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[This Document is the Property of His Britannic Majesty's Government]
CHINA RAILWAYS.
CONFIDENTIAL.
REG 21 MAY 09
[April 29.]
SECTION 2.
382
[16280]
(No. 79.)
No. 1.
Sir Edward Grey to Sir J. Jordan.
(Telegraphic.) P.
Foreign Office, April 29, 1909. ACCORDING to the most recent telegrams from the agent of the Hong Kong and Shanghae Bank at Peking, it would seem unlikely that the Chinese Government will consent to a modification of the German Loan Agreement for the Hankow-Canton Railway in a manner to secure any effective control over the expenditure of the loau funds.
We shall shortly be confronted with the necessity of deciding at once whether to stand altogether aside or join with the Germans on Tien-tsin-Pukow terms, should these fears be realized.
If it turns out that there is no middle course, there is the question as to which of these alternatives we should adopt.
I should be glad of your opinion in the matter.
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