CO129-360 - Public Offices - 1909 — Page 695

C.O.

This_Document is the Property of His Britannic Majesty's Government.0492

CHINA RAILWAYS,

CONFIDENTIAL.

RECR [March E 25 MAR 09 690

SECTION 2.

[8391]

No. 1.

Sir,

British and Chinese Corporation to Foreign Office.-(Received March 3,)

3, Lombard Street, London, March 2, 1909. IN accordance with the request of His Britannic Majesty's Minister at Peking, we beg leave to hand you inclosed a copy of a telegram we have received to-day from Mr. Bland, our representative in Peking, dated Peking, the 1st instant.

We also beg leave to inclose copies of the recent telegrams which we have received from Mr. Bland; those referred to by him in his telegram of yesterday being marked (A) and (B).

We are, &c. British and Chinese Corporation (Limited),

(Signed)

W. KESWICK, Chairman.

(Telegraphic.)

Inclosure 1 in No. 1.

Mr. Bland to British and Chinese Corporation.

HANKOW-CANTON Railway.

Peking, March 1, 1909.

The British Minister informs me C. S. Addis visiting Paris arrange to admit the Deutsch-Asiatische Bank participation in all Railway Loans, including Hankow- Canton Railway, in order to secure Canton-Kowloon Railway terms and conditions.

Referring to my telegram of the 23rd, in consequence of the British Minister's conditions to Chang Chib Tung, Germans are not in a position to submit offers; for the same reason Chang Chih Tung now realizes financial loan unobtainable. Therefore, yesterday intimated prepared to reconsider construction contract.

Under no circumstances will Chang Chih Tung agree to Canton--Kowloon Railway conditions, including Chief Accountant.

The British Minister's conditions, referring to my telegram of the 24th, only refer to powers Engineer-in-chief.

Under the circumstances German participation will confer no advantage; on the contrary, will only complicate position, which was showing some signs of improvement; probably result construction contract financed by outsiders.

Suggest for consideration you should keep us informed of developments on your side, otherwise negotiations difficult.

The British Minister requests you to communicate this to the Foreign Office.

Inclosure 2 in No. 1.

Previous Telegrams received recently from Mr. Bland by British and Chinese Corporation.

[Those referred to in his Telegram of March 1 are marked (A) and (B).]

February 23, 1909.

HANKOW-CANTON Railway.

Chang Chih Tung definitely informs the British Minister will no agree to control of loan funds or engineer's certificate. Insists upon immediate firm offer based on his conditions. Intimates if we refuse others will agree to.

The British Minister, fearing German competition, anticipating on account of political exigencies it may be necessary though regrettable eventually concede financial loan. Inquires whether the British and Chinese Corporation are prepared to abandon conditions.

[2193 c-1]