File No. 5315/947.

Ambassador Reid to the Secretary of State.

No. 1291.]

Sir: With reference to your telegraphic instruction of April 27 [telegram of Apr. 27, 1 p.m., repeated from embassy at Paris] and to my cable dispatch of the 18th instant, relative to the division of engineering rights on the Hankow-Szechuen Railway, I have the honor to inclose herewith copy of my note to the foreign office, dated May 16, stating that the Government of the United States accept 400 kilometers chief engineering rights on the extension to Ch’eng-tu and 200 kilometers subengineering rights with. Germany on the Hupeh section, together with the foreign office reply, dated May 21, informing me that His Majesty’s Government have learned with great pleasure of the decision come to by the United States Government.

I have, etc.,

Whitelaw Reid.
[Inclosure 1.]

Ambassador Reid to the Minister for Foreign Affairs.

Sir: Referring to your note of the 11th of April relative to the division of engineering rights on the Hukuang Railway, I have the honor to inform you, under instructions from my Government, that while dissenting from the principle of equal division of the Hankow-Szechuen line, the United States Government is disposed to accept 400 kilometers chief engineering rights on the extension to Ch’eng-tu and 200 kilometers subengineering rights with Germany on the Hupeh section, provided such acceptance will close the negotiations.

As will be readily observed, this proposal, while not a formal statement of my Government’s position, is in effect in accord with the views of His Majesty’s Government. It would seem, therefore, that only the acquiescence of His Majesty’s Government remains to bring about agreement between all the interested groups, an agreement which, as you state, would appear all the more urgent on account of recent occurrences in the Yangtze Valley.

I have, etc.,

Whitelaw Reid.
[Inclosure 2.]

The Minister for Foreign Affairs to Ambassador Reid.

No. 17548/10.

Your Excellency: I have received your excellency’s note of the 16th instan stating that the United States Government are disposed to accept 400 kilometers [Page 280] chief engineering rights on the extension of the Hankow-Ichang line to Ch’eng-tu and 200 kilometers sub engineering rights on the Hupeh (German) section, provided such acceptance will close the negotiations.

His Majesty’s Government have learned with great pleasure of the decision come to by the United States Government. They understand that a meeting of the four groups concerned is to be held in Paris on Monday next, May 23, for the purpose of confirming the arrangement now arrived at.

I have, etc.

(For the Secretary of State):
F. A. Campbell.