576

2

Sir Ernest reminded his Highness that, over and above the preliminary Agreement⇓ concluded by his Excellency Sheng Hsuan-huai, on behalf of the Chinese Government, with the British and Chinese Corporation, there were the undertakings of the Chinese Government as registered in correspondence between Sir Claude MacDonald and the Tsungli Yamen, under which certain railways were to be constructed by British Syndicates on terms not inferior to those granted in the case of the Luhan line. The Canton-Kowloon and the Soochow-Ningpo Railways were two of those mentioned in the undertakings. These and the preliminary Agreement were explicit engagements which His Majesty's Government required the Chinese Government to carry out. His Highness should bear in mind that it was the Chinese Government to whom he applied in the matter, not the Wai-wu Pu, and it was for the Chinese Government to see that the Canton Viceroy fulfilled those engagements.

His Highness said that the Viceroy and the provincial officials had their difficulties, and these must be borne in mind by the Wai-wu Pu, who could not use coercion in ench a case. He would have to look up the correspondence between Sir Claude MacDonald and the Tsungli Yamen to which Sir Ernest had referred and the purport of which he had forgotten. The preliminary Agreement contained a proviso that local difficulties should be discussed with the Viceroy, and that was only right and proper.

The Chinese text of this proviso was referred to, and it was pointed out to his Highness that it read, "when his Excellency the Viceroy is consulted, any local difficulties will be adjusted." Sir Ernest again pressed his arguments, and stated that he had received instructions from His Majesty's Government to warn his Highness that China would not be permitted to disregard these engagements. It was no answer to give to His Majesty's Government that the local people wished to build the railway themselves. He wanted to know, for the information of His Majesty's Government, whether China intended to keep to her engagements.

His Highness assured Sir Ernest that the Wai-wu Pu were in correspondence with the Viceroy and that the matter was not one which could be hurried. If Sir Ernest persisted in hurrying it, he would be able to do nothing. He also wished to look up the correspondence between Sir Claude MacDonald and the Tsungli Yamen which had been mentioned.

In the course of the above discussion the position of affairs in regard to the Soochow-Hangchow-Ningpo Railway was specially stated, and Sir Ernest's remarks in part referred to both that and the Canton-Kowloon Railway.

As regards the Soochow-Hangchow-Ningpo Railway, his Highness admitted that his Excellency Sheng had been commissioned by the Empress Dowager to consult with the Governor of Chekiang and endeavour to secure the cancellation of the preliminary Agreement. The matter had been referred by the Wai-wu Pu to the provincial authorities. Had not Sir Ernost seen Sheng?

Sir Ernest said he had not seen Sheng since a certain interview relating to the affairs of the Peking Syndicate.

P

ce or Individual.

1905

"Bec

st previous Paper.

Too 02781

HONG KONG

No. 43304

(Subject.)

IREC

DOMESTIC.

C.0.

43304

PEG 7 DEC 05

Haukow-banton Railway

Pluds

Huas copy tet from Peking reporting as to suggestions for admitting Freuch participation in construction

Me Lun

(Minutes.)

Putty B.

8772

C.P.L. 8

at once

(Translation.)

Your Excellency,

-Inclosure-3 io No. 1,

Prince Ch'ing to Sir E. Satow,

September 23, 1905.

I HAVE the honour to acknowledge the receipt of your Excellency's note of the 16th September, stating that the British and Chinese Corporation are ready to proceed to a final agreement in regard to the Soochow-Hangchow-Ningpo Railways, and requesting the Chinese Government to appoint an officer with whom the Corporation may negotiate for that purpose.

I would observe that it is for the local authorities to ascertain whether or no there are difficulties in regard to the construction of the railways before negotiations can be entered upon.

The Wai-wu Pu have requested the provincial authorities to make a careful inquiry, and as soon as their report is received, a communication will be addressed to your Excellency.

In the meantime, I avail, &c.

· L (75; —2003–20000-11-4

taubsequent Papor.

43346

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