This Document is the Property of His Britannic Majesty's Government.
CHINA RAILWAYS.
C.O. 15433 [February 13.]
CONFIDENTIAL.
(5922)
SECTION 1.
RECO
FG 7 MAY OC
No. 1.
(No. 43.)
Sir J. Jordan to Sir Edward Grey.-(Received February 13.)
(Telegraphic.) P.
CANTON-HANKOW Railway.
Peking, February 13, 1909.
The telegram to Pauling and Co., referred to in your telegram No. 29 of the 11th instant, was sent by Lord ffrench under the impression that Japanese intrigues wore responsible for the Chinese opposition to the scheme for construction by contract. The telegram was sent without my knowledge, and I have no direct evidence that the statement about the Japanese attitude is correct.
Lord french has sent a further telegram to Paulings, written after an interview with the Japanese agent, in which he advises the British and Chinese Corporation to telegraph to their representative here a formal withdrawal of the Canton-Kowloon terms. In doing so he has acted in direct opposition to my advice, for my expressed opinion throughout has been that the success of the negotiations depends on the two alternatives-construction by a British chief engineer vested with satisfactory powers of control, or construction by contract-being fairly laid before the Chinese for their unhampered selection. I have always maintained that it is highly undesirable for the respective agents of the British Companies and of the Japanese to undertake any direct negotiations between themselves.
With your approval, I propose to approach the Japanese Minister and ask him to use his influence to check interference on the part of the Japanese agent. I might point out to him that the Japanese position is not affected by the choice which the Chinese may ultimately make between the two alternatives above mentioned, and that the maximum the Japanese can claim under the Agreement of 1905 is that half of the engineers should be of that nationality,
[2150 n-1]
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