CO129-361 - Public Offices - 1909 — Page 173

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Excellency Chang Chih-tung and Mr. Fraser) in the

8th Moon of the 31st year of Kwang Hsu, (September

1905) and twice notified its withdrawal stating defi-

nitely that the Corporation had decided not to have

anything to do with the Canton-Hankow and Szechuan-

Hankow railway loans, and that China could open

negotiations with other countries on the matter.

The tone of the language used by the Corporation

was firm and decisive. Under these circumstances

we turned to the German Bank and concluded an agree-

ment with it. We have therefore done nothing what-

ever in violation of the above-mentioned understand-

ings nor have we shown any slight to England in re-

gard to this question.

"The reason of our turning to and concluding

an agreement with the German Bank was because the

British Corporation would not negotiate with us, and

not because we would not negotiate with them.

"The German Loan Agreement has been signed by

both parties and it is absolutely impossible to can-

cel

cancel it without a good reason.

"As regards the Szechuan-Hankow Railway Loan the

British Corporation declared that they had decided not

to have anything to do with it. Had it not been for

our specially great desire to uphold the friendship

of England we would have been justified in not con-

tinuing negotiations with the Corporation.

Although

we have been in treaty with other countries in regard

to this matter we have not yet come to any settlement.

If there are any other Banks in England which are

prepared to negotiate with us on the basis of the

understandings arrived at in the 8th Moon of the 31st

year of Kwang Hsu (September 1905) and to carry

through the negotiations with all possible despatch,

we are willing to discuss with them, but if they

should desire to get more than what is contemplated

in the understandings we should be quite unable to

entertain their proposals".

Besides replying to the British Minister in the

above sense this Department requests you to communi-

cate this telegram to the Foreign Office.

Wai-wu Pu.