CO129-372 - Public Offices - 1910 — Page 21

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

CHINA RAILWAYS.

CONFIDENTIAL.

Ref 12 MAY 10 [April 6.]

SECTION 1.

[11696]

No. 1.

Papers communicated by Mr. C. S. Addis, April 6, 1910.

(1.)

Dear Mr. Addis,

Herr Urbig to Mr. C. S. Addis.

Berlin, April 2, 1910.

I RECEIVED your favour of the 30th ultimo, and have telegraphed you yesterday as per copy enclosed.

I am afraid the Chinese will not be particularly disconcerted by the latest protest; they know fully well that their attempt of breach of trust-which, according to our experiences gathered in China, is quite an unusual one-is protected by the lack of an agreement between the four groups. The objection raised by the United States against the signing of the agreement was politically and commercially an extremely unfortunate measure. Since the death of Chang-Chi-Tung it was quite evident to us that the Chinese would try to get rid as far as possible of the consequences of the agreement of June last. Being aware of this, we have made a sacrifice in order to prevent a change for the worse of the situation and to accelerate an understanding between the groups. Since the end of last year England has the key for an amicable arrangement in the hand; being in the possession of the Hankow-Canton section, it has so great an advantage before the three other groups that an adjustment of the still-existing difference is practically of no consequence to England. It must affect us who have made a concession painfully that the English group cannot see its way to adopt the standpoint that a business, though it may have lost somewhat of its attractiveness, is still better than none at all.

Believe me, &c.

(2.)

Mr. C. S. Addis to Herr Urbig.

FR. URBIG.

Dear Mr. Urbig,

Hong Kong and Shanghae Bank, London, April 5, 1910.

IN reply to your letter of the 2nd April, I fully share your view as to the weakness of our protest in re the Hukuang loan so long as our international difficulties remain unsettled, but it is difficult to see what more we can do. We have been and are still willing to agree to any reasonable compromise.

I cannot but regret that neither of the alternative propositions embodied in our letter to Messrs. Grenfell, Morgan, and Co. of the 14th February should have been accepted. So far as we are concerned they mark the limit of concession.

Believe me, &e.

[2706 -1]

C. S. ADDIS.