[This Document is the Property of His Britannic Majesty's Government.] 6
CHINA RAILWAYS.
CONFIDENTIAL.
[27744]
No. 1.
TRE
[July 22.]
SECTION 2.
(No. 123.)
Sir J. Jordan to Sir Edward Grey.-(Received July 22.)
(Telegraphic.) P.
RAILWAY loau negotiations.
Peking, July 22, 1909.
The present situation is described in the telegram sent to London to-day by Mr. Hillier.
So far as it is possible for us to judge here, there would seem to be no grounds for expecting a reduction of the American demands. Should that be the case, the banks might well, I think, consider the desirability of yielding at once rather than await the practically inevitable concession of the American terms, to which a prolongation of the existing state of affairs would seem to lead.
Though Liang Tun-yen has assured Mr. Hillier that his Government would renew their attempt to obtain more reasonable terms from the Americans, he yet explicitly pointed out that the Chinese could not but recognise that in the United States Govern- ment they had their sole supporters against the aggressions of the Japanese in Man- churia, aggressions which had increased in daring since the publication of the recent telegrams in the " Times," and he declared that the Chinese Government were con- sequently unable to disregard the expressed desire of the Americans.
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