CO129-383 - Public Offices - 1911 — Page 295

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beyond that of delay in doing so. But I have to face the fact that our four Ministers and our four representatives are unanimous in holding a strongly different opinion, and I hesitate to incur the serious responsibility of advising the groups to disregard the urgent and reiterated advice of those who should be in the best position to judge.

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

291

London, April 19, 1911.

Enclosure 2 in No. 1.

Mr. Addis to the Banque de l'Indo-Chine (Paris) and the Deutsch-Asiatische Bank (Berlin).

(Telegraphic.)

April 19, 1911, FOLLOWING for your private information. Refer Peking joint telegram last night, while not prepared myself accept responsibility opposing the concession urgently and unanimously pressed upon us as necessary by four Ministers and representatives, think it right to state frankly that I am not convinced by their arguments. However safeguarded concession may be it really involves parting with last vestige of control over loan funds which forms basic principle of interbank agreement, and should not be lightly disregarded. In my opinion, danger of competition is not very great, provided, of course, Powers act in concert.

CHINA RAILWAYS,

RIJE 11 MAY

CONFIDENTIAL.

[April 21.]

SECTION 1.

[16081]

No. 1.

Telegram received from Peking Office of Hong Kong and Shanghai Bank, April 21, 1911.- (Communicated by Mr Addis, April 21.)

HUKUANG Failway.

As result of friendly conversation with E. G. Hillier, British Minister Peking has telegraphed fully to Foreign Office, to whom please refer for information re foregoing. Shanghai wires, transfer of large funds before they are required is wrong in principle, and we think group and Government concerned should object. Our opinion is Sheng, Imperial Bank of China, Ta Ching Government Bank, all have gambled and are gambling heavily, expecting rise in exchange on large transfer of sterling to China.

Hong Kong, Shanghai, strongly disapprove of proposed alteration in clause 14 on principle, but, in view of political importance of loan and in view of Ministers Peking agreeing to, do not consider Hong Kong Bank justified in causing rupture of negotiations.

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