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cannot be held by British subjects, I will forward to you a copy of the Governor-General's communication. I took the opportunity to repeat that, even as regards railways altogether in the interior, such as the projected Yunnan-Szechuan line (from Yunnan-fu to Suifu), I considered that the policy of excluding foreign capital is suicidal. The sum named in the prospectus of the Company now under discussion—20,000,000 taels (or, say, 3,000,000l)—would not be sufficient for a line of 400 miles through difficult country, while the Chinese have not yet acquired the necessary experience to enable them to undertake so large a work unaided.
I may add that the Governor-General's delegates told me that his Excellency recognizes that Great Britain is entitled to equal treatment in Yünnan with France, and that, as far as this rests with him, he would most willingly accord it. But they appeared to think that a light railway from the Burmah frontier to Tengyueh was not altogether in the same category as the French metre-gauge line from Tonquin to Yunnan-fu, the provincial capital. They personally thought that, for the light line in question, either "province," "Yunnan and Burmah, might construct its own section. They did not believe that it would be found practicable to extend the line to Tali and Yunnan-fu.
I answered that it was precisely in order to inquire into such practicability that permission had been asked, and, as they knew, accorded by their Governor-General, for engineers from Burmah to survey, probably this next cold season, the country between Tengyueh and Tali, Further than this, I was not acquainted with the wishes of the Indian Government. All that I am concerned with just now is to see that I do not commit myself in any way pending the communication to me of those wishes.
The delegates then left.
I learn, from what I believe to be a trustworthy source, that the words "and Tengyueh" were inserted because it is believed that Chinese in the Straits and in Burmah will be more ready to subscribe to a Bhamo-Tengyueh than to a Yunnan-Szechuan scheme. I do not expect that the ordinary Baba will be induced to invest in a railway, especially a railway under Chinese official control, that is, to unite two provinces in which he, as a Kuangtung or Fukien man, takes little or no interest. If it could be made out that the railway is to connect with British territory, or that the British Government views it with approval, Miao's mission might prove more successful. Hence, probably, not only the insertion of the words "and Tengyueh," but also the present request to your Excellency.
I have been, I need hardly say, careful not to undertake to do more than simply transmit the request, which, on the face of it, does not ask for support to be given to Miao taotai, but merely such consideration and protection as is implied in the term "chao-liao" (to look after).
I have, &c.
(Signed)
Inclosure 2 in No. 1.
W. H. WILKINSON,
Ting, Governor-General of the Yun-kuei, to Consul-General Wilkinson.
(Translation.)
August 23, 1906. THE Governor-General has been honoured by an Imperial Rescript assenting to a Memorial, in which he represented to the Throne that as the expenditure requisite for the construction by Chinese of the Yünnan--Szechuan Railway will be very heavy, it is necessary to extend the area within which shares should be offered, in order that work on the road may reach completion. The officials, gentry, scholars, and merchants of the provinces along the sea and the river (Yang-tsze) will be from time to time invited to subscribe; but there are at the trading centres of the Eastern and Southern Seas very many Chinese merchants of wealth and standing who bear an ardent affection towards the land of their forefathers. Were persons sent to urge them to assist, there should be no difficulty in raising large sums,
Accordingly, the Governor-General has appointed Taot'ai Miao Kuochun, an expectant Intendant in Yunnan, to be General Manager of the Yunnan-Szechuan and Tengyueh Railways, for the purpose of collecting subscriptions. He will carry with him scrip to each port in the Eastern and Southern Seas, where he will invite Chinese merchants to subscribe the amounts of the shares, and when these are collected he will return to Yunnan to commence work.
Now, the most flourishing of all ports in the Southern Seas is Singapore, and Singapore is a British possession. It becomes, therefore, the duty of the Governor-General to write to the Consul-General and request him to be good enough to communicate with the Governor-General of Singapore, asking his Excellency to give instructions to the local authorities to carefully look after Miao taot'ai on his arrival within the jurisdiction.
Expressing an earnest hope that all this may be done, the Governor-General requests the favour of a reply.
A necessary communication.
Dated Kuang-hsu, 32.7.4 (August 23, 1906).
Inclosure 3 in No. 1.
Yunnan-Szechuan and Tengyueh Railways: Provisional Share Certificates.
(Translation.)
THE main object of the Company in issuing shares is the construction of lines for the expansion of trade and the preservation of autonomy,
2. The Company is issuing shares for the construction, by ourselves, of the Yunnan-Szechuan Railway, and that of Tengyueh. To complete the entire work will require about 20,000,000 taels,
3. The Company has actually, in official and community shares, 4,000,000 taels. 4. At each port. when the number of shares issued is complete, the shareholders may elect some thoroughly trustworthy firm to be the Agency at that port for the issuing of shares in the Yunnan-Szechuan and Tengyueh Railways. Any shareholder having occasion to do so can apply direct to the Agency; the Agency having occasion can write to the Tien-shun-hsiang firm at Canton, who will forward the letter to the head office. The head office may likewise communicate, should need arise, with an Agency through the Tien-shun-hsiang firm.
5. The Company takes for its standard the double-dragon dollar. Payments at outports remitted by means of negotiable instruments must make up the amount at the rate of the day for such dollars.
6. The Company's share certificates are being printed, but are not yet ready. When the amount of the subscription has been settled, the agent concerned will tear out and issue a receipt, which will be exchanged for a share certificate when these are ready.
As regards the subscription, it may be paid in full at once, or it may be paid by instalments. In any case a note will be made at the top of the triplicate receipt, stating how the instalments are to be, the number of this particular instalment, and the amount in dollars. A seal will be thereupon impressed on the triplicate receipt. Instalments will not exceed five, and the interval between each call will be limited to three months.
7. Where subscriptions to the amount of 100,000 dollars have been raised at any port, a Director may be elected to proceed to Yünnan and assist in the management of the line. If he is unwilling to proceed to Yunnan, well and good.
8. A subscription for a 50-dollar share will draw interest as soon as he has paid up 10 dollars of the amount. Subscribers to 10-dollar or 5-dollar shares must wait until the whole amount of the share has been paid up before they can draw interest. A subscriber to several shares payable by instalment will draw interest on the instalments already paid up.
9. When the Company's lines are completed, and traffic has begun, a balance of receipts will be taken once a-year. After deducting expenses under each branch, and interest payable, 10 per cent. (of the profits) will be set aside as reserve. When the reserve fund amounts to one-half the capital, payments into it will cease. The remainder will be divided into ten parts. Three parts will go to the State as royalty; five and a-half parts will be distributed among the shareholders as dividend; one part will be for repairs; half a part as bonus to the employés of the Company.
10. A subscriber can only draw interest on his shares; he may not withdraw the capital. If he is hard pressed, he may sell to a Chinese subject only, he may not sell to a non-Chinese. When transferring by sale his shares he must report to the Agency, in detail, the name and address of the purchaser. The Agency will transfer the shares to the latter and will write to the Tien-shun-hsiang, who will report to the Head Office, so as to insure the proper checks. Should a share certificate be lost, the shareholder must advertise, and at the same time inform the Agency. If after three months no...