File No. 5315/981.
The British Government approves the arrangement come to and, subject to
the concurrence of the three other Governments concerned, consider that
the Chinese Government should now be formally requested without delay to
complete the loan agreement of June 6, 1909, already initialed by them,
as well as the subsequent supplementary agreements entered into with a
view to the inclusion of the American group.
Sir Edward Grey suggests that the representatives of the four powers at
Peking should be instructed to address an identic note to the Wai-wu Pu
on the lines indicated, and expresses himself as of the opinion that no
time should be lost in sending out the instructions to tne
representatives at Peking.
The substance of the note in question was cabled to the department
to-day.
[Inclosure.]
The Minister for Foreign
Affairs to Ambassador Reid.
Foreign Office,
London, June 7,
1910.
Your Excellency: With reference to my note
of the 21st ultimo respecting the Hukuang loan, as your excellency
is already aware the agreement was signed at Paris on the 24th
ultimo by the representatives of the British, American, French, and
German groups on the following basis:
1. Finance and material to be equally divided.
2. British group to retain full engineering rights on Hankow-Canton
line.
Hankow-Szechuen line to be divided equally between the four groups in
the following order:
[Page 286]
Germans, 800 kilometers chief engineering rights, of which 200
kilometers sub-engineering rights are conceded to the Americans;
Americans, 400 kilometers chief engineering rights, plus 200
kilometers subengineering rights as above; British, 600 kilometers;
and French, 600 kilometers—French and British groups having
exchanged sections.
3. Purchasing agents will follow chief engineers as regards
nationality.
4. American group agrees to accept one-fourth of whole loan in lieu
of former claim to half of Szechuen line.
As regards possible extension beyond Ch’eng-tu, any addition up to
600 kilometers in respect of engineering rights to be equally
divided between American, British, and French groups, and any
further extension to be divided equally between all four groups. I
have now the honor to state that His Majesty’s Government approve of
this arrangement, and, subject to the concurrence of the three other
Governments concerned, they consider that the Chinese Government
should be formally requested without delay to complete the loan
agreement of June 6, 1909, already initialed by them, as well as the
subsequent supplemental agreements come to with a view to the
inclusion of the American group in the former tripartite
arrangement—a step which, it might be pointed out, is in accordance
with the express wishes of the Chinese Government.
In instructing the representatives of the four powers at Peking to
address an identic note to the Wai-wu Pu on the lines above
indicated, I would suggest that the latter should be reminded of the
promise given by Prince Ching to the British and American
representatives in October, 1903, to the effect that should China
desire to build a line from Hankow to Szechuen, and should Chinese
capital be found insufficient, she would obtain the necessary
foreign capital from Great Britain and the United States. It should
at the same time be pointed out to the Wai-wu Pu that in accepting
the present loan agreement this undertaking must henceforth be held
to extend to France and Germany, as well as to the two countries to
whom the promise was originally made.
I trust that the United States Government will see their way to
ratifying the arrangements arrived at. It would seem desirable that
no time should be lost in sending out instructions to the four
representatives at Peking.
A similar note will be addressed to the French ambassador and German
chargé d’affaires in London.
