તા.

305

DOMESTIC.

4.

The application for a Concession for a railway to Tung-kun and Shek-lung is a new departure on the part of the French authorities. It is of importance in that, if granted, such a Concession to the Franco-Belgian Syndicate would clash with another proposal, already of some years' standing, for a railway from Canton to Hong Kong. Some particulars and correspondence respecting the latter scheme were furnished in despatch No. 2 from this Consulate-General in 1899, and in the Intelligence Report for the June quarter of that year.

I may add that the United States' Consul has written to the Viceroy with reference to French applications for railways in Kuang-tung and Kwangsi, stating that, if any Concessions are granted to the French Syndicate, whether for single or double lines of railway in the two Provinces, such lines will sooner or later clash with those of the Yueh-han Railway Syndicate, and that he is therefore opposed to any such Concession being granted.

I have, &c.

(Précis translation.) Sir,

(Signed)

Inclosure 2 in No. 3.

Viceroy to French Consul, Canton.

JAMES SCOTT.

March 22, 1902.

I HAVE the honour to acknowledge the receipt of your letter pointing out that the present unseasonable weather will result later in popular suffering of a dreadful description; and that the best means of averting this will be to find work for the people and so provide them with a livelihood. You ask, therefore, that the Cauton-Wuchow Railway, on the same terms as the Yueh-han and Lu-han Railways, may be commenced. You add that the Canton-Samsbui section can be left in abeyance for the present, until some satisfactory arrangement can be come to with the Chinese-American (Yueh-han) Syndicate, but ask that the Samshui-Wuchow line may be first taken in hand. You refer also to another line of railway from Canton to Tung-kun and Shek-lung, to be constructed especially for passenger traffic, which you suggest should he also under the same conditions as the Lu- han and Yueh-han Railways, and ask that work upon this may also be commenced.

In reply, I would point out that the proposals of the Franco-Belgian Syndicate for construction of railways have been commented upon by my Foreign Office in a telegram to me as follows:-

4

"The application of the Franco-Belgian Syndicate contains certain provisos open to objection, and cannot therefore be granted on their terms. There is, moreover, no record of this matter ever having been sanctioned. If, however, the question cannot be otherwise dropped, let the Syndicate, as in the case of the Yueh-han Railway, discuss it with his Excellency Shêng.”

I accordingly notified this message to you for communication to the Franco-Belgiau Syndicate, that they might apply directly to his Excellency Shêng to conclude an Agree- ment on the basis of the Yuch-han Railway, and await its sanction by the Throne upon Memorial by the Foreign Office.

This matter must therefore be discussed by the Syndicate with his Excellency Sbêng.

As regards the Kuang-chow, Tung-kun, Shek-lung line for passenger traffic, which it is proposed shall be on the same basis as the Yueh-han and Lu-han Railways, and which you ask may be started at once, I would ask you to first point out the starting-place and the locality of the terminus, and the methods which you propose for carrying out the scheme, when I will, after due consideration, communicate it to their Excellencies (the Foreign Office) for consideration. The matter is an important one, in which I have no power of decision.

[Memo. Tung-kun and Shek-lung are the two large towns on the East River some 40 miles to the east of Canton, and the hinterland of the new territory of the Colony of Hong Kong lies somewhat to the south of them.]

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