CO129-363 - Public Offices & Others - 1909 — Page 77

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36990

[This Document is the Property of His Britannic Majesty's Government.]

CHINA TRADE.

C

$

CONFIDENTIAL.

)

[38854]

No. 1.

REC Brg° 11 NOV 09,

[October 21.7-

SECTION 3.

76

Sir,

Messrs. Samuel and Co. to Foreign Office.--(Received October 21.)

Shell House, 104-105, Bishopsgate Street Within, London, October 20, 1909.

WE were yesterday afforded an interview by Mr. Beilby Alston at the Foreign Office, when, after some discussion of the matters upon which we went to see him, we were asked to put our requests into writing for your consideration.

Early this year you were good enough to have a letter written to His Majesty's Minister in Peking stating that he might inform the Chinese Administration that our firm and their agents, Messrs. Samuel, McGregor, and Co. (Limited), of Shanghae and Dalny, were fully competent to carry out any commitments, whether financial, com- mercial, or engineering, which we might undertake. Shortly afterwards one of our partners was in Peking, where he was informed by the late Mr. Chang-chi-tung that the Chinese Government was quite ready to afford us an opportunity of entering into business relations with them, but that it was first necessary that the British Minister in Peking should approach him and inform him that on behalf of the British Government he could recommend us as a firm properly qualified to carry out such business as might be entrusted to us by the Chinese Government.

A request to Sir John Jordan that he should write the necessary letter-in this particular case in connection with the Canton-Hankow Railway-was met by the statement that he had instructions from the British Government to support the British and Chinese Corporation in this instance, and that therefore, while he would be very pleased, if Mr. Chang-chi-tung inquired of him, to state that we were in a position to carry out any engagements into which we might enter, at the same time he could not, in view of his instructions from home, himself take the first step in the matter.

Several attempts were made by us to induce Mr. Chang-chi-tung to make the necessary enquiry of the British Minister, but the former adopted the not unreasonable attitude that it was he who should be approached by those who wanted his business, and that he should not be expected to run after those who wished to do business with him. He informed us that he was being pressed daily by the representatives of other Governments who wished this particular business of the Canton-Hankow Railway and other businesses to be placed with their nationals, and that consequently he was in the position of the pursued, and not the pursuing. He stated that he was prepared to allow us, in accordance with the terms of the agreement which he had made with the Deutsch-Asiatische Bank, to take half of the loan with them, provided always that Sir John Jordan would write the necessary recommendation. Once more we saw the British Minister, and as he informed our partner who was in Peking that the matter was a question of policy on the part of the British Government, and that in the particular case of the Canton-Hankow Railway he was unable to comply with our request without specific instructions from the Government, and as he laid particular stress on the political aspect of the question, we decided that we would in this particular matter withdraw rather than cause him any embarrassment, though, as a matter of fact, our friendly relations with the European constituents of what is known as the Deutsch-Asiatische Bank would have rendered it quite possible for us to have worked in association with that institution,

In this connection we would point out that, in our opinion, had we had the assistance of Sir John Jordan we should have been able to divide the whole of the Canton-Hankow Railway contract with the Deutsch-Asiatische Bank, so that at least half of the materials required would have been bought through our agency from British manufacturers, whereas the latter, under the present arrangements, would get but a small proportion.

The present position is that until Sir John Jordan receives instructions from you to write a letter to the heads of the Chinese Administration informing them that he can confidently recommend both ourselves and our agents, Messrs. Samuel, McGregor, and Co. (Limited), as fully qualified to handle any Chinese Government business which we may undertake, we shall be unable to break through the monopoly

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