File No. 5315/925.
Ambassador Reid to the Secretary of State.
London, May 18, 1910.
Mr. Reid reports that he understands that the various groups are in accord as to settlement of Hukuang loan, the United States having 400 kilometers engineering rights on projected and 200 sub engineering rights on actual Hankow-Szechuen line. He says that Mr. Grenfell informs him it is now proposed, and generally approved by the bankers, that if any additional mileage is constructed above the 2,400 kilometers, making a total not to exceed 3,000 kilometers, the additional engineering rights shall be equally divided between English, French, and American groups, and that if additional construction makes the total exceed 3,000 kilometers, all such additional engineering rights above 3,000 kilometers shall be equally divided between the four groups.