[This Document is the Property of His Britannic Majesty's Government.]
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22 DEC 091
CHINA RAILWAYS.
CONFIDENTIAL.
[September 24.]
SECTION 2.
[35642]
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received September 24.)
(No. 157.) (Telegraphic.) P.
RAILWAY loan negotiations.
Peking, September 24, 1909.
I have discussed with Mr. Hillier the situation as described in your telegram No. 158 of yesterday's date, and I would suggest that the Germans be asked to cede to the Chinese Central Railways the section of the railway from Hsiangyang to Kuang- shui. They would thus make the very reasonable contribution of about 200 kilom. towards the loss entailed on the Anglo-French groups by the enforcement of the American claim to one-half of the line from Ichang to Ch'engtu.
It appears to me that this would solve the problem in a satisfactory manner as far as the Germans are concerned, while the French and British groups might come to a mutual arrangement as rogards their respective interests.
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