CO129-360 - Public Offices - 1909 — Page 688

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

C.0.

10492

CHINA RAILWAYS.

CONFIDENTIAL.

[6925]

No. I.

[February 19.]

REG 25 MAR 09. 683

SECTION 1.

Mr. Bland to the British and Chinese Corporation, London.~(Communicated by Mr. Addis, February 19.)

(Telegraphic.)

Peking, February 16, 1909. HANKOW-CANTON Railway. Referring to my telegram of the 9th, there is a sudden change in the attitude of Chang Chih Tung, who definitely refuses the British and Chinese Corporation the British Minister's conditions. Am informed he expects to obtain British financial, assisted by Yokohama Specie Bank.

I have seen the Minister on the subject, intimating without diplomatic intervention we are at a deadlock.

It is evident intention is to make arrangements enabling Chang Chih Tung fulfil obligation Japanese, who are distinctly adverse to our interests.

Mr. Bland's telegram of the 9th February referred to in the foregoing.

Hankow-Canton Railway meeting yesterday. Are informed Chang Chih Tung definitely decided against construction contract. This is partly due to influence of the Board of Communications, anxious to retain opportunities, partly Japanese insisting upon retain advantages the British Consul at Hankow Agreement.

Under the circumstances we must adopt other alternative. Chinese are disposed to come to an agreement satisfactory powers Engineer-in-chief approved by the British and Chinese Corporation. Referring to your telegram of the 5th, they agree to agency. It will not be possible to secure control of funds under accountant similar to Canton- Kowloon Railway, because M. Cordes prepared to offer Tien-tsin-Chinkiang Railway terms and conditions.

I am of opinion if you leave it in my hands can arrange to your satisfaction financially, but in order to better secure control of loan funds it would be necessary for the British Government adopt support definite action.

Chinese will send draft of Agreement on Thursday. It is very important if it is satisfactory to be able to quote price without delay because of situation uncertain.

[2150 -1]