CO129-371 - Public Offices - 1910 — Page 204

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

CHINA RAILWAYS.

CONFIDENTIAL.

202

C O 4196

[January 24.1

Deaf H FEB-10 SECTION 2.

(2523]

No. 1.

:

(No. 14.)

(Telegraphic.) P.

Sir Edward Grey to Sir J. Jordan,

CITINCHOW-AIGUN Railway.

Foreign Office, January 24, 1910.

Please see your telegram No. 3 of the 23rd January. The British and Chinese Corporation are claiming the right to finance the Chinchow line under the loan contract for the Fakumen line as signed by Bland and Tang in November 1907. They base their claim on the argument that in 1907-8 they were co-operating with Paulings in their endeavours to obtain the contract for the Fakunen line, and that now that Chinchow line has been substituted for the Fakumen contract their claim applies equally to the former, since their withdrawal from the Fakumen contract was simply in deference to the wishes of His Majesty's Government in view of Japanese opposition.

In any case, we left no doubt as to the fact that our support could only be relied on if the Japanese acquiesced, and that in this event we could not support any one firm in preference to any other of equal standing. Moreover, we are not willing wholly to admit the contention that the Chinchow contract is to be regarded as compensation for the Fakumen line.

A possible argument might be that, as the Imperial edict has been obtained independently of this Office, the question of the British and Chinese Corporation's participation is one for settlement between them and Paulings, but before giving any such reply we would wish to have your opinion on the question.

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