§ Mr. LONSDALEasked the Secretary of State for Foreign Affairs whether the arrangement reported to have been concluded with regard to the construction of the Canton-Hankau Railway will insure that British firms will have first option of executing orders for materials purchased out of China, in accordance with the agreement signed on 9th September, 1905, with the Chinese Government?
§ The UNDER-SECRETARY for FOREIGN AFFAIRS (Mr. McKinnon Wood)I understand that the arrangement just concluded contemplates the distribution, in equal proportion so far as is possible, of orders for material among the firms of the three countries who are parties to the arrangement. This applies to the Canton-Hankow line, as well as to the Hupeh section of the Szechuen line, and to any other lines which may be constructed in the future. I must point out that the agreement of 1905, to which the hon. Member refers, did not exclude competition from foreign firms as to the terms to be offered to the Chinese Government, though the question as to the limits beyond which such competition would not be in accord with the spirit of the agreement is one which His Majesty's Government found it necessary to raise in the course of the negotiations.
§ Mr. LONSDALEIs the hon. Gentleman aware that this railway is to be constructed by British capital, and that the understanding arrived at at the time was that preference should be given to British firms with regard to the supply of materials?
§ Mr. McKINNON WOODNo, Sir, the statement of the hon. Member is not correct.