[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[10917]
No. 1.
51 C.O
[April 6.]
16523
SECTION 3.
RECE
REC 9 MAY 07]
Sir J. Jordan to Sir Edward Grey.-(Received April 6.)
(No. 88.) Sir,
Peking, February 16, 1907. THE desire of the Chinese to build railways with their own resources, or with Japanese technical assistance only, continues unabated. I have the honour to inclose two extracts from the "Nan Fang Pao " of the 29th and 30th Jannary which are worthy of attention, as showing the efforts made in the two sea-bound southern provinces, Kuangtung and Fukien, to construct small local lines without foreign capital or engineers. It will be noted that the enterprise is largely promoted by Chinese who have lived abroad, chiefly in British Colonies, and that the Chao-chou-Swatow line, the only purely Chinese undertaking of the kind which has reached the stage of successful working, owes its existence to â Chinese millionaire of the Straits Settlements.
The attempt which is being made to raise native capital for the Canton-Hankow line is attended with all the malversation characteristic of native methods, and augurs badly for the success of Chinese railway enterprise on a large scale. The accompanying Memorandum on the subject is interesting, as showing the utter confusion into which the affairs of the Company have fallen, and as proving conclusively that the Chinese people will never be able to provide anything like an adequate railway system for their country, unless they can eliminate the official element altogether from the management of the enterprise, aud develop a higher sense of integrity in the control of funds contributed for a common purpose.
A short line of railway from the Treaty port of Kiukiangto Nan Chang, the capital of the province of Kiangsi, is encountering similar difficulties, and in this case the promoters seem to have become convinced that their only chance of success is to have recourse to a foreign loan. The Memorandum, which I have the honour to inclose, contains the latest information which has reached the Legation on the subject, but as it is reported that a Belgian Syndicate has provided the necessary accommodation without requiring any security, I have telegraphed to His Britannic Majesty's Consul at Kiukiang for further details. If true, this action on the part of the Belgians would constitute a new departure, which might militate seriously against the more cautious policy of British capitalists in their financial dealings with Chinese provincial authorities.
I have, &c.
(Signed)
J. N. JORDAN.
Inclosure 1 in No. 1.
Extract from the "South China Daily Journal" of January 29, 1907.
RAILWAY ENTERPRISE IN SOUTH CHINA.
AS is well known, the first railway built in South China is a portion of the Canton- Hankow Railway which runs from Canton city to Samsbui, on the West River, a distance of 31 miles. The construction of the main line to Hankow, which, when completed, will be about 720 miles, was suspended in the autumn of 1905, when the Concession to the American-China Development Company was revoked, and the undertaking restored to the hands of the Chinese. Since that time very little real progress has been made in resuming the work of construction, but by the latest news from Canton we are informed that about 12 miles of the main track, which was partly finished when the Americans handed over the undertaking, is nearing completion, and that it will be opened to traffic soon after Chinese New Year.
The second railway built in South China is the Chao-chou-Swatow line, and it is the first railway built and completed entirely with Chinese capital. There is not a penny
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