CO129-361 - Public Offices - 1909 — Page 385

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C.O 17226

[This Document is the Property of His Britannic Majesty's GovernRoft.1

CHINA RAILWAYS.

CONFIDENTIAL.

TRE MAY 09.

383

[May 1.]

SECTION 2.

[16690]

No. 1.

Telegrams from and to Peking.-(Communicated by Mr. C. S. Addis, May 1, 1909.)

(1.)

Telegram received from Peking, May 1, 1909.

E. G. HILLIER had interview to-day (with) Chinese negotiator, who proposes the following modification: clause 14, after "representative" read "who shall, more- over, two days previously issue in duplicate a certificate (of) stating (that) clearly- the object of the fund to be drawn-handing one copy to the bank and one copy to the Auditor." In addition to foregoing they will give official despatch stipulating Auditor will have the right to satisfy himself by reference to General Manager and [or] Accountant's department that requisition is in order; if not in order, Auditor may inform bank accordingly, who in that case may defer payment until Auditor satisfied. With reference to foregoing subject, to wording of despatch, in our opinion it is satis- factory, and British Minister approves. Telegraph immediately may we negotiate on this basis. Important we should have a reply Sunday. With reference to foregoing, Chinese also wish to negotiate Hankow-Szechuan Railway Loan on same terms. Have we your authority to do so on the basis of Anglo-French-German participation ? Communicate to Foreign Office.

(2.)

Telegram received from Peking, May 1, 1909.

Referring to our telegram of 1st, strictly speaking, Chinese position is they offer Hankow-Szechuan Railway to Hong Kong and Shanghae Banking Corporation now on terms proposed, but are prepared to entertain German participation Hankow- Szechuan Railway and [or] British participation Hankow-Canton Railway; they have suggested Hankow-Canton Railway all British, Hankow-Szechuan Railway all German.

(3.)

Telegram dispatched to Peking, May 1, 1909.

Referring to your telegram of 1st, first telegram, we agree that the proposed modification clause 14 appears to afford sufficient guarantee for the proper employment of the loan funds, and you are therefore authorized to negotiate Hankow-Canton Railway Loan on this basis; you are also authorized negotiate Hankow-Szechuan Railway on same terms on the basis of Anglo-French-German participation. Referring to your telegram of 1st, second telegram, we understand that British claim to appoint English engineer Hankow-Canton Railway whole line is not As regards Hankow-Szechuan Railway, disputed by either French or Germans.

we cannot ignore Chinese Central Railway and French; we therefore suggest divide whole line Hankow-Chengtu into three sections, with English, German, French engineers respectively. For your information, stamp on foreign bonds now 11. instead of 10s.

[2264 a-

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