538
2
Aigun Railway, and, further, if Pauling and Company were compensated in somet for the postponement of this enterprise.
Mr. Straight pointed out, and M. de Hoyer admitted, that it would be imposs for a Russian group to secure from China a right to build the Kalgan-Kiachta raik unless the quadruple groups participated in a loan therefore.
M. de Hoyer stated that he understood, of course, that in any arrangement might be made the groups would be on a footing of equality. In this view Mr. Strai agreed.
On the same day M. de Cartier, the Belgian Minister, approached Mr. Caser with regard to the possibility of making some arrangement between the Russo-Bel group and the quadruple syndicate in order that unnecessary competition might
avoided.
The explanation of this conciliatory attitude on the part of M. de Hoyer! M. de Cartier is probably to be found in the news received from London that London, City, and Midland Bank has formally announced that it is not associ with any syndicate organised for the purpose of doing business in China, and alsi the fact that the Russo-Belgian group may anticipate some difficulty in securis quotation on the Paris market.
1911
C
reign
Date.
4 June
46339
We are unanimously of the opinion that the competition of the Russo-Bel group is not now seriously to be feared. We are further unanimously of the opi that our present strong position in China is due to the fact that the Chinese feclast previous Paper. we represent nations friendly to China, anxious to assist in her development, pledged to the maintenance of the "open door." We therefore believe that it would 10. unwise even to consider any general understanding with the Russo-Belgian group. At the same time it must be remembered that Russia exercises consider political power in Peking, and that Russia and Japan together could seriously han our activities here, while it is not at all impossible that these two Powers mi attempt to interfere with the consummation of the loan for currency reform, and the eventual inauguration of the Chinese programme.
It should further be pointed out that while a group with Russian affiliations probably alone be unable to do business in Manchuria and Mongolia, we oursel would be able to accomplish little in these regions against a Russian political opposit which we should certainly encounter in case we had not reached some understand with the Russian group.
Therefore, in order to conciliate the Russians, if possible, and to prevent t opposition to the currency reform scheme, and further in order to facilitate oura entry into Manchuria and Mongolia, we believe it desirable that we express to Russian group our willingness to consider a proposition from them regarding understanding as to future co-operation with them in case they secure, or cos themselves in a position to secure, loan contracts for work to be done in the reg before mentioned.
*
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Mr. 19
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