File No. 5315/416a.
The Secretary of State to Chargé Fletcher.
Washington, August 6, 1909.
Mr. Knox states that in replying to the proposition of the Chinese Government, made to this Government through Mr. Rockhill, as recited in department’s telegram of July 27, Mr. Fletcher may arrange for American participation in the pending railway loan on the basis that American bankers take one-fourth of the loan and in the same proportions are to have and enjoy all the rights, powers, privileges, and. discretions granted to and vested in the English, German, and French bankers under the terms of the agreement of said bankers with His Excellency Chang Chih-tung, inclosed in dispatch of June 9; and further that Americans and American goods, products, and materials shall be entitled to the same privileges and. preferences reserved in said agreement to British, German, and French nationals and materials.
Adds that for each of the two railroads named in said agreement there shall be a board of engineers, the chairman of each board to be the chief engineer; an American engineer, to be approved by the American bankers, shall be a member of each board; the chairman of the Hupeh-Hunan section to be English; the chairman of the Hupeh section of Szechuen-Hankow Railway to be German; an American chief engineer shall be chosen for the next section of the Szechuen-Hankow line constructed by foreign capital; and that American bankers are to have their proportionate representation in the purchasing agencies for the railroads to be constructed and their proportionate share of all advantages therein.