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main agreement, which has now been modified to a request that the Chinese Government may be principal parties to the proposed supplementary agreement, and to this the latter seem disposed to agree. The delay has relieved us from the necessity of immediately showing our hand to either Chinese or Americans, and both parties are still in ignorance of the real situation created by the demand for a rearrangement of sections. It is obviously important that we should, as long as possible, throw the responsibility for delay upon the Americans; but when once they have declared themselves ready to conclude terms, we shall have to come out into the open, and then the disagreeable part of our task will begin. I have very little doubt that the question upon which the Americans are really holding out is that of the market; they have no confidence in their own market, and show the greatest anxiety to be allowed access to ours, which we are determined to prevent if possible. The probable unwillingness of the American financiers to come in at all has been strengthened by the evidently wide-spread anxiety created by the illness of Mr. Harriman; they seem more than ever averse to committing themselves at the present moment, and I should not be surprised to learn that there is a sharp conflict going on between them and Mr. Taft, who would appear to have embarked upon his policy with a lofty disregard for practical considerations, or even ordinary courtesy.
Casenave leaves for home by this Siberian mail, leaving Saint Pierre in charge. M. Simon has for some time been pressing him to go home, and on the whole I think it is a good thing that he should do so; he can do no more good here, but can render valuable assistance in explaining the situation, as we see it, to the groups at home. He will of course go to see you, after seeing his friends in Paris; but should you wish to see him at once on any urgent question, a letter addressed, care of M. Simon, will find him, and he will go over immediately.
Yours, &c.
E. G. HILLIER.
[This Document is the Property of His Britannic Majesty's Government.
34966 IRECT
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CHINA RAILWAYS.
CONFIDENTIAL.
[35319]
No. 1.
Sir Edward Grey to Sir J. Jordan.
(Rec: 25 OCT 09
[September 23.]
SECTION 1.
(No. 158.) (Telegraphic.) P.
Foreign Office, September 23, 1909. HUKUANG loan. We agree in the view expressed in your telegram No. 155 of the 21st September. At present, however, it seems useless to approach the German Government again, as our communications are merely referred by them to their group.
To-morrow, however, Mr. Addis proceeds to Paris to discuss the present situation with M. Casenave and the French group.
Should he find that they are in agreement with our views, he will propose a meeting of the European groups in order to induce the Germans to reconsider the attitude they have adopted.
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