[This Document is the Property of His Britannic Majesty's Government.]

SOUTH-WEST CHINA.

CONFIDENTIAL.

No. 1.

115

[July 17.]

SECTION 1.

(No. 9.)

My Lord,

Consul Litton to the Marquess of Lansdowne.—(Received July 17.)

His Majesty's Consulate, Teng Yueh, June 11, 1905. I HAVE the honour to draw your Lordship's attention to the question of the proposed light railway from Bhamo to Teng Yuch.

Owing, as I understaud, to pressure of other work, Mr. A. Lilley, the Engineer-in- chief selected by the Government of India for the survey of this line, and his staff, did not reach Bhamo till April. It was therefore impossible to complete the work before the commencement of the rains rendered further operations impossible, but I understand that some progress was made towards a detailed survey between Bhamo and the Chinese frontier by Mr. Lilley's assistants.

Mr. Lilley, who has much experience in this particular kind of work, made a reconnaissance as far as Teng Yueh, and returned to the frontier after having spent about four weeks on the Chinese side.

It would, of course, be out of place for me to attempt to anticipate his official report; but I may mention that his first impressions appear to be favourable. He is of opinion that the line is quite feasible and would not be exclusively expensive, though there are two short sections which would undoubtedly be costly; but the total length from Bharno to Teng Yueh would probably not be over 125 miles.

As a quite rough estimate I understand that Mr. Lilley puts the cost at 750,000Z., but this depends largely on an uncertain quantity, namely, the amount and the quality of local labour available. Comparing the populousness and fertility of the country which the line would traverse with districts already traversed by Indian railways, Mr. Lilley is of opinion that the line may reasonably be expected to pay; such an opinion from an officer of so much experience is important. Mr. Lilley's suggestion to me was that he should, as soon as the rains are well over, say in November, return with his party and make a final and definite survey, including the pegging out of the line. Such a survey would necessitate the cutting of a path along the cliffs near the Taping River in Chinese territory in places which would otherwise be inaccessible.

If, as I anticipate, a favourable report is received from Mr. Lilley, I am of opinion that, in view of the progress which the French railway is now making, the policy of pressing forward the final survey of the Bhamo-Teng Yueh line will probably commend itself to your Lordship and to the Government of India.

In this case, I would venture to point out that, in order to avoid loss of time, it is advisable that the negotiations necessary to obtain the requisite concession for the construction of the line from the Chinese Government should procced concurrently with the detailed survey, and that the character of this survey should also be explained to the local authorities, as otherwise they may raise objections to the cutting of paths and the planting of pegs in their territory.

In view of the concession granted to the French for a railway to the provincial capital, the Mandarins can hardly refuse to us this concession for 90 miles in a remote part of their territory which is chiefly inhabited by nou-Chinese tribes; but that there will be obstruction, delay, and tergiversation may be accepted as exceedingly probable. I understand that the Viceroy of Yunnan has already mentioned to the Consul General that the Yunnan Government would probably wish to construct the part of the line which would traverse Chinese territory themselves, as it is out of the question that they could raise the capital, or if they could raise the capital that they could construct the line, or if they could construct the line that they could manage it when constructed; such a proposal must be regarded as a Chinese device to stave off the whole scheme.

As the line is in some measure an answer to the French railway, it is essential that it should be constructed as quickly as possible; as the total length is only to be some 125 miles, it is essential that the whole line should be under one control, and that that control should be British.

[2079 r-1]

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