2
having been 1,000 dollars per mensem in addition to a grant for lodging accommoda- tion. In the end, Mr. Kuong promised to give me a definite reply when the new management had been organized.
I have not, to date, heard from him again, but a few days back I received information to the effect that a Japanese engineer named S. Yamamoto had been engaged. I at once made inquiries of my Japanese colleague as to the accuracy of this report, which he confirmed yesterday, adding that Mr. Yamamoto has a three- years' engagement at a salary of 450 dollars a-month without allowances, His position is, however, subordinate to an Assistant Chinese Engineer, a former class- mate of his in America, who goes by the name of “ Johnson.” I took the opportunity to impress upon Mr. Uyono the British view that, in the light of China's obligation to us in the matter of the redemption of the former concession, the Deputy Chief Engineer should be British. This my colleague scemed to thoroughly understand.
Finally, I can confidently give the assurance that the views of the Hong Kong Government have been made perfectly clear both to the late Viceroy and to Mr. Kuong. I intend now to approach his Excellency Chou Fu, laying stress on the opinion of His Majesty's Consul-General at Hankow, as expressed in his despatch to you No. 64 of the 29th October last, namely, that he could see no justice in the argument that the Canton Railway Company, being a commercial Company, was freed from the obligations incurred by the three provinces concerned in the autumn of 1905 to the Hong Kong Government and His Majesty's Representatives.
I have, &c.
(Signed) R. W. MANSFIELD.
618
[This Document is the Property of His Britannic Majesty's Government.] CO.
CHINA RAILWAYS.
CONFIDENTIAL.
13726
1 19 APR 07
SECTION 2.
[March 23.] Free
[9431]
No. 1.
Sir J. Jordan to Sir Edward Grey.--(Received March 23.) (No. 66.) Sir,
Peking, February 4, 1907. ON receipt of your despatch No. 419 of the 30th November, 1906, I addressed a despatch to Mr. Fraser, His Majesty's Consul-General at Hankow, asking him to report to me any information he might be able to obtain regarding the alleged formation of an Anglo-Japanese Syndicate for the construction of the Hankow- Szechuan Railway, and the other statements contained in the French Ambassador's Memorandum.
In his reply Mr. Fraser states that Mr. Haraguchi was engaged as Railway Adviser by the Viceroy without any reference to His Majesty's Consulate-General, and that he does not promote any interests but Japanese. The Viceroy had always shown a desire to have British engineering aid for the Hukwang portion of the Ilankow-Canton Railway, and Mr. Fraser surmises that his requests for the services of Mr. Kinder, or one of his assistants (see my despatch No. 541 of the 23rd December, 1906), are the ground for the French Ambassador's Memorandum, the facts in which agree with his reports. His Excellency had always combined the Hupei lines westward and southward in his suggestions for railway loans. The Central China Railways (Limited) was the only Syndicate of which Mr. Fraser had any knowledge, and on behalf of which he had approached the Viceroy. It was, of course, possible that such a Syndicate as that mentioned in the Memorandum was working through the Japanese Consulate, but Mr. Fraser thought that he would have heard of the fact.
With reference to the general question of railway construction in Hapei, I have the honour to transmit to you herewith copy of a letter which Messrs. Bland and Caseuave have addressed to the Board of Communications regarding the raising of foreign loans. Mr. Bland's interview with the Viceroy Chang Chih-tung, referred to in this letter, was fully reported on in my despatch No. 540 of the 23rd December.
I have, &c. (Signed) J. N. JORDAN.
Inclosure in No. 1.
Messrs. Bland and Casenave to Board of Communications.
Your Excellencies,
Peking, January 16, 1907. WE have the honour, as joint representatives of the British and Chinese Corpora- tion (Limited) and the Chinese Central Railways (Limited), to address your Excellencies in regard to the questions of railway construction in Hupei, &c., which formed the subject of conversation at our meeting at the Yu Chuan-fu on the 12th instant, and we now confirm the proposals which we submitted on that occasion.
As stated at that interview, it is the desire of the British Corporation we represent to enter into negotiations with the Chinese Government or its duly authorized Represen tatives for the construction of several railways projected in the central provinces, and more especially of the lines from Wuchow to Changsha (a section of the Yueh-hau trunk line) and from Hankow to Tchang and Hsiang Yang. Your Excellencies are aware that on the 12th ultimo Mr. Bland had the honour of an interview with his Excellency Chang Chih-tung, when his Excellency expressed his earnest wish to proceed with these undertakings, essential to the commercial and administrative development of the territory within his jurisdiction, and intimated his readiness to construct the railways by means of foreign loans should the Central Government authorize him to do so. regards the Yueh-han trunk line, his Excellency was of opinion that under existing conditions it would not be advisable to consider the question of construction beyond Changsha, but for that section he would be glad to see a loan negotiated under conditions approved by the Central Government, and he anticipated no opposition
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