CO129-384 - Public Offices - 1911 — Page 142

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

CHINA RAILWAYS.

CONFIDENTIAL.

[25507]

со

23539

R18 JULI

[June 30.]

SECTION 2,

No. 1.

Mr. Addis to Sir F. Camphell.-(Received June 20.)

Hong Kong and Shanghai Banking Corporation, Dear Sir Francis,

31, Lombard Street, London, June 30, 1911. REFERRING to my letter of the 24th June, I have now seen Lord ffrench and informed him that, while we cannot consent to take part in their negotiations with the Chinese Government for the construction by contract of a section of the Ilukuang Railway, we are in favour of the principle, and should the contract be obtained would not so far as we are concerned offer any objection, so long as our rights under the Hukuang Loan Agreement are not prejudiced.

I enclose copy of our telegram to Mayers, defining the attitude of the British group, which, as you will see, is one of benevolent neutrality.

Yours truly,

C. S. ADDIS.

Enclosure in No. 1.

Copy of Telegram sent to Mr. Mayers.

REFERRING to your telegram of the 20th, referring to our telegram of the 21st, we are not yet aware of views of other groups, but so far as we are concerned have no objection to construction by contract, and have informed Pauling and Co., Foreign Office, accordingly.

We consider article 17 covers construction contract, provided Chinese Government still appoint their own engineer-in-chief, and construction contract approved by him and to be carried out to his satisfaction.

As regards purchasing agency, Chinese Government at liberty by article 18 employ other agents, provided Chinese Government pay our commission or arrange for payment of same.

Lord ffrench detained in England at present, but in compliance with Chinese request, through His Majesty's Minister, Pauling and Co. dispatching competent engineer to China at once.

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