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2
Accepted in principle, subject to the confirmation by the Consortium für Asiatische Geschäfte, under the condition that the Chinese Central Railways (Limited) join the English group, and with the following addition in No. 7 (a) after the words "other groups"; "either alternatively or as the interests of the other groups could be shown to predominate.” All details of this Memorandum to be determined by a meeting of the concerned parties to be held shortly.
Direction der Disconto Gesellschaft, Berlin, March 1, 1909.
[8685]
No. 2.
(Signed)
ERICH. SCHOELLER.
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Chang Chih Tung will conclude on these terms and conditions without delay or abandon enterprise.
They say he intends to contract for portion of line, but will not refer to in the Loan Agreement.
The Banque de l'Indo-Chine inform me you have arranged for the Deutsch- Asiatische Bank participation in on the understanding Canton-Kowloon Railway terms and conditions to be minimum acceptable; does this exclude support of construction contract, if obtainable ?
I am of opinion, in the absence of competition, Canton-Kowloon Railway terms and conditions will be eventually obtainable for future business, but with regard to Hankow--Canton Railway there are difficulties owing to position of Japanese. If Chang Chih Tung cannot raise loan effect will be good.
Keep us advised telegraph instructions as quickly as possible.
Papers communicated by Mr. C. S. Addis, Murch 5, 1909.
(1.)
(Telegraphic.)
China Bank, Berlin, to Mr. Addis.
Berlin, March 3, 1909. OUR Syndicate agrees in principle with the views as laid down by your conversation with Schoeller and Erich.
Erich and Rehders have been appointed to join the meeting to be fixed at Brussels earliest possible after this week.
Our offer Peking will be withdrawn immediately upon an understanding having been arrivedat. Should meanwhile our Peking negotiations be concluded, we will offer business to new Syndicate for joint dealings.
(Telegraphic.)
(2.)
Mr. Addis to China Bank, Berlin.
[Undated.]
British and Chinese Corporation confirm Memorandum of 26th February. Keswick and Addis appointed representatives. Chinese Central meet to-morrow. It is proposed representatives should meet London, Monday, 15th March. French agree. Hope you will agree also.
Bland has just wired Chang Chih Tung offers conclude loan with us Tien-tsin- Pukow terms. We have refused. Hope, therefore, you will support us in affirming Canton-Kowloon terms.
(Telegraphic.)
(3.)
Mr. Addis to Deutsch-Asiatische Bank, Berlin.
March 4, 1909.
Your telegram of 3rd. Anglo-Franco-German entente générale having been already established in principle, we regret you do not see your way to suspend Peking negotiations pending meeting. In any case, we would strongly urge you to negotiate only on Canton-Kowloon conditions, as agreed Article 6.
(Telegraphic.)
(4.)
British and Chinese Corporation, Peking, to Mr. Addis.
Hankow-Canton Railway.
March 3, 1909.
At the request of Chang Chih Tung, met Delegates to-day. They state that Canton- Kowloon Railway terms and conditions absolutely impossible. They offer Tien-tsin- Chinkiang Railway terms and conditions, requesting the British and Chinese Corporation name alternative price of 44 per cent., 5 per cent., loan before Friday. They state that
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