CO129-362 - Public Offices - 1909 — Page 26

1.

This Document is the Property of His Britanni Majesty's Government.]

23208

CHINA RAILWAYS.

CONFIDENTIAL.

Wrce

26

[June 11.]

SECTION 1.

[21746]

(No. 90.)

(Telegraphic.) P.

No. 1.

Sir Edward Grey to Mr. Bryce.

HANKOW-SZECHUAN Railway.

Foreign Office, June 11, 1909.

I have repeated Sir J. Jordan's telegram No. 105 of the 10th June to you. The United States Ambassador, under instructions from his Government, drew my attention on the 3rd instant to the undertaking given in 1903 (see "China," Part XLVI, No. 46) by China in regard to the Hankow-Szechuan Railway, and referred to the enquiries made by His Majesty's Ambassador at Washington on the 25th July and the 30th September, 1905, as to whether participation in the enterprise was desired by American capitalists. In reply to these enquiries it was stated that the matter had been made public, but that American groups had not as yet intimated their intentions. These replies, Mr. Whitelaw Reid stated, are not construed by the State Department as indicating that American capital has relinquished its right of participation.

The United States Government asked for an expression of our views in regard to participation of America in the Hankow-Szechuan line, as a report of the arrange- ment recently concluded between German, French, and British 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 October 1905, verbally informed the United States Government that, as it must be assumed that American capitalists did not desire to participate, the French and British 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 informed that the offer made by the Americans must be regarded 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, indeed, 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 ratification, and add that we would suggest that the recently formed American group should place themselves in communication with the German, French, and British banks concerned in regard to any future loan arrange- ments in which they may desire to participate.

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