[This Document is the Property of His Britannic Majesty's Government.] END
CHINA RAILWAYS.
CONFIDENTIAL.
[22662]
No. 1.
C.O.
22029
RECR
[June 16.]
SECTION 2.
Ree2 2 JUL not
Telegram received from Peking, June 16, 1909.—(Communicated by Mr. C. S. Addis, June 16, 1909.)
WAI-WU PU, under pressure from United States Government, have requested Chang Chih Tung defer ratification of loan agreement until American participation arranged with contracting banks. Chang Chih Tung has refused reopen negotiations, and our opinion is that to alter initialled agreement would inaugurate most serious precedent. At the same time, it must be recognised that Wai-wu Pu seriously embarrassed, in consequence of their oversight of American claim; and in order to release Wai-wn Pu from a difficult position and put an end to dangerous impasse, Cordes, M. Casenave, E. G. Hillier strongly recommend you to authorise us, with concurrence Chinese Government, come to an arrangement with America. Since American claim is restricted to Hankow-Szechuen Railway, we suggest offer them one quarter financial participation in 2,500,000l., say 600,000, final agreement not to be altered. American participatiou to be provided by separate note. We understand they do not insist upon participation in materials. Telegraph reply immediately.
[2317 q-2]
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