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C.O
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[This Document is the Property of His Britannic Majesty's Government.
CHINA RAILWAYS.
CONFIDENTIAL
[27968]
No. 1.
Race 10 AUG C
[July 23.
SECTION 2.
Telegram from Peking-(Communicated by Mr. C. S. Addis, July 23, 1909.)
Peking, July 22, 1909. UNITED STATES President has telegraphed personally Regent, who has instructed Wai-wu Pu to satisfy American wishes. As American chargé d'affaires suggested that arrangements might be possible by increasing amount of loau, we stated that we were prepared to recommend following arrangements :---
Firstly, amount assigned to Hankow-Szechuan Railway to be increased by 500,0001, increasing total loan to 6,000,000%.
Secondly, in consideration of agreement being entered into between Anglo-French- German and American banks undertaking to give American banks a participation of 1,500,000, with material equivalent half Hankow-Szechuan Railway portion, American Government to immediately withdraw protest and allow ratification by Imperial edict and signature agreement 6,000,0001. by Anglo-French-German banks without further alteration.
Foregoing proposal received concurrence of Chinese and provisional concurrence of American chargé d'affaires, hut latter has received since then instructions insisting that participation must include all rights with regard to materials, engineer, anditor, and any other benefit which would naturally accompany one-fourth interest in entire loan, placing America on same footing as signatories, as this precludes all prospects compromise. As it is certain Chinese Government cannot contest further in the face of American President's action, our position is hopeless unless actively supported our Government. Demand of Russia probably to be followed by Japan demonstrates the increasing danger of present situation, which must result in collapse of loan unless prompt steps are taken.
Advise the foregoing to Deutsch-Asiatische Bank, Banque de l'Indo-Chine.
[2336 -2]
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