CO129-361 - Public Offices - 1909 — Page 102

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

CHINA RAILWAYS.

CONFIDENTIAL.

[10914]

(No. 96.) Sir,

100

C 0.

12734

[March 22.]

SECTION 2.

IRECO

Rec? 14 APR 09

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received March 22.)

Peking, March 2, 1909.

I HAVE the honour to inclose copies of further correspondence relating to the Canton-Ilankow Railway loan, in continuation of my despatch No. 78 of the 17th February.

In a letter of the 21st February, his Excellency Liang Tun Yen communicated the Grand Secretary's reply to my Memorandum of the 16th February. In this he took a rather high tone, and insisted that Mr. Bland's requirement respecting the Chief Engineer's certificate was out of the question, and that other countries with whom he was negotiating were not so exacting. Out of consideration for us, however, he expressed his willingness to reopen negotiations with Mr. Bland, provided that the Chief Engineer's certificate was dropped and that, the main conditions of an agree- ment having been settled in the two days, Mr. Bland's offer should be opened with other sealed tenders within the three days following.

I had reason to believe that his Excellency was not strictly candid in his remarks about negotiations with other countries. According to my information, the German agent, who is well aware of our preferential position, is not anxious to disclose his terms until he has seen the British and Chinese Corporation's, and the only negotia- tions which could "show promise were those with the representatives of Vickers. Maxim, which are referred to in my telegram to you, No. 50 of the 24th February. I concluded, therefore, that his Excellency's stiffness was largely assumed for bargaining purposes, but I thought it advisable, nevertheless, when I saw Liang Ta-jôn next day to take exception to his minatory style of correspondence. His language was not what we had a right to expect considering the nature of his obligations to His Majesty's Government. And in my written answer of the 23rd February I again dwelt on the extremely favourable character of the transaction of 1905, on which our preferential claims rested, gave my reasons for supporting Mr. Bland in the question of the Chief Engineer's certificate, and requested a definite admission of our right to the refusal of the lowest bond fide offer, if that offer was not made by British financiers. Although the Grand Secretary's reply of the 27th February contains no admission of the right of a refusal of the lowest offer, it is couched in very friendly language, and shows such a more reasonable frame of mind that I have encouraged Mr. Blaud to see his Excellency Liang Tun Yen with the object of finding some acceptable basis on which to renew the negotiations.

J. N. JORDAN.

I have, &c. (Signed)

Inclosure 1 in No. 1.

(Translation.) Sir,

Liang Tun-yen to Sir J. Jordan.

Peking, February 21, 1909.

I HAVE the honour to inform your Excellency that I sent your Memorandum to Chang Chung-tang for perusal, and that I have now received the following reply from the Grand Secretary :-

"I have carefully studied the Memorandum of his Excellency the British Minister, which you were good enough to send me, and I have also received a telegram from Mr. Consul-General Fraser, of Hankow, of which I now beg to inclose a copy for your information.

"In arranging the redemption of the Railway Concession I received the greatest consideration from Mr. Fraser, and as a token of any gratitude made the understanding laid down in my official communication to him. If in the recent negotiations every- thing had been done in accordance with the terms of that despatch, the matter was one which could have been arranged with the greatest ease, since the mam principles

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