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the first option of undertaking the future construction of
the Canton-Hankow Railway.
The following year, namely the 18th October, 1906, the
British and Chinese Corporation, acting on the advice of
His Majesty's Government, entered into an agreement with
the French Group to obtain a concession for the Canton-
Hankow Railway through a British Company, the capital to
be subscribed in equal shares and with an equal share of
management.
Early in 1908 it was reported that Chang Chih Tung
was prepared to entertain proposals, and negotiations
On the 9th continued during the year and into 1909.
March, 1909, the German Group, who, on the 26th February,
1909, had joined the Anglo-French Group in a written under-
taking to adhere to Canton-Kowloon terms, disregarded that
agreement and, by a breach of faith, secured for themselves
the Canton-Hankow Railway Loan on Tientsin-Pukow terms.
The Anglo-French Group, faced by a fait accompli, had to
make the best terms they could with the German Group.
After long and difficult negotiations an agreement was
finally reached at Berlin on the 14th May, 1909, for co-
operation
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