Hankow-Canton Railway (British and German Interests).

HC Deb 13 April 1910 vol 16 cc1221-2

Earl WINTERTON

asked the Secretary of State for Foreign Affairs whether it was the fact that an agreement or understanding between Great Britain and Germany regarding German interests in the Shantung Peninsular and British interests in the Yangtse was last year, on the demand of Germany, considered obsolete or ineffective; and whether, in consequence, Germany successfully claimed a right to participate in the Hankow-Canton railway project?

The UNDER-SECRETARY of STATE for FOREIGN AFFAIRS (Mr. McKinnon Wood)

An agreement was come to by British and German financial groups in 1898 in regard to railways in the two districts in question. It was not a formal undertaking by the two Governments. That agreement has not been cancelled, but the German group contended with the British group that it did not apply in the case of the loan for the Hankow-Canton and Hankow-Szechuan railways, and it was not considered advisable to contest this claim, which would only have led to keen competition between the different groups.

Earl WINTERTON

Is it not the case that the Agreement of 1888 was in the knowledge, if it did not receive the sanction, of both Governments, and was regarded as binding upon the citizens of both countries in China, and has not its breach led to serious results?

Mr. McKINNON WOOD

The Agreement was in 1898, not in 1888, and the contention of the German group was that that Agreement referred to the Concession for the building of railways by foreigners. The Germans contend it did not apply to loans for railways, and the British group, on considering the matter, came to the determination I maintained in my answer.

Mr. WEDGWOOD

How could Governments bind their subjects with groups in China? Have they any power to insist that the conditions made by them should bind their subjects in foreign countries?

Mr. McKINNON WOOD

This Agreement was not made between two governments, but between two financial groups. I agree with the hon. Member it would be rather difficult to coerce different subjects by their governments to observe such agreements.