foregoing suggestions may commend itself to His Britannic Majesty's Government. That principle finds support in the additional reasons that the consummation of some such plan would avoid the irritations likely to be engendered by the uncontrolled direct negotiations of bankers with the Chinese Government, and also that it would create such community of substantial interest in China as would facilitate a co-operation calculated to simplify the problems fiscal and monetary, reforms now receiving such earnest attention by the Imperial Chinese Government.
American Embassy, London,
November 9, 1909.
[B]
This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
269
39899
DEC 09
Mect
Fef 9 DEC 09
[November 19.]
SECTION 1.
[42419]
No. 1.
Sir,
Mr. Whitelaw Reid to Sir Edward Grey.—(Received November 19.)
American Embassy, London, November 18, 1909. WITH reference to my note of the 12th instant and to your reply of the 17th instant regarding the Chinese railway loans, I have the honour, under instructions from my Government, to inform you that the German group has now consented that an American shall be appointed for the Hsiangyang-Kuangshui section, to co-operate under the general direction of the German chief engineer. This arrangement has been approved by the German Foreign Office, which has at the same time officially recoguised the equal rights of American and other nationals under the original and supplementary agreements, and notably under article 18 of the latter, as follows:--
"With regard to article 18, such modifications or extensions of the provisions respecting the appointment of purchasing agents for the two lines as may be necessary to secure equal consideration for British, German, French, or American nationals, and equal facilities for the receipt of tenders in the markets of the four countries shall be made the subject of an equitable arrangement between the director-general and the four banks."
Hoping that this information, received this morning from my Government, may shed some light on the doubts expressed in your note of yesterday.
I have, &c.
[2486 t—1]
WHITELAW REID.
Page 270Page 271
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