C.O.
17226
This Document is the Property of His Britannic Majesty's Government.
CHINA RAILWAYS.
CONFIDENTIAL.
[16908]
No. 1.
RECO Rec 21 MAY 09
[May 4.]
989
SECTION 4.
Telegram received from Peking.-(Communicated by Mr. C. S. Addis May 3, 1909.)
REFERRING to your telegram of the 1st, we have informed Chinese we are prepared to negotiate Hankow-Szechuan Railway Loan on joint account French on basis proposed they will prepare draft despatch immediately.
We have informed Deutsch-Asiatische Bank are prepared to give them equal participation Hankow-Szechuan Railway in return for corresponding Anglo-French participation in Hankow-Canton Railway, Chief Engineer of latter to be British. Deutsch-Asiatische Bank object to last condition on the grounds relative situation has changed, but they are telegraphing for instructions Berlin. We recommend com- municate immediately with Deutsch-Asiatische Bank, Berlin, in order to arrange matter. Chinese will await German reply before proceeding with final negotiations. With reference to foregoing, amount required for Hankow-Canton Railway 3,000,000l. plus 500,000l. redeem Belgian bonds, amount required for Hankow-Szechuan Railway 2,000,0001, or up to 3,000,0001, if security sufficient; consequently loan only sufficient for Hupeh (Yang-tsze Provinces) section.
In our opinion, since we offer participation to French, they should agree to German Engineer, Hupeh (Yang-tsze Provinces) section in exchange for promise Freuch Engineer Szechuan (Yang-tsze Provinces) section when constructed. Important we should have a reply Tuesday.
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