2
of England, America, France, and Germany in connection with the Chinese business, you would like to see that Japanese bankers approach to it, not through France, but directly through England, the Japanese allied nation; that is to say, to take all necessary steps through Hong Kong and Shanghae Banking Corporation. In that case, you said that the said financial group will give a participation to Japanese bankers and you favoured me with a copy of the agreements of the said financial group. Thereupon, I said to you that this is a matter under consideration on the In the case that Japanese bankers decided to part of the Japanese Government. join the said financial group, I will make them, according to your suggestion, to ask the participation through the English banker. Then I also added that this was originated while I was in Paris. The French Minister of Finance told me that-- 'whenever the English, American, French, and German syndicate undertakes any business with the Chinese Government in connection with her railroad, we must apprehend that the Japanese might raise an objection to it. Therefore it is our wishes that the Japanese Government would instruct her Minister in Peking to advise the Chinese Government with a favourable attitude toward such an undertaking of the syndicate, and that the Japanese would also enter into co-operation with the said syndicate, &c.' Immediately I cabled this interview to the Japanese Government, and I was informed that the Government at once instructed the Japanese Minister in Peking to give assistance to the said syndicate, and that the Government will also consider about the Japanese co-operation with the syndicate. I communicated to the French Minister of Finance this correspondence with my Government, and I received from him his grateful recognition. On that day I talked over with you privately about all these matters.
"Now there is a report that the provisional agreement is being made by American capitalists in supplying capital to the Chinese Government. The Japanese money market, now being in quite different situation from what it was in the former years, there is a group of Japanese capitalists who wish to join the English, French, and German syndicate for the Chinese business. So in pursuance with our understanding in the former year, I now wish to consult with you with a view of joining to the syndicate. If you deem it necessary for the Japanese Government to enter into negotiations with the English Foreign Office on this matter, please let me know the important points for such negotiation, as I will take due steps.—TAKAHASHI.”
[This Document is the Property of His Britannic Majesty's Government.]
C D
621
CHINA RAILWAYS.
RECO
Reas 7 JAN I
CONFIDENTIAL.
[November 23.]
SECTION 1,
[42650]
No. 1.
Mr. Addis to Foreign Office.--(Received November 23.)
Hong Kong and Shanghai Banking Corporation, 31, Lombard Street, November 22, 1910.
Dear Sir Francis,
IN continuation of my letter of the 16th instant, I now enclose a second telegram from Baron Takahashi, with reference to the proposed addition of a Japanese group to our Anglo-Franco-Germanic-American agreements.
You will observe that Baron Takahashi admits that the Japanese have no concession to offer to the other groups as the price of admission, but bases his application on the ground of Japanese abstention from competition during the past three
years. The inference which, apparently, Baron Takahashi wishes to convey to the groups is that unless they accede to Japanese demands they will have to reckon with competition from them for the future; in effect, it is a polite species of blackmail.
Yours truly,
Enclosure in No. 1.
C. S. ADDIS.
Baron Takahashi to the Yokohama Specie Bank.
(Telegraphic.)
Tokyo, November 21, 1910. THE English, French, and German syndicate mentioned in my telegram was meant the Chinese Central Railway (Limited), as was understood by Mr. A. M. Townsend.
As we have much desire to join to the present syndicate, I instruct you to consult with Mr. Addis about the means to accomplish this object.
As to the group and bank mentioned in your telegram, we are ready to form them at any time from among our prominent bankers and financiers.
As to the considerations to be brought into this syndicate, I want to have it mentioned that in the former year Japanese capitalists were negotiating about railroad concessions in China, and when they were near the point of conclusion we made them to give up the same on account of our understanding with the French Finance Minister, as I mentioned in my last telegram. Since then we received many offers of similar character from China, but, respecting the interests of the Chinese Central Railway (Limited), we have kept on declining all of them until to-day. Therefore, at present, we have no railroad concessions or loans to offer for the consideration. But in future, if we change the policy pursued so far, we are confident that we are able to secure some concessions good enough for the purpose.
Thus, although we have no consideration to offer at present, fully consult with Mr. Addis about our joining with the syndicate, explaining the circumstances above mentioned.
As to the loans to be issued by each group, we wish to be placed under the same conditions as the American group.-TAKAHASHI
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