CO129-362 - Public Offices - 1909 — Page 266

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

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CHINA RAILWAYS.

CONFIDENTIAL.

[28358]

No. 1.

[July 27.]

SECTION 2.

Sir Edward Grey to Mr. Bryce.

(No. 199.) Sir,

Foreign Office, July 27, 1909. THE American Ambassador told me on the 23rd instant what had passed at Peking respecting Chinese railways. As I already know, President Taft had intervened urgently with the Prince Regent, and it was understood that 123 per cent. was to be added to the loan, which was admittedly insufficient as it stood, and this would enable the American group to have the share which they had claimed.

I said I had no doubt that an agreement could now be made, and I

very much regretted that the Americans had not made known their intentions when the recent difficulties as to the Chinese railways began. If I had had any idea that they intended to abandon their attitude of indifference, I should not only have agreed to their participation originally, but I should have welcomed it. Moreover, had I known that the American group were going to claim their rights with regard to the Hankow-- Szechuen line, and that they were willing to act in partnership with the British group, I should probably have advised our own people to stand firm on their rights and work in partnership with the Americans. As it was, however, the complications in con- nection with the Canton-Hankow railway had made it desirable that our people should come to terms with their competitors in China, and when the Americans intervened at the last moment it was impossible for me to throw over our own people by ignoring the arrangements they had made. The American action had placed us in a difficult position.

He

The Ambassador replied that he had felt the difficulty in which we had been placed by the appearance on the scene of the Americans at the last moment. thought the Americans were themselves partly responsible for this difficulty, and he had already said that he could not understand the silence they had so long maintained. He would let the President know personally the view I had expressed, though he thought our position was quite understood at Washington. The Ambassador told me that President Taft took a very direct interest in Eastern affairs, owing to the fact that he had been in the East and was auxious that Americans should participate in Chinese business. The assertion of American interest was therefore due to the change in the United States Presidency.

[2336 dd -2]

I am, &c.

E. GREY.