CO129-361 - Public Offices - 1909 — Page 209

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

C.O.

15128

CHINA RAILWAYS.

CONFIDENTIAL.

REGE 5 MAY O

[April 6.]

207

SECTION 1.

[13112]

No. 1.

Minutes of a Meeting held at 15 bis, Rue Lafitte, at Paris, on April 2, 1909.-- (Communicated by Mr. C. S. Addis, April 6, 1909.)

THE following gentlemen were present:-

M. S. Simon and

M. Ullmann

Representing the French Group.

Mr. W. Keswick and

Mr. C. S. Addis

Representing the British Group.

Herr Urbig

Herr Erich and

Representing the German Group.

Herr Rehders

Mr. Carl Meyer and

Mr. G. Jamieson

Representing the Chinese Central Railways.

มุม

On the proposal of Mr. C. Meyer, M. S. Simon took the Chair.

The Chairman suggested that the negotiations should be resumed at the point at which they were broken off in London, and that the letter dated 20th March, 1909, by the Deutsch-Asiatische Bank, and signed by Messrs. Erich and Rehders, and addressed to Mr. C. S. Addis of the Hong Kong and Shanghae Bank should be taken as a basis of discussion.

Thereupon Mr. Rehders expressed his desire to make a preliminary statement, which he did by reading the same from written notes which he had. In the course of his remarks he explained that the German Group had already taken steps to ameliorate the conditions of the proposed Hankow-Canton Loan in the following respects (1) as to the audit, and (2) as to the book-keeper, and was sure to obtain the condition that "the gentry" should not interfere with the railway. He stated that the question was as to whether or not the French and British Groups were now prepared to participate in this loan as it stood. Mr. Rehders further stated that it was a condition to this participation by the three groups that the Hankow-Chengtu Loan should be signed at the same time.

Mr. Addis, in reply, asked what new circumstances had arisen which justified the German Group in making an entirely new proposal. He recited the various facts in the case, which led up to the present position. He reminded the meeting of the terms of the Protocol of the 26th February, 1909, and the provision in clause 6 of such Protocol, that in return for participation in the loan, the German Group agreed to withdraw their offer to the Chinese and to adhere, along with the Anglo-French Groups, to the terms which had been described as Canton-Kowloon terms of control, as a minimum. He stated that in the view of the British Group, the German Group, being assured of participation, had, by their Consortium, given an unqualified approval in principle of the terms of the Protocol. He referred to the fact that the British Group had, on the 4th March, 1909, refused the loan on the terms described as Tientsin-Pookow terms, when offered by them to the Chinese, and had com- municated this fact to the German Group without reserve. He took exception, therefore, to the action of the German Group in concluding a preliminary contract with the Chinese on the Tientsin-Pookow terms, on or immediately after the 6th March, 1909. He concluded his remarks by putting this question to the German Group:

"If, as a result of your further negotiations with the Chinese you are unable to modify the terms of your agreement with them so as to insure for the lenders control over the expenditure of the loan funds, are you prepared now to bind yourselves to withdraw from your agreement with the Chinese ?"

Mr. Urbig, in reply, dealt with the various facts in connection with the negotiations between the three groups, and stated that, whatever misunderstanding

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