CO129-361 - Public Offices - 1909 — Page 213

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

C.O.

15128

CHINA RAILWAYS.

CONFIDENTIAL.

[13241]

No. 1.

MAY 09

{April 7.]

SECTION 1.

Messrs. Pauling und Co. to Foreign Office.-(Received April 7.)

(Private and confidential.) Sir,

26, Fictoria Street, Westminster, April 6, 1909.

I AM instructed to inform you that we are in receipt of cables from our repre- sentative, Lord ffrench, informing us that immediately on the Chinese Government's acceptance of the offer of the German Asiatic Bank to provide a loan of 3,000,000l. for the northern section of the Canton-Hankow Railway, on what are known as "Tien-tsin- Pukau terms, the said bank at once offered to provide an additional loan for the construction of the Hupeh section of the Haukow-Szechuan line.

Lord ffrench was informed of this fact by the Chinese authorities, who, at the same time, expressed their willingness to receive an offer for the same loan from him, provided the offer was not coupled with "contract conditions."

Lord ffrench, however, expressed the opinion that, were we to make an exceptionally favourable offer for this loan, coupled with a contract, there was a chance of its acceptance.

We have, therefore, in conjunction with our friends in Brussels and Paris, made what is undoubtedly an exceptional offer for a loan coupled with a contract for the construction of the Hupeh section of the Hankow-Szechuan line, for which our engineers have now completed their estimates, and we consider it our duty to inform His Majesty's Secretary of State of the step we have taken in case he may deem it an opportune moment to cable instructions to His Majesty's Minister at Peking to support our efforts against German competition.

We are unaware of any other British offer having been made in connection with the line in question.

I have, &c.

(For Messrs. Pauling and Co. (Limited)),

(Signed) JNO. SCOTT, Secretary.

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