Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President Transmitted to Congress December 7, 1909
File No. 5315/208–209.
The Acting Secretary of State to Ambassador Reid.
Washington, June 3, 1909.
Sir: Referring to the department’s telegram of June 2, 1909, with regard to China’s written promise to give preference to American and British capital, should her own prove insufficient, for the construction of the Hankow-Szechuen Railway, I inclose herewith, for the information of the embassy, copies of the correspondence on file at the department relative thereto.
I am, etc.,
Minister Conger to the Secretary of State.
Peking, September 27, 1904.
Sir: I confirm my telegram of to-day as follows:
Secretary of State, Washington:
Twenty-seventh. Chinese Government has promised in writing that if foreign capital necessary Americans and British should have preference in railway Hankow to Chungking. French and British capitalists will meet in London October 20 to discuss question. British minister, recognizing our rights, inquires if American capitalists will not join. If they do not, I shall oppose concession to others unless otherwise instructed.
(Signed) Conger.
Both the Thurlow Weed-Barnes Syndicate and the China Investment & Construction Co., of New York, have, through this legation, made application to the Wai-wu Pu for a railway concession from some point in the Province of Szechuen to Hankow, to which the Wai-wu Pu has replied that the British minister had also asked for such concession, but it was expected that the railway would be built by Chinese capital. If, however, it should be found necessary to employ foreign capital both the British minister and I would be notified, and British and American capital be given the first chance.
The French have recently been urging the Chinese Government to give them the concession, but have been replied to as above.
To-day the British minister came and informed me that French capitalists had approached British capitalists at home for the purpose of joining British and French capital in the enterprise, and that a joint meeting was to be held in London on October 20 to discuss the question.
He inquired if I thought American capitalists would join in such an undertaking. I replied that I did not know, but that I would wire the department what he had said, and that at any rate, whether they did or not, I should insist that the Chinese Government keep its promise with us. He told me that he had already telegraphed to London that the promise of preference was given by the Chinese Government as much to me as to him, and that American and British rights in the matter were equal.
[Page 147]I believe the Chinese Government is sincere in its expressed desire to favor American enterprises of this kind, but the outrageous action of the American-China Development Co. with the Hankow-Canton line has largely destroyed the faith of the Chinese in our capitalists.
I have, etc.,
The British Ambassador to the Acting Secretary of State.
Lenox, Mass., July 25, 1905.
Dear Mr. Adee: You will recollect a conversation which I had with you toward the end of March last on the subject of the proposed railway from Hankow to Szechuen, when I mentioned to you that an English and French syndicate had come to an agreement with a view to joining in the construction of the line, provison being made for the participation of American and Belgian financiers should they wish to take part in the undertaking.
I am now in receipt of a telegram from Lord Lansdowne stating that His Majesty’s Goverment consider that the time has come to call upon the Chinese Government to fulfill the promise which they made to His Majesty’s Government in 1903 “with regard to the employment of British capital in the construction of the line, should Chinese capital not be sufficient.”
His Majesty’s Government accordingly propose to approach the Chinese Government with the object of obtaining a concession for the construction of the line, to be divided according to the terms of the agreement above referred to between the British and French syndicate, which has been approved by His Majesty’s Government and the French Government.
Lord Landsdowne would be glad to be informed definitely whether it is still the wish of American capitalists to participate in the enterprise. In case American capital is forthcoming for the purpose I am to ask whether you would see any objection to putting the American group into communication with the British syndicate concerned—the Chinese Central Railways (Ltd.), 110 Canon Street, E. C. His lordship expresses the hope that he may be furnished with a reply at an early date, as it is desired to take action in the matter shortly.
Believe, etc.,
The Acting Secretary of State to the British Ambassador.
Washington, August 3, 1905.
My Dear Mr. Ambassador: I beg to acknowledge the receipt of your personal note of the 25th ultimo relative to the proposed railway from Hankow to Szechuen, in regard to which an English and a French syndicate have come to an agreement with a view to joining in the construction of the line, provision being made for the participation of American and Belgian financiers should they wish to take part in the discussion.
With reference to the promise made by the Chinese Government in 1903, you are so good as to inform me that His Majesty’s Government now propose to approach the Chinese Government with the object of obtaining a concession for the construction of the line, to be divided according to the terms of the agreement above referred to, and ask whether the American capital is disposed to participate and to enter into communication with the Anglo-French syndicate.
In reply I would say that the department has not been advised of the intensions of American capitalists in this regard. I have thought it expedient, therefore, to cause appropriate publicity to be given to the matter.
I am, etc.,
The British Ambassador to the Acting Secretary of State.
Lenox, Mass., September 19, 1905.
Dear Mr. Loomis: In a letter, dated August 3, which I had the honor to receive from Mr. Adee, relative to the proposed railway from Hankow to Szechuen, I was informed that the State Department had not then been advised of the intentions of American capitalists as regards their participation in the scheme.
I should feel greatly obliged if you would kindly inform me what has been the result of the action which Mr. Adee stated was being taken by the State Department in this question, as His Majesty’s Government are anxious to obtain definite information on the subject.
Believe, etc.,
The Acting Secretary of State to the British Ambassador.
Washington, September 27, 1905.
My Dear Mr, Ambassador: I beg to acknowledge the receipt of your personal note of 19th instant, in which, with reference to the department’s note of the 3d ultimo, you ask whether it has any information as the result of the action indicated in that note regarding the intentions of American capitalists in connection with the proposed railway from Hankow to Szechuen.
I regret that I am still unable to inform you in this regard. Notwithstanding the publicity which the department has on two occasions given to the matter, it has received no intimation of the intention of American capitalists as regards their participation in the scheme.
I am, etc.,