CO129-383 - Public Offices - 1911 — Page 338

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

16333

CHINA RAILWAYS.

CONFIDENTIAL.

[15452]

Pro£18 MAY 11

[April 25.]

SECTION 3.

No. 1.

Mr. Addis to Foreign Office.-(Received April 25.)

Hong Kong and Shanghai Banking Corporation,

31, Lombard Street, London, Dear Sir Francis,

April 24, 1911. IT may interest you to know that in telegraphing to me their assent to the proposed compromise to deposit with native bauks one-quarter instead of one-half of the Hukuang loan proceeds, the Germaus state as follows:-

"We think we ought not to give way any further but try to influence four Govern- ments to use pressure in Peking. We have seen our Foreign Office, who have consented, and will instruct German Minister in Peking accordingly. Hope other groups will act in same way.'

The German intention, apparently, is to make an ultimatum of the joint telegram which I sent from Paris to Peking on the 22nd, a copy of which I sent you this forenoon.

Yours truly,

Enclosure 1 in No. 1.

C. S. ADDIS.

!

(Telegraphic.)

Deutsch-Asiatische Bank to Mr. Addis.

Berlin, April 20, 1911. OUR syndicate is, in principle, quite of opinion that the concession demanded would constitute a bad precedent which, in the interest of future business, should be avoided. Syndicate believes also that unity of four Powers would counterbalance competition. If, however, unanimous opinion of representatives and Ministers in Peking is prevailing that rupture negotiations would follow our decline, our syndicate would be prepared to give way to the transfer of one-quarter of loan proceeds, which transfer ought to be made to China by monthly instalments, to be fixed as small as possible. We admit that, even by such concession, base of principle is departed from, but we think we ought not to lose sight of finding means proving our willingness to meet them half-way. Hope that after approval of Paris and New York you can wire Hillier accordingly. Are sending copy of this message to Indochine and Warburgum.

(Telegraphic.)

Enclosure 2 in No. 1.

Deutsch-Asiatische Bank to Mr. Addis.

Berlm, April 20, 1911.

SUPPLEMENTARY to our to-day's telegram, it is understood that Chinese will Lave to employ, for the construction of railway in the first place, the money deposited with Chinese banks before transferring to China further amounts out of proceeds of loan. Are sending copy of this Paris and Hamburg,

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