CO129-372 - Public Offices - 1910 — Page 197

2

of funds, it is of no use pressing our offers of assistance or our claims under the initialled agreement. This, however, appears to me to be a question for the Governments, and not for the financial groups, to settle, and I shall doubtless receive your instructions on this point in due time, though it is no use disguising the fact that we shall probably encounter considerable opposition on the part of the Chinese Government.

I have, &c.

W. G. MAX MÜLLER.

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

CITINA RAILWAYS.

CONFIDENTIAL.

195

со

18595

RECO

[May 26.] Pro 18 JU 10

SECTION 1.

1

[18514]

(No. 77.)

HUKUANG loan,

(Telegraphic.) R.

No. 1.

Sir Edward Grey to Mr. Max Müller.

Foreign Office, May 26, 1910.

An agreement was signed at Paris on 24th May by the representatives of the four groups on following basis :---

1. Finance and material equally divided.

2. British group to retain full engineering rights on Hankow-Canton line. Hankow-Szechuan line to be divided equally between the four groups in the following order-

Germans, 800 kilom, chief engineering rights, of which 200 kilom. sub-engineering rights are conceded to the Americans; Americans, 400 kilom. chief engineering rights, plus 200 kilom. sub-engineering rights as above; British, 600 kilom.; and French, 000 kilom.French and British groups having exchanged sections.

3. Purchasing agents will follow chief engineers as regards nationality.

4. American group agrees to accept one-fourth of whole loan in lieu of former claim to half of Szechuan line.

As regards possible extension beyond Chengtu, any addition up to 600 kilom. in respect of engineering rights to be equally divided between American, British, and French groups, and any further extension to be divided equally between all four

groups.

Instructions to approach Chinese Government in conjunction with your colleagues will be sent to you in due course.

[2761 cc-1]

1