[This Document is the Property of His Britannic Majesty's Government. 1856
CHINA RAILWAYS.
CONFIDENTIAL.
[September 7.]
25 SEP OC
dyi
SECTION 1.
[33328]
No. 1.
Sir Edward Grey to Sir F. Bertie.*
(No. 711.) (Telegraphic.) R.
Foreign Office, September 7, 1909. NEGOTIATIONS in regard to the international railway loan in China seem to have reached something like a deadlock in connection with the appointment of engineers to supervise construction of different sections. It appears to His Majesty's Government that the only equitable solution is that each of the three groups originally concerned should make some sacrifice, in order to allow of American participation. We understand the British group is fully prepared to do this. We suggest accordingly that the whole Szechuan fine from Hankow, with any branch lines contemplated, should, as nearly as practicable, be divided equally among the four Powers as regards engineers, as well as in other respects, and that the agreement with the Chinese should We would further propose be modified so as to permit of the Americans signing it. that, should the Chinese Government object to making any definite arrangement at present for the construction of the Szechuan line beyond the Hupeh section, China should undertake, as regards such extension, i.e., beyond fchang, to apply to the four Powers for the capital required.
It was agreed before the advent of the Americans that the Hupeh section of the Szechuan line should fall to the German group, while the extension beyond was to be shared between the British and French groups. While the above proposal will entail a diminution of the German section, it likewise involves a decrease in the British and French shares of the extension, and provides, as far as we can see, the only fair arrangement possible.
Please inform Government to which you are accredited, and express hope that they will communicate in this sense with their group.
* Also to Sir E. Goschen, No. 823.
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