CO129-362 - Public Offices - 1909 — Page 483

31859

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

Pcc 25 SEP 09

[August 31.]

CHINA RAILWAYS.

CONFIDENTIAL.

[32791]

No. 1.

481

SECTION 3.

Dear Mr. Greg,

Mr. Addis to Foreign Office.-(Received August 31.)

Hong Kong and Shanghae Banking_Corporation,

31, Lombard Street, London, August 30, 1909. SINCE I saw you on Saturday I have received the enclosed correspondence from the German and French groups.

I invite your attention to the Paris telegram to Peking of the 28th August, which appears to justify the hope I expressed, that our French friends would fall into line with us in making the rearrangement of the engineering sections on the whole line from Hankow to Chengtu a condition precedent to signing the agreement with the Americans. Their representative at Peking has now been instructed to act in conformity with the instructions given by us to Hillier.

I also enclose copy of a telegram from Hillier to the effect that the American Government has asked the Chinese Government to modify the Hukuang Loan Agreement in order to admit the American banks as signatories. I shall call upon you this evening with regard to this point, but, in the meantime, it may be as well to state that, in my opinion, there is no foundation for Hillier's suggestion that the American demand is merely a pretext in order to gain time for their market, which is unprepared for a loan issue.

Yours truly,

C. S. ADDIS.

Inclosure 1 in No. 1.

Mr. Hillier to Mr. Addis.

(Telegraphic.)

Peking, August 30, 1909. TELEGRAM of 28th August received. American Government now request Chinese Government consent to modification Loan Agreement in order to admit American banks as signatories. Do you think it possible this demand may be pretext in order to gain time for American market, which is unprepared? Our opinion is we should do all possible to throw responsibility for deadlock on Americans. It will place us in a very difficult position towards Chinese Government if negotiations fall through upon question of extension Ichang-Chengta. Advise Deutsch-Asiatische Bank, Banque de l'Indo-Chine.

(Telegraphic.)

Inclosure 2 in No. 1.

Mr. Addis to Mr. Hillier.

London, August 30, 1909. RE your wire of 30th August, in our opinion the only way out of the difficulty is for Chinese Government to grant preliminary contract for whole line Hankow- Chengtu, increasing amount of loan corresponding, and providing for division of engineering sections in terms of Addis-Straight memorandum, 28th July.

We have not communicated the two last sentences of your telegram to Banque de l'Indo-Chine and Deutsch-Asiatische Bank.

Cher Mr. Addis,

Inclosure 3 in No. 1.

M. de la Chaume to Mr. Addis.

15 bis, Rue Laffitte, Paris, le 27 août, 1909. EN réponse à votre télégramme de ce jour, je suis heureux de vous communiquer ci-joint copie de la dépêche que j'ai envoyée hier à M. Casenave et que je n'avais pas

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