CO129-362 - Public Offices - 1909 — Page 41

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

[B]

CHINA RAILWAYS.

CONFIDENTIAL.

[23683]

No. 1.

C.O.

39

23208

[June 24.]

12 W

SECTION 1,

Dear Sir Francis,

Mr. Addis to the Foreign Office.-(Received June 24.)

31, Lombard Street, London, June 24, 1909. I ENCLOSE copies of the telegrams which passed yesterday between Hillier, Urbig, and myself. Simon has also been kept au courant by wire.

It would appear from Urbig's last telegram that the German financiers are not so well disposed to American participation as their Government has declared itself to be. I have no doubt, however, that the German Government will find means to impose its will

upon the financiers.

Yours truly,

C. S. ADDIS.

Inclosure 1 in No. 1.

Dear M. Urbig,

Mr. Addis to M. Urbig.

31, Lombard Street, London, June 23, 1909. REFERRING to your letters of the 18th and 19th instant, I am convinced, and M. Simon agrees with me, that the only way to arrive at a practical solution of our difficulties with the Americans is by means of a conference between the representatives of the four groups, to be held either in London or on the continent, as may be arranged. We have urged our Government to make representations at Washington to this effect, and I hope you will do the same with yours. We are agreed to American participation in principle, but in a case of this kind everything depends upon the details, such as what proportion America has to bear of the preliminary expenses, &c., and this can only be arranged at a personal conference.

In my opinion the discussion should be limited to the Hankow-Szechuen line, in which alone America has any status, leaving future cases to be decided as they arise.

The Russian demand supplies a fair argument. If America is admitted to future participation, it will be difficult to refuse Russia and, perhaps, Japan. I agree with what you say as to internationalisation, but I am sure you will see the impossibility of discriminating against the American portion of the loan. I think, therefore, that your argument must be carried to its logical conclusion and applied to the loan as a whole.

I have a letter from M. Simon to-day in which he advocates the conclusion of our general Anglo-German-French Railway and Inter-Bank Agreements, the drafts of which were sent to you on the 27th May last. M. Simon is of opinion, and I agree with him, that our position, vis-d-vis the Americans, would be fortified by the final signature of these agreements prior to the holding of the proposed conference between the four groups. I shall be glad to have your opiniou upon this point.

Yours truly,

C. S. ADDIS.

·Inclosure 2 in No. 1.

Telegram received from Peking June 23, 1909.

REFERRING to your telegram of the 17th we anxiously await reply to our telegram of the 16th June. Our opinion is American position here will be strengthened by delay. It is very desirable settle business promptly.

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