Engineer, and to remove any misconception I instructed Mr. Campbell to attend the next discussion with Mr. Bland and put my views clearly before them.
The proceedings of the Grand Secretary throughout appear to me to be neither presence of represen- businesslike nor considerate. I must conclude from the continued tatives of Belgian, German, and Japanese financial interests, whose arrival in Peking coincided more or less closely with the commencement of Mr. Bland's negotiations, and from a number of other indications, that his Excellency has made up his mind to reduce to the smallest dimensions the sufficiently attenuated advantages which he con- ceded in return for the 1905 Loan. In the discussion with Mr. Bland there has been no trace of proper recognition on the part of the Delegates of the services rendered to his Excellency, and on looking over the past correspondence connected with this matter, I have been struck with the open ingratitude of his bearing towards us and the more than doubtful good faith exhibited by him from the beginning. It was necessary that he and the Delegates should know that I was not disposed to tamely endure any diminution of the slender preferential rights which were our quid pro quo for the loan, and that a mere financial transaction which would hand over a large sum of money to Chinese officials to spend as they please was not contemplated under the arrangements of 1905, and was not favoured by myself.
As you will see from the inclosed Memoranda, Mr. Campbell put my views plainly before the Delegates on the 6th instant, and Mr. Bland left with them two draft Agreements, one for construction by contract and the other based on the Tien-tsin- Pukow Loan Agreement. On the 8th the Delegates informed Mr. Bland that the Grand Secretary had decided not to discuss a construction contract, and on the 11th they gave him a counter-draft, changing the Tien-tsin-Pukow terms in some important features, the essential objection to which is that the conditions relating to the Chief Engineer do not give him authority to check expenditure. Mr. Bland was unable to obtain any modification, and with my concurrence he told the Delegates on the 13th instant that the British and Chinese Corporation could not accept these final proposals. They announced their intention of inviting at once offers from other quarters, but at the same time admitted full cognizance of their obligations to inform me before accepting other proposals. When Mr. Bland suggested a personal conference with the Grand Secretary, he was told that the latter would refuse an interview, and would also decline to discuss the question with me directly.
Yesterday I heard from Mr. Fraser that the Grand Secretary had telegraphed at length to him complaining that Mr. Bland would not conform to the terms of the despatch of September 1905, and stating that negotiations had been broken off because he could not consent to the demand relating to the Engineer's certificate, which, he said, "touched on China's railway rights."
I called at the Wai-wu Pu yesterday afternoon and saw Mr. Liang Tun-yen, who was formerly employed by the Grand Secretary at Hankow, and is said to enjoy his I explained the difficulty at length, and left with him a Excellency's confidence. Memorandum, of which a copy is inclosed, summarizing as briefly as possible the I gathered from Mr. Liang, who had already essential features of the present situation. been consulted by the Grand Secretary, that Mr. Bland was considered to be exacting, and that in the Chinese view, as the Chinese Government guaranteed the loan and the interest, it was no concern of the lenders how the money was spent.
I endeavoured to disabuse Mr. Laing of this error, and to convince him that we were only asking to be assigned to the Chief Engineer, who was not mentioned in the
[2193 h-1]
B
658
No comments yet.
Private notes are available after approval.