§ 25. Major ROSSasked the Secretary of State for Foreign Affairs if the British Legation in China has protested and, if so, with what result, against appropriations from the revenues of the Pekin- Mukden Railway on which British loans are secured?
Mr. A. HENDERSONAs the answer is rather long, I propose, with the hon. Member's permission, to circulate it in the OFFICIAL REPORT.
§ Following is the answer:
§ I presume that the hon. Member refers to the report which has appeared in the Press that a contract has been signed by the Netherlands Harbour Works and the Pekin-Mukden Railway for the construction of a harbour at Hulutao, and that the cost is to be paid by the allocation of funds from the earnings of the railway.
§ His Majesty's Minister in China has been instructed to represent to the Minister for Foreign Affairs that the charging of any new loan on the security of the Pekin-Mukden Railway, except through the British and Chinese Corporation, constitutes a breach of Article 5 of the Railway Loan Agreement concluded between the corporation and China in 1898, against 1851 which His Majesty's Government in the United Kingdom would be obliged vigorously to protest. His Majesty's Minister has also been instructed to urge the Chinese authorities to allocate the surplus earnings of the railway in full for the payment of the outstanding debts of the railway. He has also been instructed to represent to the Chinese Government that the contract reported to have been concluded with the Netherlands Harbour Works should not be put into execution before those debts have been fully met, and until the consent of the corporation has been obtained to any charge being made on the earnings of the railway.
§ I have received no report as to what has been the result of Sir Miles Lampson's representations to the Chinese authorities.