File No. 5315/574.
The Secretary of State to Ambassador Reid.
Washington, November 11, 1909.
Mr. Knox quotes the following, to be repeated to Berlin and Paris:
This Government is highly gratified to learn that the settlement of the Hukuang loan as contained in your telegram of November 9, 6 p.m.—namely, “that an American engineer should be appointed for Hsiangyang-Kuangshui section of 200 kilometers to cooperate with and to be subject to general direction of the German chief engineer; appointment American engineer to be recognized by Chinese Government by letter; by private arrangement Hankow-Ch’eng-tu-Szechuen section to be divided as follows: First section, 500 kilometers, French chief engineer; second, 600, American chief engineer; and third, 500, English chief engineer”—is acceptable to His Imperial German Majesty’s Government provided that American engineer for Hsiangyang-Kuangshui section will not interfere with judgment of German chief engineer regarding purchase of materials. This condition is agreed to by the United States on the understanding that it shall in no way prejudice the rights of our nationals for the same privileges and preferences with regard to materials and for a voice in the selection of purchasing agencies as already agreed upon.
Believing that the powers interested are now as one as regards conditions of the Hukuang loan, it is hoped that His Imperial German Majesty’s Government will at once cause instructions to be sent to the German representative at Peking to sign the agreement. You will urge an immediate favorable reply.
States that inasmuch as the above settlement is understood to be in harmony with the proposals of the British Government as stated in Mr. Reid’s telegrams of October 18 and 20,1 it is hoped that the British Government will at once cause instructions to be issued to the Hongkong and Shanghai Banking Corporation to sign the agreement. Directs him to urge an immediate favorable reply.
- Not printed.↩