maintain her independence. "Your memorialists are distressed when they consider the extreme danger of the situation, but they think that the best method of meeting it is to proceed ourselves at once with the construction of the Hankow-Kwangtung Railway. Should it be made by degrees, starting from Kwangtung through Hunan to Hankow, it will be seized forcibly before completion, and we fear sufficient funds cannot be raised for hurrying forward its construction. Your memorialist, Sheng, had the intention of employing American capital for the construction of the Lü Kou-chaio-Hankow line, but afterwards when the American, Washburn, came to China, his conditions were found to be too hard, and consequently negotiations were broken off. Your servant was thus constrained to approach Belgium. By acting thus our privileges would not be lost, nor would ill consequences follow. But Belgium is a small country, and her strength is inconsiderable, and often she has pointed out that an unfinished railroad is hardly a sufficient guarantee for the loan. Consequently she is very undecided, but we have hopes that by the adoption of some compromise terms may be arrived at, though the question is extremely difficult. Thus another scheme must be adopted for raising the capital for the southern line. There are grave objections to allowing either England, France, or Germany to undertake the work, and your memorialists suggest that Wu Ting-fang, the Minister at Washington, should be communicated with. He is a Cantonese, and will not fail to do his best to find a scheme." _Great Britain, Papers by Command: China, Number 1, 1899,pages 87-89._ CHINA: A. D. 1898 (March-July). Russian acquisition of Port Arthur and Talienwan. Ineffectual British opposition. Consequent British demand for Wei-hai Wei. Its lease by China.