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Inclosure 8 in No. 1.
Consul-General Fraser to Sir J. Jordan.
(No. 64.) Sir,
Hankow, October 29, 1906. IN obedience to your telegram No. 25 of yesterday, I have the honour to report on the question of the employment of British engineers on the Canton-Hankow Bailway.
After my telegram No. 14 on the 4th June I saw the Viceroy's Chief Secretary Wang, who told me that the Viceroy was so disgusted with the scandal over the Kwangtung Railway Company that be had decided to have nothing to do with the Hankow-Canton line beyond Yo-chou, and that, therefore the question of employing Mr. Kinder had better be allowed to drop; the chief of three Japanese engineers engaged for the Hupei section of the trunk line westward probably resurveying the short Hupei section of the southern line also.
Though well aware of Mr. Wang's leaning towards the Japanese, I did not press the point in view of Mr. Kinder's disinclination, expressed to Mr. Flaherty when he passed through Hankow in June, to undertake any surveying unless satisfied that construction of the two Hukwang sections would follow within a reasonable time, and be intrusted to an engineer approved by him,
About the 20th September, however, a deputy brought me a message that the Viceroy wanted Mr. Kinder to come and resurvey, and hoped I would write to Mr. Kinder, as his Excellency did not care to lay himself open to a rebuff from Mr. Kinder's employer. I repeated Mr. Kinder's views as given above, and the matter remained in abeyance until, on the 26th instant, the Viceroy sent his Secretary, Mr. Chan, with the inclosed note.
His Excellency the Governor of Hong Kong had in August sent me the despatches exchanged with the Canton Viceroy regarding the reported engagement of a Belgian engineer by the Kwangtung Railway Company, in order that, if I found a favourable opportunity, I might show it to the Viceroy Chang.
After learning from Mr. Chan the details of the proposal that the Viceroy wished me to make on his behalf to Mr. Kinder-which are set forth in my telegram No. 18 of the 26th instant--I told him that I could see no justice in the argument that the Canton Railway Company, being a commercial body, was freed from the obligations which the three provinces alike incurred last autumn to the Government of Hong Kong and His Majesty's Representatives. The Company owed its existence to the fact that the American Development Company's concession had been redeemed, and that redemption was rendered possible only by the help of the British authorities. For a Company that enjoyed a valuable privilege won by British money to fail to give British engineers the first option of constructing the line was, if not literally dishonest, at any rate dishonourable; while to employ an American after China's outery against the conduct of the American concessionnaires amounted very nearly to an insult to our people, who had listened to China's appeal for relief.
Mr. Chan admitted the justice of my argument, but protested that his Excellency Chang could not govern the actions of a Kwangtung Company.
I rejoined that his Excellency Chang had been intrusted with the sole management of the task of resumption, and my representations in favour of granting the loan were received favourably because of the specially high estimation in which His Majesty's Representatives held him on account of the events of 1900 and 1901. In time of need both Kwangtung and Hunan were eager to avail themselves of his good offices; how could they refuse his advice now his task had been carried through with British help? The talk of the Kwangtung section being now independent of Government was a mere quibble. The whole line was to be a Government undertaking when his Excellency gave me the assurances, not confined to his formal despatch of 9th September, 1905, that the provinces concerned and China herself would not prove ungrateful for our kindly aid; and the Chinese Government could not hand over to the Company the benefits of the resumption without at the same time transferring to the Company the complementary obligations incurred by China's Representative. His Excellency Chang occupied a position of special eminence in the eyes of all the provinces, and I could not believe that were be to telegraph to the Canton Company the true and just view of their duty in this matter the Company would not be brought to see the right.
Mr. Chan, having promised to report our conversation to the Viceroy, we turned to other subjects, and upon his departure I thought it desirable to back up his report by the inclosed note to his Excellency Chang.
5
On the 27th instant Mr. Chan called again with questions as to His Majesty's Legation's alleged objections to the proposed new Kuping tael coin, and I tried to make him see the confusion and discredit that must result from calling by the name of an established weight of silver a coin containing nearly 4 per cent. less silver. When at length be professed himself apprised of the point, I suggested that at a personal interview I might be better able to explain to his Excellency the impossibility of giving a fictitious value to a standard coin by any exercise of a Government's credit and power. At this suggestion he expressed much relief, and I hope within a few days to have an interview with the Viceroy.
Mr. Chan then added that the Viceroy quite appreciated my remonstrance as to the Canton Company's action and would consider the wording of a telegraphie admonition to it; but that Mr. Wang said that the Company, intending to engage one British, one Japanese, and one American engineer, had applied to the Chinese Ministers in those countries, and only the Minister at Washington had as yet taken action.
Just as he was leaving, Mr. Chan stated, on Mr. Wang's authority, that the engineer Mr. Kinder was asked to supply would at present be engaged only for resurvey and estimating duties, a modification which increased my desire to see the Viceroy myself.
In accordance with your instructions, copies of this despatch, with its inclosures, have been forwarded to his Excellency the Governor of Hong Kong and to His Britannic Majesty's Consul-General at Canton.
1 bave, &c.
(Signed)
Inclosure 9 in No. 1.
Viceroy Chang to Consul-General Fruser.
E, H. FRASER.
Hankow, October 26, 1906.
[The first part of the note refers to Hou Hu land matters.]
Again, with regard to the engineers who must be engaged for the Yueh-Han line, I am now in receipt of a telegram from Canton stating that it has been decided to engage an American engineer. The Canton line is now under merchant management, and I cannot interfere with their desire to bring in an American. But as regards that part of the line which lies within the boundaries of Hupei and Hunan, I adhere to my decision to engage a British assistant engineer for making surveys and estimates. I am sending my interpreter, Chang, to your Consulate to discuss in a personal interview what the position, salary, and powers of the engineer are to be.
Inclosure 10 in No. 1.
Consul-General Fraser to Viceroy Chang.
Hankow, October 26, 1906.
I HAVE the bonour to acknowledge the receipt of Excellency's note brought to me this morning by your interpreter, Chang. The substance of our conversation on the subjects mentioned therein was no doubt promptly repeated to your Excellency. I am reporting to His Majesty's Minister at Peking and at the same time writing to Mr. Kinder.
I wish, however, to make some observations with regard to the Yueh Han line. In the first instance it was Sheng Kung Pao who made the Agreement with the Americans and the Chinese Government, considering that it was derogatory to Chinese rights, afterwards appointed your Excellency to devise means of resuming the Concession. Your Excellency then consulted with me and asked me to get a large loan from the Hong Kong Government for resumption purposes. The railway was at first under the management of the officials of the three provinces concerned, but later on Canton decided to convert it into a commercial undertaking. Quite irrespective of its being an official or commercial concern, I should like to ask whether the Concession could have been resumed had it not been for the British aid afforded. The Canton Railway having
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