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

AFFAIRS OF CHINA.

CONFIDENTIAL.

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No. 1.

[October 4.]

SECTION 3.

305

Sir J. Jordan to Sir Edward Grey.-(Received October 4.)

(No. 180.) (Telegraphic.) P.

Peking, October 4, 1906. CANTON-WHAMPOA Railway: Please see my telegram No. 172 of the 18th ultimo. I had an interview with the Board of Foreign Affairs yesterday, at which I was informed that the Chinese Government has not sanctioned the project to which the Canton Viceroy's Proclamation refers, viz., a railway to Amoy from Canton, the first 40 miles of which would coincide practically with the trace proposed for the railway from Canton to Kowloon. The Ministers informed me that, previous to the conclusion of the preliminary Agreement for the Canton-Kowloon Railway, approval had been given to the scheme for a line to Whampoa, 14 miles long.

I asked why, if that were so, no express provision had been made for it in the preliminary Agreement, which, I insisted, it infringed, as being essentially a rival line.

They promised to send me a reply to my note of the 17th ultimo in writing.

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No. 2.

Sir J. Jordan to Sir Edward Grey.-(Received October 4.) (No. 181.) (Telegraphic.) P.

Peking, October 4, 1906.

PLEASE see your telegram No. 160 of 12th September. Yesterday at the Wai-wu Pu I pressed most earnestly on the Ministers the views of His Majesty's Government in regard to pending railway questions, and I think some effect was produced on them.

Their Excellencies repeated the language which Prince Ch'ing used on the 8th ultimo in regard to the Soochow Hangchow-Ningpo line, but Mr. T'ong thought that some arrangement might be come to under which a portion of the capital eventually required should be subscribed by the Chekiangese, and thus a solution satisfactory to both sides, effected.

I said that I would submit to you a definite proposal made to me in this sense.

I do not personally consider that the rival Chinese projects at Whampoa and Soochow are likely to come to anything; but the Chinese Government do not, I think, discourage them, partly because they are afraid of popular opinion, and partly because they think they may prove of use as a means of extracting better terms from the foreign concession holders.

A continuation of our present attitude of firm and patient pressure is what I recommend as the only politic way of dealing with the very difficult situation which now exists here.

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