CO129-361 - Public Offices - 1909 — Page 249

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

CHINESE RAILWAYS.

CONFIDENTIAL.

C.O.

15433 (February 21.]

SECTION 1

[7550]

RECR

WXEG2 7 MAY OC

No. 1.

Sir J. Jordan to Sir Edward Grey.- (Received February 24.)

(No. 50.) (Telegraphic.) P.

Peking, February 24, 1909. WITH reference to Messrs. Vickers, Maxim's complaint which forms the subject of your telegram No. 35 of yesterday's date, I learn that J. S. Morgan & Co., a London firm connected with Vickers, Maxim, are engaged in negotiations with Chang Chih-tung, through the medium of a Shanghae man of the name of Birchal. The question at issue is a loan, of which part is to be devoted to the Canton-Hankow Railway and part to certain orders of naval material to be supplied by Vickers, Maxim. The amount of the loan is 10,000,000%.

The past history of Birchal does not recommend him as a proper agent in such a transaction. Mr. Donaldson, the representative of Vickers, Maxim, is quite aware of this, but excuses himself on the ground that he is compelled by his instructions to co-operate with him.

I would suggest that Vickers, Maxim be warned that their interference in matters which do not come within the legitimate scope of their business is prejudicial to other British interests. I have spoken to Mr. Donaldson in this sense and pointed out to him that he will endanger his claim to our assistance in naval matters by persisting in a course of action of which the effect is to embolden Chang Chih-tung to evade his obligations in regard to the Canton-Hankow Railway.

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