}
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This Document is the Property of His Britannic Majesty's Government.1353
Rece [October 7.3 MI
CHINA RAILWAYS.
CONFIDENTIAL.
[36386]
No. 1.
SECTION 1.
(No. 168.)
Mr. Max Müller to Sir Edward Grey.-(Received October 7.)
(Telegraphic.) R.
MY despatch No. 325.
Peking, October 7, 1910.
Four banks had interview with Board of Communications on the 3rd October. Result was even more disappointing than we had expected.
Board argued
1. That the agreement of the 6th June being only initialled subject to sanction
of the throne, was only a draft agreement liable to modification, and
2. That the agreement cannot be concluded in its present form without risk of serious trouble in Hupeh and Hunan,
The banks consider it essential to uphold binding force of initialled agreement as only possible basis for further negotiations.
French Minister and I share this opinion, but are awaiting return of German Minister next week, in order to discuss with him and the American Minister what steps we should take or recommend to our Governments.
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