CO129-382 - Public Offices - 1911 — Page 399

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of nationality. As it is, I do not think they are likely to make any further progress with their negotiations, which will only block the way for future operations; and the best thing they can do now is to invite the other three groups frankly into the negotiations, and avail themselves of their experience in devising means of overcoming the deadlock now created. I have not formed a great opinion of Straight as a negotiator.

As regards Korostovetz's forecast of international control of China's finances, perhaps he is going rather fast. Constitutional affairs in this country have been proceeding lately with such rapidity that they can no longer be neglected as a factor. Our experience of international control of this sort is practically limited to countries without a constitution, like Turkey and Egypt, and it remains to be seen how it would work in a country which had a popular voice and of the vast extent of China.

As regards the Hukuang loan, we are expecting the memorandum from Liang Shih-yi every day. Two days ago he informed Sir J. Jordan in conversation that he was sending it in very shortly, and that he was working in complete accordance with the views of the new president, Sheng Kung-pao. On the other hand, I am told that Sheng has a personal interest in the success of the present negotiations, since he realises that the construction of the projected lines will materially enhance the value of his various coal mines and ironworks in their neighbourhood. On the whole, I think we have reason to be hopeful of the outlook.

Yours very truly,

E. G. HILLIER.

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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[3170]

No. 1.

7234

[January 27.]

MAR

SECTION 2.

Colonial Office to Foreign Office.-(Received January 27.)

Sir,

Downing Street, January 26, 1911. I AM directed by Mr. Secretary Harcourt to acknowledge the receipt of your letter of the 13th January on the subject of the reopening of the mint at Canton for the coinage of 20-cent pieces.

2. I am to request you to inform Secretary Sir E. Grey that Mr. Harcourt agrees that Mr. Max Müller's attitude should be approved, and that he thinks that Sir J. Jordan should be directed to take no action in the matter for the present.

I am, &c.

H. BERTRAM COX.

[1850 dd-2]

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