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

AFFAIRS OF CHINA.

CONFIDENTIAL

90

[September 5.]

SECTION 14 NOV 06

[30181]

(No. 162.)

No. 1.

Mr. Carnegie to Sir Edward Grey.-(Received September 5.)

(Telegraphic.) P.

PLEASE refer to your telegram No. 157. Canton-Kowloon Railway.

Peking, September 5, 1906.

According to the last information received from Bland, little progress has been made in the negotiations which began on the 23rd ultimo.

Shanghae-Nanking Railway Loan.

The statement made by Bland is not correct. No definite date was fixed by Tong for his decision. See my despatch No. 287 of the 28th June. I have taken, and am taking, all possible steps to lessen delay, and the impression which Bland apparently gives, that representations are not being made by His Majesty's Legation, is also not correct.

[30172]

(No. 163.)

No. 2.

Mr. Carnegie to Sir Edward Grey.--(Received September 5.)

(Telegraphic.) P.

YOUR telegram No. 156.

Burmah-Yunnan Railway.

Peking, September 5, 1906.

I asked for the views of His Majesty's Consul-General at Yünnan, to whom I repeated your telegram. He has sent the following reply:

"There is no need, in my opinion, for the Chinese Government to be informed. The survey has been agreed to by the Yunnan Government, which has the power to do so, and is quite expected by the Governor-General to take place during the present year.

"One party should be sent by the Indian Government to Tali, along the Tonquin-Yünnan Railway route, and another viâ Tengyueh. The two parties should proceed together from Tali, where they should meet, to Kunintu. All questions of routes and of their practicability would in this way be settled."

I concur in the view that there is no necessity for communicating with the Chinese Government; no question was ever raised regarding the survey of the Bhamo-Tengyueh route. See Sir E. Satow's telegram No. 24 of the 2nd February, 1905.

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