CO129-362 - Public Offices - 1909 — Page 56

54

C.O.

[This Document is the Property of His Britannic Majesty's Governme24967

IRECR

Rre 26 JUL OC

CHINA RAILWAYS.

CONFIDENTIAL.

[21746]

No. 1.

[June 14.]

SECTION 4,

Sir Edward Grey to Mr. Whitelaw Reid.

My dear Ambassador,

Foreign Office, June 14, 1909. SINCE I saw you on Thursday I have had a telegram from Peking saying that the United States chargé d'affaires has informed the Wai-wu Pu that the United States Government still hold China to her engagement of 1903 and claim a share in the Hankow-Szechuan line.

Mr. Fletcher was good enough to acquaint His Majesty's Minister with this step, and Sir J. Jordan reminded him of the enquiries made in Washington in 1905 and of the fact that there had been no indication since then that American participation was forthcoming. Sir John added that it would be most unfortunate if anything now occurred to disturb the agreement, which had been signed and only awaited Imperial ratification, and that any attempt to modify it would be certain to wreck it. Mr. Fletcher fully realised the danger of reopening the question at Peking, and agreed with Sir John Jordan that the whole question of American participation in the future could only be arranged in consultation with the financial groups in Europe.

I have instructed Mr. Bryce to express our earnest hope that Mr. Fletcher will be told not to raise any difficulties as regards the issue of the Imperial edict, which is all that is required to complete the agreement which has been arrived at, and have suggested that the recently formed American group should place themselves in communication with the British, French, and German banks concerned in regard to any future loan arrangements in which they may desire to participate.

I have, &c.

[2317 6-4

-4]

GREY.