File No. 5315/980.
Ambassador Hill to
the Secretary of State.
American Embassy,
Berlin, June 3,
1910.
No. 716.]
Sir: I have the honor to inclose herewith a
copy of a memorandum addressed to the Imperial German Foreign Office on
May 17, relating to the division of engineering rights in the
Hankow-Szechuen Railway line, with the reply of the Imperial Government,
dated May 19, and also a copy of my note to the Imperial Secretary of
State for Foreign Affairs of May 24, containing the ancillary
proposition of the British Foreign Office which had been accepted by the
Government of the United States, together with the reply of the Imperial
Secretary of State for Foreign Affairs, dated May 28.
From this correspondence it is settled that—
- 1.
- Germany appoints the engineer for the first 800
kilometers.
- 2.
- The United States of America appoints the engineer for the
next 400 kilometers.
- 3.
- England and France appoint the engineer for 600 kilometers
apiece of the remaining 1,200 kilometers of the Hankow-Szechuen
line. The United States appoint, further, a subengineer for the
last 200 kilometers of the 800 kilometers allotted
Germany.
It is also agreed by the Imperial Foreign Office 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 the English, French, and American groups; and,
furthermore, that if additional construction should make the total
exceed 3,000 kilometers, all such additional engineering rights above
3,000 kilometers shall be equally divided between the four groups.
It therefore appears that there is entire agreement between the
Government of the United States and the Imperial German Government on
all the points included in the correspondence.
I have, etc.,
[Page 284]
[Inclosure 1.]
Memorandum to the Imperial German Foreign
Office.
American Embassy,
Berlin, May 17,
1910.
F. O. No. 742.
The American ambassador is instructed by his Government to inform the
Imperial German Foreign Office that inasmuch as the French and
British financial groups interested in the Hukuang loan seem now to
have reached an understanding on the basis of an equal division of
engineering rights in the Hankow-Szechuen line, the French
Government accepting a settlement on the basis of a potential 600
kilometers engineering rights on the extension, the United States,
while dissenting from, the principle of such equal division of the
Szechuen line alone, is disposed to accept 400 kilometers chief
engineering rights on the extension, and 200 kilometers
subengineering rights with Germany on the Hupeh section, provided
that this arrangement will close negotiations.
An expression of the attitude of the Imperial Government is
desired.
[Inclosure
2—Translation.]
Memorandum from the Imperial German Foreign
Office.
Foreign Office,
Berlin, May 19,
1910.
The Imperial Government has perceived with interest from the
memorandum of the embassy of the United States of America, dated May
17, 1910 (F. O. No. 742), that the question of the engineers for the
Hankow-Szechuen Railway line is to be settled in the following
manner:
- 1.
- Germany appoints the engineer for the first 800
kilometers.
- 2.
- The United States of America appoints the engineer for the
next 400 kilometers.
- 3.
- England and France appoint the engineer for 600 kilometers
apiece of the remaining 1,200 kilometers of the
Hankow-Szechuen line. The United States appoint, further, a
subengineer for the last 200 kilometers of the 800
kilometers allotted Germany.
The Imperial Government declares its assent to this arrangement of
the question.
[Inclosure 3.]
Ambassador Hill
to the Minister for Foreign
Affairs.
American Embassy,
Berlin, May 24,
1910.
F. O. No. 756.
Excellency: Following the memorandum which
I had the honor to submit for your excellency’s consideration on the
17th instant touching the subject of the Hukuang loan, I am now
instructed by my Government to invite the Imperial Government’s
attention to a further development of the question.
While it is now understood, since the receipt of your excellency’s
memorandum of the 19th instant, that the various groups are in
accord as to the settlement of this loan, the British Foreign Office
submits an ancillary proposition, which it states is now put forward
and generally approved by the bankers, to the effect 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 the English, French, and
American groups; and, furthermore, that if additional construction
should make the total exceed 3,000 kilometers, all such additional
engineering rights above 3,000 kilometers shall be equally divided
between the four groups.
I am further instructed to state that the terms proposed are
acceptable to my Government, and to ask for an expression of the
position of the Imperial Government in the matter.
I avail, etc.,
[Page 285]
[Inclosure
4—Translation.]
Minister for Foreign
Affairs to Ambassador Hill.
Foreign Office,
Berlin, May 28,
1910.
I have the honor to acknowledge with sincere thanks the receipt of
your excellency’s note of May 24, 1910 (F. O. No. 756). I have noted
with interest therefrom that the Government of the United States of
America agrees to the new proposal of the British Foreign Office for
the settlement of the Hukuang Railway question already approved by
the banking groups. It affords me satisfaction to be able to inform
your excellency that the Imperial Government takes the same position
as yoor Government.
At the same time I avail, etc.,
