2
I note that it is also requested that the monthly appropriation of funds from railway account for the Director-General's expenses may be remitted to the Board.
It is scarcely necessary for me to state that your Excellency's resignation of the Director-Generalship of the Shanghae-Nanking Railway must be a matter of sincere regret to the British and Chinese Corporation, your Excellency's intimate knowledge of the affairs of this enterprise and keen interest in its welfare being fully recognized and appreciated.
In reply to your present communication, I would request that the attention of the Board of Communications may be drawn to the fact that, to conform to the terms of the Shanghae-Nanking Railway Loan Agreement, the appointment of a Director-General is essential, and that in the absence of an incumbent for this post, the regular administration of the railway's business is impossible. As your Excellency is aware, there are at the present moment several questions calling for consideration and settle. ment-questions seriously affecting the future prosperity of the railway and the respective interests of the Chinese Government, the bondholders, and the Corporation- I would therefore respectfully suggest that the appointment of a Director-General be dealt with as a matter of urgency,
As regards the appropriation for the Director-General from railway funds, which is a matter outside the scope of the Loan Agreement, requiring in the first instance consideration by the Board of Commissioners, I am now in communication with the Corporation's Joint Managers at Shanghae. In the meanwhile, and pending the appointment of a Director-General, I would request the honour of an early interview with the Board of Communications, in order that I may be informed of the Board's views on this question and other matters of importance, notably those referred to in the letter which I had the honour of addressing to your Excellency on the 31st December last.
I have, &c.
(Signed)
J. O. P. BLAND.
[This Document is the Property of His Britannic Majesty's Government.).
[B]
AFFAIRS OF CHINA.
CONFIDENTIAL.
(10928]
(No. 99.
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received April 6.)
Confidential.)
641
14492
RE: 24 APR 07
[April 6.j
SECTION 3.
Sir,
Peking, February 21, 1907. THE policy of the Manchu Government in filling important posts in the country with Manchus instead of Chinese, to which I alluded in my despatch No. 34 of the 21st ultimo, has been illustrated in a marked manner within the last few days by the appointment of Fêng Shan to be General-in-chief of the four divisions of the army which were recently transferred from the control of the Viceroy Yuan to that of the Ministry of War in Peking.
This step, although based on the very natural desire to make the army a national institution, bad also for its object the curtailment of the military power of the Viceroy which he had gradually built up by successive additions to the army. He retains command of two divisions, but is left apparently without adequate means to support them.
The new General who now takes command of some 45,000 of the picked troops of of the Empire is stated to have been a minor police officer a few years ago and to owe his present elevation to Court favour.
Foreign experts, more especially Colonel Aoki, the Japanese Military Attaché, whose opinion is entitled to weight, pronounce him to be quite incompetent, and the Viceroy is said to have been so much annoyed at seeing his troops pass into the hands of such an unworthy successor that he asked leave to hand over charge direct to the Board of War.
The one department in which the Chinese have received credit from foreign observers for having made substantial progress is the array reorganization, and if with the approaches to their capital still in foreign military occupation they take a retrograde step of this kind, there seems ground for apprehension that the efforts of the reformers in other directions may be similarly frustrated.
I have, &c. (Signed) J. N. JORDAN.
[2450 -3]