2
to M. Casenave and myself by his Excellency Chang Po-hsi, President of the Board of Communications, on the 11th November, viz., that the Government was not definitely opposed to foreign loans for railway construction, and that if the Viceroy, who had twice memorialized in vain for authority to borrow, still thought there were no local objections to the scheme, the Board would take the matter into consideration. I therefore asked his Excellency to inform me whether, from his point of view, the loan was possible and desirable.
His Excellency replied that he had no intention of incurring another rebuff from the Throne in this matter, but that if the Chinese Government were to rescind the instructions now in force against foreign loans he would be glad to negotiate at once for the amount required to build the Hupeh section of the Yueh-han Railway. He proposed even to carry it into Hunan as far as Changsha, but beyond this it would be impossible to go in the present state of public opinion in that province. (It may interest the Board to know that he spoke similarly of Szechuan, expressing his readiness to borrow for the line to connect Hankow, Hsiang-yang, and Ichang, but saying that the Szechuan gentry, like the Hunanese, were at present violently opposed to the introduction of foreign capital. It is curious to note his admission that, though Viceroy of Hunan, he has no authority or control in the internal affairs of this unruly province. The same admission was made by his Excellency Chang Po-hsi, who, while recognizing the drawbacks of construction and administration by provinces, thought that, in the face of local opposition, the Board of Communications could not enforce a scheme of Government trunk lines, or insist on centralized administration of the railway from Hankow to Canton.)
Having obtained this expression of the Viceroy's views and wishes, I propose, after consultation with M. Casenave, to suggest to the Board of Communications the advisability of obtaining Imperial sanction for railway construction with foreign capital. If this can be done under reasonable conditions, there is reason to anticipate that several provinces, e.g., Kiangsi, Anhui, Fokhien, and Hupeh, will be prepared to avail themselves of the opportunity. I need hardly remind the Board that, when the opportunity occurs, we must be prepared to face energetic and capable competition by our Belgian rivals.
I have, &c.
Gentlemen,
(Signed) J. O. P. BLAND,
(2.)
Representative in China.
Mr. Bland to the British and Chinese Corporation.
HANKOW-CANTON Railway, &c.
Peking, January 17, 1907.
I have the honour to inclose copy of letter addressed yesterday to the Board of Communications by M. Casenave and myself, in regard to railway undertakings in Hupeh and other central provinces. You will observe that in this letter M. Casenave is described as joint representative of the British and Chinese Corporation, Limited, a description not strictly accurate, since I have no instructions to that effect, but requisite, under the circumstances, to conform with the arrangements made by the Corporation with the French group for the Hankow-Canton Railway. I have explained to M. Casenare that this arrangement, necessary for our present purposes, is of its nature provisional, and terminable upon the formation hereafter of a new Company in the event of our proposals being accepted. I hope that the Board will approve my action in this matter.
A copy of our letter to the Board of Communications is also being forwarded to the Chinese Central Railways, Limited, as its subject-matter concerns that Company.
I have, &c.
J. O. P. BLAND,
Representative in China.
(Signed)
(Inclosure in 2.)
Letter addressed by M. Casenave and Mr. Bland to the Board of Communications,
Your Excellencies,
Peking.
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 Hupeh, &c., which formed the subject of conversation at our meeting at the Yuan Chuan Pu 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 Companies which we represent to enter into negotiations with the Chinese Government, or its duly authorized representatives, for the construction of several railways projected in the central provinces, and more especially of the lines from Wuchang to Changsha (a section of the Yueh-han trunk line) and from Hankow to Ichang 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. As regards the Yueh-han trunk line, his Excel- lency 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 from the gentry of Hupeh. He was not disposed to memorialize on the subject, however, without an intimation from the Central Govern- ment to the effect that a loan would be authorized.
As the result of our interview with your Excellencies, we understand that the Board of Communications is prepared to support the construction of provincial railways in general, and the above-mentioned lines in particular, provided that loans can be negotiated under conditions acceptable to the Chinese Government and conforming to the views of the provincial authorities concerned; and we further understand that your Excellencies are prepared to convey to his Excellency Chang Chih-tung an intimation in this seuse.
Regarding the present condition of the money market and the high standing of China's credit as favourable to the successful inception of railway undertakings, under guarantee of the Imperial Government, we have the honour to submit for your Excellencies' consideration our suggestion that the provinces which are now con- sidering the construction of railways, and particularly Hupeb, be notified that any proposals, emanating from the provincial authorities or bureaux, for authority to borrow foreign capital for these enterprises, under conditions acceptable to the Chinese Government, will be supported by the Board of Communications. We venture the opinion that if this is done the present unsatisfactory condition of railway undertakings in several provinces will speedily be remedied, and the desired means of communication economically introduced to the immediate benefit of the Central Government and provinces alike.
In conclusion, we have the honour to state that, so soon as the necessary authority for negotiations has been given, the Companies which we represent are prepared to offer liberal terms for the financing and construction of such fines as may be approved by the Board of Communications and the finperial Government.
We have, &c.
(3.)
Central Chinese Railways to Mr. Bland.
(Extract.)
London, March 15, 1907. You will see that while all official communications addressed to the Chinese authorities or to the British or French Legations are to be signed jointly, yet the conduct of all negotiations in this business, it being recognized that British interests are there predominant, are to be left in your hands, the only obligation on your part
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