[This Document is the Property of His Britannic Majesty's Government.]
8011
422
CHINA RAILWAYS.
CONFIDENTIAL.
[February 18:]
SECTION 1.
IS MAR 10
[6185]
No. 1.
February 18.)
Messrs. Morgan, Grenfell, and Co. to Mr. Jamieson.~(Communicated by Mr. Addis,
22, Old Broad Street, London, E.C.,
February 17, 1910.
Dear Sir,
WE have to acknowledge receipt of your letter of the 14th instant, which we received yesterday.
We regret to notice therefrom that you are unable to accede to the proposal made by us on behalf of the American group in our letter of the 11th instant. We regret your decision the more, as such proposal appears to be satisfactory to the French and German groups.
We have already written you that the American group cannot accept the proposal made in your letter of the 25th January.
Yours faithfully,
MORGAN, GRENFELL, AND Co.
Enclosure in No. 1.
Memorandum by Mr. Jamieson on the Position of the Inter-Group Controversy regarding Engineering Sections of the Hankow-Szechuan Line.
BY clause 5 of the Berlin agreement of the 14th May, 1909, it was agreed that the chief engineer for the Hupeh section of the line to the extent of about 800 kilom, should be appointed by the German group, "and the chief engineer for the extension of the line from Ichang or Hsiangyang to Chengtu to be appointed by Chinese Central Railways."
By collateral agreement between C. S. Addis, representing the Chinese Central Railways, and Mr. Simon, on behalf of the Banque de l'Indo-Chine, it was agreed "that in respect of the portion of the line for which the chief engineer is to be appointed by the Chinese Central Railways, that company shall appoint a French engineer for the first section to be constructed of such portion, up to about 800 kilom., but not exceeding one-half of such portion, and a British engineer for the second section to be constructed."
By a letter from Mr. Simon to Mr. Addis dated the 19th May, we were informed that at a meeting of the French directors held at Paris that day a resolution was passed ratifying the general agreement and the Addis-Simon agreement signed at Berlin the 14th May, and also that the following resolution had been adopted :--
"La nomination de l'ingénieur-en-chef étant accordée aux Chinese Central Railways pour la construction du prolongement de la ligne Hankeou-Chenton au-delà du Iloupeh, il est entendu que les Chinese Central Railways désigneront un ingénieur français pour la première moitié de la ligne. Si cette première moitié n'atteignait pas 800 kilom., il y aurait lieu éventuellement de désigner un ingénieur français pour la construction de toute extension, prolongement ou embranchement de cette ligne jusqu'à ce que soit parfaite une longueur totale de 800 kilom."
To this we replied under date the 21st May, to say that the London directors agree to the above resolution, it being understood that the extension, prolongement ou embranchement' referred to is an extension starting from some point on the said 'première moitié' of the line."
So matters stood when the American claim to participate was put forward. The attitude of the English group is sufficiently set out in my letter to Messrs. Morgan, Grenfell, and Co. of the 25th January, when we pressed them to fall in with the equal division principle, the share allotted to America being
Sub-Engineer (Hupeh section)
Chief Engineer (extension)
[2631 s-1]
Kilom.
200
400
Total
4+
600
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