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of uncertainty removed from the mind of the Central Chinese Government and from the minds of the greater Viceroys railway construction would soon take place on a much greater scale. With this object in view they have memorialized the Wai-wu Pu, the Ministry of Posts and Communications, and the Viceroys Tuan Feng, Tich Liang, and Yuan-shi-kai on the subject of forming a "China Survey Company."
A copy of the Memorial is attached to this Memorandum for Sir Edward Grey's confidential information. A copy has also been privately placed before the British Minister at Peking and his diplomatic assistance asked for.
At the suggestion of Sir John Jordan, Messrs. Pauling and Co.'s representative in China cabled to London that the Foreign Office should be immediately approached, as without their instructions he (Sir John Jordan) could not assist us in this matter.
Sir Edward Grey will notice in the Memorial that Messrs. Pauling and Co. expressly disclaim any preference to or claim for any railway construction at all. They seek in this scheme no Railway Concessions or political privileges. They offer, in co-operation with a Chinese Director and other subordinate officials to be named by the Chinese Government, to carry out, at a moderate and inclusive price ander all heads, the survey of any line or lines of railway indicated to them. They will hand over to the Ministry of Posts and Communications, on completion of the surveys, all plans, maps, sectious, diagrams, surveys,
&c., together with full estimate of the cost, in order that the Ministry itself may have in its own possession all the information and data necessary to judge what any particular line desired to be constructed would cost, and how long the construction would take, together with a reliable statement as to what such a length of line should earn per annum with due regard to freight and passenger probabilities, Having done this, the Chinese Survey Company would then proceed to the next section of line or system of lines indicated to them, and do the same there. In this way, year by year, the Chinese Government would be in possession of accurate and reliable information as to railway construction, and could shape their future railway policy and financial necessities accordingly.
The former instructions to the British Minister, that he should guide Chinese financial plans into the hands of the British and Chinese Corporation, would remain unaffected.
Messrs. Pauling and Co. might or might not put in tenders for any railway construction that might be subsequently called for. They would therefore respectfully, but most earnestly, beg that Sir John Jordan should be instructed by cable to render such political help as he can to the scheme and Memorial here referred to and inclosed.
Messrs. Pauling and Co.'s representative at Peking on this matter, and who has just reported the result of his interview with the British Minister at Peking, is Mr. Lenox Simpson, whose writings on Far Eastern subjects, under the nom-de-plume of "Putnam Weale," are probably well known to Sir Edward Grey.
The Viceroy Yuan-shi-kai has already expressed his opinion strongly in favour of the China survey scheme. The capital required up to 100,000l. would be furnished by Messrs. Pauling and Co. and Messrs. Émile Erlanger and Co. and their friends, on the security alone of an Imperial Edict bringing the Company into existence. This would provide for the accurate survey of 1,000 miles of railway in the manner described.
The repayments to the China Survey Company would take place at the fixed prices provided when the next Chinese Imperial Railway Loan was issued, whenever that might be.
Sir Edward Grey will notice in the Memorial the offer to take young Chinese appointed by the Government and to train them to become efficient surveyors.
As the surveying parties would be accompanied by an official Chinese Director appointed by the Chinese Government, together with many other subordinate Chinese officials, the actual number of foreigners employed being limited, these surveying parties would cause no umbrage or difficulty to the localities through which they surveyed, because to all intents and purposes it would be an undertaking of the Central Chinese Government itself.
The matter is a pressing and urgent one.
The outcome, if successful, would greatly strengthen British prestige and influence, and lead to an increase of British exports to China.
The estimates of cost have been carefully framed, and are based on actual experience of surveying in the field in China.
Messrs. Pauling and Co. have already dispatched their engineer, Mr. James Ginnell, who is well and favourably known to Sir John Jordan, to assist Mr. Simpson in his nego- tiations.
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They would therefore be very much indebted if, at an early a date as possible, (they could inform Mr. Simpson by cable of the result of their representations to the Foreign Office, and they ask that, for obvious reasons, Sir Edward Grey would be good enough to consider the suggestion of such a China Survey Company as a confidential matter communicated to the Foreign Office alone.
June 4, 1907.
Annex.
Memorandum to be submitted to the Ministry of Posts and Communications in Peking.
THE necessity for the construction of railways within the Chinese Empire is daily growing in importance.
It is almost equally important that the Chinese Government should be in possession of accurate surveys and accurate estimates and reliable local information of the routes to be traversed, before sanctioning by Imperial Edict the construction and repayment of construction costs of any proposed line.
The absence of such information in the past has resulted in the Imperial sanction being given to estimates of cost which have proved quite unreliable, and this has caused great and undesired extra expenditure of many millions being thrown on the Imperial Treasury.
To obviate any recurrence of such a condition of affairs in the future it is absolutely essential, in the interests of the Government, that a scheme such as is now proposed, in general terms, should be approved of by the Government and sanctioned under Imperial authority.
A China Survey Company shall be formed which will place its services and work entirely at the disposal of the Ministry of Posts and Communications. This Company will employ a staff of competent English railway surveyors, who will be under the direction of an English engineer-in-chief, assisted by a Chinese Director appointed by the Government, who will serve as the channel of communication between the surveyors and all local officials of the districts to be traversed and surveyed.
The Agreement that shall be passed between the Chinese Government and the Survey Company shall state the line that is to be surveyed at once, the length of which shall not be less than 500 miles; and the remaining lines to complete the 2,000 miles contracted for by the Survey Company shall be indicated to it before the completion of the survey of the first 500 miles, and in sections of not less than 500 miles, and there- upon the party of surveyors, completely equipped with the necessary instruments and accompanied by the appointed Chinese official, shall commence the survey of the route, and on completion of the whole survey will hand in to the Ministry of Posts and Communications complete and accurate maps and plans with diagrams of the whole line, together with a carefully drawn up estimate of the cost of construction and equipment of the whole of the line. The whole of the above shall be deposited at the Ministry of Posts and Communications at Peking.
The Chinese Government on the completion of the survey of each section of 500 miles, and on receipt of the maps, plans, and estimates referred to above, will pay to the Survey Company in reimbursement of their expenses 1501. per mile of survey completed and mapped, and an extra fee of 5,0001, for surveying, planning, and laying out the terminus sites and station, with workshops at either end of the railway line.
Out of these payments the Survey Company will pay all their own expenses and salaries, as well as the salary of the Chinese Director referred to, and the salaries of the necessary Chinese clerks and interpreters accompanying and working with the survey parties. So that no extra expense will be incurred by the Chinese Government beyond the amounts stated.
The payments due to the Survey Company under this Agreement may be made to the Survey Company either in cash or in orders on the Treasury, to be met and paid whenever the next Railway Loan be sanctioned and obtained by the Imperial Govern- ment. The amount due shail bear interest at the rate of 6 per cent. per annum, which interest shall be payable every six months.
The Chinese Government shall agree to retain the services of this Survey Company until 2,000 miles of new railway routes have been surveyed by it, under the instructions of the Ministry of Posts and Communications and under the inspection of the Chinese Director appointed by the Government.
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