2
[This Document is the Property of His Britannic Majesty's Government 1
CHINA RAILWAYS.
►
CONFIDENTIAL.
720
308
[December 14.]
RS-JAN 08
Inclosure in No. 1.
Draft Agreement respecting the Tien-tsin-Yang-tsze Railway.
ARTICLE 18. For the northern and southern sections of the railway respectively, the Deutsch-Asiatische Bank and the Chinese Central Railways (Limited) will act as agents of the Railway Administration, during construction, for the purchase of all materials, plant, and goods required to be imported from abroad. For all important purchases of such materials, tenders shall be called for by the Managing Director; in the case of all tenders, indents, and orders for the importation of goods and materials from abroad, the said agents shall purchase the materials required on the terms most advantageous to the railway, and shall charge the original net cost of the same plus a commission of 5 per cent. It is understood that no orders for material shall be executed or any expenditure incurred without due authorization by the Managing Director.
In return for payment of commission as above stated, the Deutsch-Asiatische Bank and the Chinese Central Railways (Limited), as agents within their respective sections, shall be prepared to superintend the purchase of all foreign materials required for the construction and equipment of the railway, which shall be purchased in the open market at the lowest rate obtainable, it being understood that all such materials shall be of good and satisfactory quality, and that the Railway Administration shall have the right to reject on arrival in China materials which do not come up to specifications. At equal rates and qualities, goods of German and British manufacture shall be given preference over other goods of foreign origin for the northern and southern sections respectively; and it is understood and agreed that the Railway Administration will not order or purchase materials and goods of foreign origin locally in China except where such orders or purchases are economically advantageous to the railway, and that on all such local purchases of foreign materials and goods the said agents shall receive the stipulated commission of 5 per cent. The Railway Administration reserves the right, while paying the commission to the said agents in respect of all purchases of foreign materials imported from abroad, to avail itself of the services of other agents should it see fit to do so.
Original invoices and inspectors' certificates are to be submitted to the Managing Director; all return commissions and rebates of every description shall be credited to the railway; and all purchases made by the agents on behalf of the railway shall be supported by manufacturers' original invoices and inspectors' certificates.
No commission shall be paid to the agents except as above provided; but it is understood that the Railway Administration shall provide out of railway funds for the remuneration of consulting engineers whenever their services are engaged.
With a view to the encouragement of Chinese industries, preference will be given, at equal prices and qualities, to Chinese materials and manufactured goods. commission will be paid in respect of the purchase of such materials.
No
It is understood and agreed that after the construction of the line is completed the Deutsch-Asiatische Bank and the Chinese Central Railways (Limited), within their respective sections, will be given the preference for such agency business for the supply of foreign materials as the Railway Administration may require, on terms to be hereafter arranged.
[40952]
No. 1,
SECTION 3.
Consul-General Wilkinson to Sir Edward Grey,~(Received December 14.)
(No. 26.)
Yünnan-fu, October 25, 1907. Sir,
WITH reference to my despatch No. 8 of the 19th July, last, 1 bave the honour to inclose copy of a letter which I have addressed to the Government of Burmah, covering copy of the last three monthly Reports by the Construction Company on the progress of the French Railway from Laokai to Yunnan-fu.
I have, &c. (Signed)
Sir,
Inclosure in No. 1.
W. H. WILKINSON.
Consul-General Wilkinson to Government of Burmah,
Yunnan-fu, October 24, 1907. THE railway from Laokai to Yünnan-fu was, as you are aware, conceded by China to the French Government or to such Company as that Government should designate. The Company designated was an Association, or Syndicate, that took the title of the For the "Compagnie Française des Chemins de Fer de l'Indo.Chine et du Yünnan.” actual construction of the line this Company has employed what is known as the "Société de Construction," a firm of railway builders, at the head of which is Count Vitali. Again, since the Government of Indo-China possesses certain interests and liabilities in connection with the line, the Public Works Department of that Colony has the right to keep check of the manner in which the work of construction is carried out. Finally, the Ministry for Foreign Affairs at Paris stations a Delegate at Yünnan-fu to act as intermediary between the representatives of the above three establishments and the Chinese authorities.
Those representatives have their head-quarters at Mengtzu. Once a month a "la Report is prepared by the Construction Company (which describes itself as Société") of the progress of the work, and is sent to the concessionary Company ("la Compagnie Française"), to the Public Works Department ("le Contrôle"), and to the French Consul at Yunnan-fu (“le Délégué”). By the courtesy of this last, M. Arnould, I am enabled to forward to you copy of these Reports for the three months ended the 15th September last.*
The Reports are of value as giving authentic figures for the quantity of earth shifted and stone-work placed in position by the contractors and for the cost of construction up to date. The totals are expressed in cubic metres; for example, the amount of tunnel- ling up to the 15th September last was 356,944 cubic metres. The total expenditure on the same date was 80,618,790 fr., or 3,224,7497.
I
This expenditure is, it would seem, that incurred for the construction of the permanent way, the excavation of tunnels, and the building of viaducts and stations, It does not, apparently, include any ironwork, such as metal bridges or rails; nor does it take count of the salaries of functionaries directly employed by the Government of Indo-China ("le Contrôle ") or by the concessionary Company. It does not even, think, include the pay of all employés of "la Société." The average expenditure per month for the last three months is, as you will observe, 2,434,045 fr. It is now believed that the locomotive will not reach Yünnan-fu for another two and a-half years--that is, before April 1910. If this is so, and we deduet one year for the pose of rails and iron bridges after the completion of the permanent way, there yet remain fifteen months or more of expenditure under section 7 of these Reports. Should the average rate be maintained, this would add some 26,000,000 fr. to the cost, making the total for the What with surveys, salaries, rails, metal roadway alone a little over 4,000,0001.
[2768 0-3]
* Not printed.