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to him: he appeared fully aware of the reasons which precluded
His Majesty'a Government from supporting him diplomatically
in his claim to an extension of the monopoly: but he was of
opinion that the Chinees Administration were so badly in need
of funds that the Companies night succeed in obtaining the
extension in return for a loan without euch support. On this it
was pointed out to him that politically it might well have the
same undesirable effect; as it would be difficult if not im-
possible to persuade the Japanese or American Govern ente that
Kia Kajesty's Government had had no hand in the transaction
nor encouraged it. Sir John undertook to discuss the matter with
his Directors and to revert to the question later.
11.
On June 9th he called again and handed in the letter of
June 7th of which a copy is enclosed. Confirming its contents
Sir John said that in view of His Mjesty's Government's sentiments on the subject the Companies were prepared to drop their proposal for a prolongation of their monopoly beyond 1930:
ni ho communicated a copy of the joint telegram to the Companies Agent in Peking (actually despatched on June 9th) instructing Mr.
Bullard accordingly.
12.
The position now appears to be satisfactory and on 29th ultimo I addressed a telegram to you authorising you to support the Companies in their negotiations with the Chinese Goverment
on these lines.
I am, &c.
(signed)
(For the Secretary of State).
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