File No. 893.77/1616
Minister Reinsch to the Secretary of State
Peking, July 14, 1917, 6 p.m.
Now comes the British Government and instructs British Legation to protest against the American railways in Hupeh and Hunan on the ground that September 9, 1905, Viceroy Chang Chi-tung gave to the British Consul General at Hankow a letter promising that in case foreign capital should be required for railway construction in the above-named provinces the British should be given preference. The letter has not thus far been published. British Chargé d’Affaires has not yet protested but called my attention to his instructions stating that he thought an adjustment of conflicting claims desirable and would hold the protest until we could consider this possibility. I stated that in my opinion such a letter could not defeat bona fide public concession by the Central Government; that our people had been willing to consider cooperation but had found the terms suggested by the British and Chinese Corporation absolutely unacceptable; that I agreed with him that British-American cooperation was desirable and that under present conditions mutual obstruction is contrary to the interests of both of us, also of China. It would seem that at this time a hint to the British Government would be sufficient to cause a change of instructions. Aside from this it is of vital interest to China that the lines already granted the British now held up for three years be built; therefore highly desirable American cooperation should be arranged for these, meanwhile not obstructing such construction of American lines as is possible at present.