§ Mr. FELL (for Mr. Lonsdale)asked the Secretary of State for Foreign Affairs whether he is now able to make a statement as to the action taken by His Majesty's Government in reference to the loan for the construction of the northern half of the Canton-Hankau Railway?
§ Mr. T. McKINNON WOODBy an agreement signed 9th September, 1905, the 1141 Chinese Government undertook that, if it was found necessary to borrow money from abroad for constructing the Hankow-Canton Railway (1) British financiers should have priority over others in furnishing a loan, provided their terms were not less liberal than those of the financiers of any other country. (2) If British capital was employed British firms should have the first option of executing orders for material purchased out of China. (3) Half the engineers employed should be of the nationality that found the money. No final agreement for this loan has yet been concluded, and His Majesty's Government have reminded the Chinese Government of the undertaking given by Chang in 1905, and have stated that a loan given to others without any guarantee that the funds would be expended for the purposes for which the money was lent would be regarded as a breach of the spirit of that undertaking.