This Document is the Property of His Britannic Majestys Government."
[February 14]
CHINA RAILWAYS.
CONFIDENTIAL.
[5377]
No. 1.
393
SECTION 8.486
REC
Rro? 4 MAR 10]
Papers communicated by Mr. C. S. Addis February 14, 1910.
(1.)
Dear M. Simon,
Mr. C. S. Addis to M. Simon.
Hong Kong and Shanghae Bank, London,
February 14, 1910.
AS arranged with you on Saturday night, I enclose for your approval the Chinese Central Railway's draft reply to Messrs. Morgan, Grenfell, and Co.'s proposal of the 11th instant.
Please wire me if you approve, and we shall have it sent in at once,
A
I sincerely hope that you may see your way clear to associate yourselves with us in this final attempt to solve the American problem upon a practical basis of equality which all must accept in principle. It will enormously strengthen our position in these negotiations if the French and English groups rise superior to the persistent attempts being made to produce a division between them. Only by presenting united front can we hope to overcome the resistance to our proposals. can see no other way out of the present deadlock, and unless we come to a conclusion within a very short period of time I believe the Chinese will demand, not without reason, to be released from their engagement of the 6th June.
(2.)
Believe me, &c.
C. S. ADDIS.
Dear Sirs,
Chinese Central Railways to Messsrs. Morgan, Grenfell, and Co.
110, Cannon Street, London, February 14, 1910.
I BEG to acknowledge receipt of your letter of the 11th instaut, in which you transmit a counter-proposal cabled to you from New York for the settlement of the engineering question on the Szechuen Railway. According to this counter-proposal, the division of sections for engineering purposes would be as follows:---
Germany and America take between them
France takes,.
England takes
Total estimated
Kilom.
1,300
600
500
2,400
After consultation with my colleagues on the English board, I am to inform you that we cannot accept this division. We adhere to the principle of equal division, as set out in my letter to you of the 25th January, as being the only equitable and satisfactory solution, As there appears to have been some misunderstanding as to the precise mode of division put forward in that letter, I beg to recapitulate the proposition. It was that---
Germany and America should take between them France to take
England to take
Kilom.
1,200
600
600
By arrangement between Germany and America, Germany, while retaining chief engineer for the whole 800 kilom, of the Hupeh section, cedes to America a sub-engineer for 200 kilom. thereout. The American portion therefore is :---
Sub-engineer
Chief engineer
[2631 -2]
Kilom.
200
400
600
!
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