§ Earl WINTERTONasked the Secretary of State for Foreign Affairs whether the principle of spheres of influence regarding railway concessions in China is still in existence; and, if so, how Germany and Russia justify their claim to participate in the proposed Hankow-Canton and Han-kow-Szchuen loans?
§ Sir E. GREYThe principle of spheres of influence regarding railway concessions in China has never been formally repudiated. It is a question how far the German and Russian participation referred to is in accordance with the spirit of the agreement between the groups, but in any case His Majesty's Government would in similar circumstances claim reciprocity on be-1574W half of British groups. I must point out, however, that there is an important distinction between participating in a railway applied for and approved by one party to an agreement in what is supposed to be the special sphere of that party, and applying for such a railway or railway loan in which that party has no share and to which it is known to object.