File No. 5315/633.
Chargé Blanchard to the Secretary of State.
Paris, December 16, 1909.
Referring to instruction of December 9, Mr. Blanchard says the difficulty lies between French and English groups, and that French Government is ready to adhere as soon as it obtains in the Hankow-Canton and Hankow-Ch’eng-tu lines a share equal to the share of other powers. He says the partition between engineers, as proposed by Great Britain, is unacceptable to France. Points out that projected international loan comprises about 3,200 kilometers, 800 for each participant, and that American and German have received their legitimate share, which represents a quarter of the operation, whereas [Page 215] English reserve 1,400 kilometers, 900 on the Hankow-Canton and 500 on the Hankow-Ch’eng-tu line, proposing to the French to be content with eventual 500 kilometers on the Szechuen line. Adds that so soon as English group will consent to reserve to French a share equal to that of their partners there will be no further opposition, and that this would be the case if the 900 kilometers of the Hankow-Canton line remained controlled by English and third section of Szechuen line by French engineer. Says that otherwise, French determined not to sign.