17

This Document is the Property of His Britannic Majesty's Government.

AFFAIRS OF CHINA.

CONFIDENTIAL.

[26884]

No. 1.

31828

[Aurst 12.]

16 SEP 07 SECTION 3.

(No. 294.) Sir,

Sir J. Jordan to Sir Edward Grey.-(Received August 12.)

Peking, June 19, 1907. COMMANDANT BAESENS, whose industrial projects I had the honour to report in my despatch No. 270 of the 7th instant, called again to-day, and endeavoured to enlist my support of his scheme. He said that he was proceeding at once to London, where he hoped to secure the necessary financial assistance. He developed at greater length than on the former occasion the proposal for the introduction of steam navigation on the Yellow River. That river was, as he had reason to believe, navigable for vessels of 4 feet draught from Hsi Ning* to Tokto,† a distance of some 1,200 miles.

He looked forward to the time when it would be navigated by steamers, not so large but quite as numerous as those which plied on the Yang-tsze below Hankow. As a complement to the water carriage, he hoped to obtain a concession for the construction of a railway from Tokto to Kalgan. This would revolutionize the trade of Tien-tsin by placing it in easy communication with the distant regions from which it draws the staples of its exports.

I mentioned to Commandant Baesens my impression that the navigation of the Yellow River in this part of its course was seriously impeded by shoals, but he said that a German refugee had, during the troubles of 1900, gone all the way from Lanchow to Tokto on a raft, and found the depth of the water sufficient for vessels of small draught.

I warned him that the scheme was not one which, in my opinion, would be likely to receive much official encouragement in London. It was difficult enough at the present moment to secure respect for engagements which rested upon the basis of Imperial sanction without embarking upon undertakings which had not been properly regularized or officially recognized.

* Approximately 37° latitude and 102° longitude.

[2621 m-3]

I have, &c.

(Signed) J. M. JORDAN,

† Approximately 41° latitude and 111° longitude.

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