CO129-383 - Public Offices - 1911 — Page 543

2

completely. I have pointed out that the Russian Government would not object to this line only in the case of tracing it far enough from the Chinese Eastern Railway, and that it would be necessary for the promoters to know in this matter also the attitude of the Japanese Government, with which Russia is bound by common interests in similar affairs.

At the same time, I confirm you the correctness of your other statements.

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

NA RAILWAYS.

NFIDENTIAL.

Accept, &c.

KOKOVTSOFF.

[83]

[May 26.]

0.0.

18097

SECTION 1.

RECR

No. 1. REG2 16 JUN (1

537

Sir J. Jordan to Sir Edward Grey.-(Received May 26.)

203. Very Confidential.)

Peking, May 10, 1911. I HAVE the honour to transmit to you herewith copy of notes of an interview reen Mr. Straight and M. de Hoyer, representative at Peking of the Russo-Belgian p of financiers.

Mr. Hillier, who furnished me with this document, informs une that the Russian ister, in conversation with Mr. Straight yesterday, confirmed the substance of the y indicated by M. de Hoyer, and expressed himself in favour of an understanding een the four groups and the Russo-Belgian group in respect to railway enterprise Mongolia and other regions where Russia has a political interest, more especially gard to the Kalgan-Kiachta line.

It is evident that the Russo-Belgian group is not likely to prove a formidable petitor for railway business in China proper, but some understanding between it the four groups in regard to future railway enterprise in Mongolia and Manchuria

I have, &c.

is desirable.

J. N. JORDAN.

Enclosure in No. 1.

morandum regarding Proposals from M. de Hoyer, Representative at Peking, of the

Russo-Belgian Group.

ON Friday, the 5th May, 1911, M. de Hoyer, after a general conversation with Straight regarding the currency loan and the Chinchou Aigun Railway, stated he had given considerable thought to the position of his group vis-à-vis our own. stated that he had no desire to compete with us, as such competition would be fitable only to the Chinese.

M. de Hoyer then suggested that three relationships were possible :-

1. Competition.

2. A mutual understanding regarding prices which might be quoted by the mese Government and an arrangement for mutual non-interference; with possible operation in certain specific enterprises.

3. Co-operation,

Mr. Straight enquired whether M. de Hoyer's second suggestion contemplated a sion on geographical lines. He replied that he regarded geographical division undesirable, as the Chinese would not regard with favour the operation of a asian group in Manchuria and Mongolia, which field would be naturally his if a graphical division were made.

M. de Hoyer stated that he did not wish to interfere with the Hukuang loan, but ed whether he had other enterprises in mind in Central and Southern China. Straight replied that the groups had certain claims on the Chengtu extension of e Hankow-Szechuan Railway. M. de Hoyer said that he had no intention of eddling in this matter. He then asked whether the quadruple groups would be pared to co-operate with his group in loaning to China funds for the construction the Kalgan-Kiachta Railway,

Mr. Straight replied that he could not say but that he personally thought that American group at least might be willing to favour such an arrangement if it ere understood that this did not contemplate the abandonment of the Chinchou-

[2024 cc-1]