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interpreted in any way as modifying the position taken up some months ago by the Imperial Government towards the financial groups concerned.
Should the persons mentioned in this edict attempt to invoke it in order to exercise rights conflicting with the previous undertakings of the Imperial Government, His Majesty's Government desire to state at once that they would refuse to recognise the validity of such a claim, and would reserve to themselves the right to demand from the Imperial Government that there should be no infringement of the agreement in principle established by common consent on the 6th June last.
I avail, &c.
J. N. JORDAN.
[This Document is the Property of His Britannic Majesty's Government.!
[B]
CHINA RAILWAYS.
CONFIDENTIAL.
[8166]
No. 1.
9850
[March 8.]
4 APR 10!
SECTION 3.
Enclosure 2 in No. 1.
Imperial Edict of January 30, 1910.
THE Censorate has presented a petition on behalf of the assistant superintendent of the Ta Ch'ing Bank, Li Ta Chan, and others stating that cash funds have been provided for the Hupei sections of the Canton-Hankow Railway and of the Hankow- Szechuan Railway, and requesting authorisation for them to be undertaken by merchants.
Let the Board of Posts and Communications take note.
Mr. Whitelaw Reid to Sir Edward Grey.-(Received March 8.)
Sir,
American Embassy, London, March 7, 1910. I HAVE the honour to acknowledge the receipt of your note of the 2nd February relative to the Hukuang loan negotiations, in which it was stated that your proposal to divide the Szechuen Railway (Hankow-Ichang) into four equal parts between the four groups was not unacceptable to the French Government provided that the principle of equality between the French and British Governments be extended to the Hankow-Canton Railway by the appointment of a French sub-engineer, and that in the event of China granting the concession for the extension beyond Ichang the French group receive as compensation for the section they are giving up to the American group the fourth or most westerly section of the Hankow-Szechuen line. Furthermore, you were so good as to inform me that in your reply to the French Government, you noted with satisfaction their acceptance of the proposal with reference to the division of the Szechuen line, but deprecated the opening by France of other questions.
Having communicated your note to my Government, I have the honour to inform you that I am now in receipt of instructions from the Secretary of State to the effect that the United States regrets, for reasons already stated, that it cannot accept the proposal of Great Britain to divide the Hankow-Szechuen line into four equal engineering sections.
But my Government is prepared to yield in favour of France 100 kilom. engineering rights on the Szechuen extension provided that Great Britain will satisfy France's desire in other respects-this proposal being, however, subject to the conditions stated in tho aide-mémoire, which I communicated to the Foreign Office on the 29th December last.
I am instructed to bring again to your consideration and, it is hoped, for your favourable action, this American proposal for an early settlement of the vexed question. It now appears to be acceptable to all the other interests concerned with the exception of the British. I cannot doubt that it is as obvious to you as to all our other associates, that while the various Governments and financial groups are spending time in the discussion of the shadowy rights of a concession that has not yet been and may never be granted, they themselves are in grave danger of losing, because of the growing strength of the local opposition, the substance of the agreement which has already been initialled.
The facts therefore seem to force upon the Government of the United States the opinion that it now rests with Great Britain, by joining with the United States in meeting the reasonable desires of the French group, to decide whether or not there is to be any finality in these negotiations.
I have, &c.
WHITELAW REID.
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