CO129-361 - Public Offices - 1909 — Page 535

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The United States Government asked for an expres-

sion of our views in regard to participation of America

in the Hankow Szechuen line as a report of the arrange-

ment recently concluded between German, French and Bri-

tish groups had reached Peking and American capital had

expressed the wish to participate.

The position of the question was explained to the

Ambassador in a Memorandum which was handed to him on

the 8th. instant, and in which it was also pointed out

that His Majesty's Ambassador in Washington had in Oc-

tober 1905 verbally informed the United States Govern-

ment that as it must be assumed that American capital-

ists did not desire to participate the French and Bri-

tish groups had decided to proceed in the matter. To

this course no objections were raised at the time, and

the American Embassy in London had moreover been in-

formed that the offer made by the Americans must be re-

garded as having lapsed.

I explained in communicating this Memorandum that

as far as the British financiers were concerned it was

clear they were entitled to act independently and in-

ง

deed they could not be expected to do otherwise after

what had passed, at the same time nothing was further

from our intention than to prejudice any obligations or

rights existing between China and the United States.

With regard to the agreement now signed it is well

known that this was only reached after protracted and

difficult negotiations and anything which would endanger

its conclusion would be viewed with much concern by His

Majesty's Government. You should therefore express

our earnest hope that the United States Minister at

Peking may be instructed not to make any difficulties

as regards the issue of the Imperial Edict of ratifica-

tion, and add that we would suggest that the recently

formed American group should place themselves in com-

munication with the German, French and British banks

concerned, in regard to any future loan arrangements in

which they may desire to participate.

clear