File No. 893.772/1054.

Minister Calhoun to the Secretary of State.

No. 59.]

Sir: Having reference to the department’s telegram of June 28, and to the legation’s telegrams of July 9 and 14,1 in reply thereto, all relating to the Hukuang loan agreement, I have the honor to transmit herewith copy of the identic note of July 13 presented to the Wai-wu-Pu by the English, German, French, and American legations, and also a copy of the note presented on the same date by the English and American legations, the two notes relating to the aforesaid agreement.

I have, etc.,

W. J. Calhoun.
[Inclosure 1.]

Minister Calhoun to the Prince of Ch’ing.

No. 18.]

Your Imperial Highness: On the 6th of June, 1909, the representatives of the British, French, and German banks concluded an agreement for a loan for the construction [Page 289] of the Hupei-Hunan section of the Hankow-Canton Railway and of the Hupei section of the Hankow-Szuchuan Railway with his excellency the grand secretary, Chang Chih-Tung, duly invested by imperial edict with full powers to act on behalf of the Imperial Chinese Government. The text of this agreement was initialed by the contracting parties as final and binding, subject to sanction by imperial edict. The banks were at the same time informed that the necessary memorial would be prepared without delay and that the imperial sanction might be looked for in 10 days.

While awaiting the communication of the imperial sanction, the British, French, and German banks were informed that the American Government had reminded the Imperial Chinese Government of prior engagements constituting a claim to participation in the loan, and the banks were requested by the Wai-wu Pu to arrange for the admission to the agreement of an American group. Subsequent negotiations between the British, French, and German banks and the representative of the American group with the cooperation and approval of the Imperial Chinese Government, resulted in a supplementary agreement providing for American participation on a basis which satisfied all parties.

More than a year’s time having elapsed since the conclusion of the agreement of June 6, 1909, and a reply to the legation’s note of February 16, 1910, reminding your Government of their engagements under that agreement having not been received, I am now instructed to request your imperial highness to obtain imperial sanction for the aforesaid agreements to be definitely signed and put into operation for the benefit of the commercial development of China and of her foreign relations.

I would ask your highness to kindly provide me with a reply to my Government’s desire, as above stated, and avail myself of this opportunity, etc.,

W. J. Calhoun.
[Inclosure 2.]

Minister Calhoun to the Prince of Ch’ing.

No. 19.]

Your Imperial Highness: With further reference to my note No. 18 of July 13, 1910, requesting the sanction of the Imperial Government to the agreement between the British, French, German, and American banks in connection with the loan for the construction of the Hupei-Hunan section of the Hankow-Canton Railway and of the Hupei section of the Hankow-Szuchuan Railway, I have the honor to remind your highness of the promise made by you to the British minister and to my predecessor Mr. Conger in August, 1903, and to point out that in accepting the present loan agreement, this promise must henceforth be held to extend to France and Germany as well as to the two countries to whom it was originally made.

I avail, etc.,

W. J. Calhoun.
  1. Not printed.