DOMESTIC.

2

Inclosure in No. 1.

Sir J. W. Barry and Mr. A. J. Barry to British and Chinese Corporation.

Gentlemen,

7, The Sanctuary, Westminster, February 18, 1908.

WITH reference to the suggestion which we understand has been made, viz., that the proposed extension of the Northern Chinese Railway from Hsinminting to Fakumen would be competitive with the Southern Manchurian Railway, we would point out that the proposed railway, being on the west side of the Liao Ho, would serve a district quite distinct from that from which the Southern Manchurian Railway draws any traffic.

The Liao Ho forms an effective barrier against any local traffic finding its way from the country to the west of that river to the Southern Manchurian Railway eastwards of the same.

At the present time all the local produce of the country westwards of the Liao Ho through which the proposed extension would run is carried by cart to Sinminting, and is there placed on the Imperial Chinese Northern Railway.

The construction of the proposed extension could not fail to develop a fertile area badly in need of better transport, whilst it would also link up the important town of Fakumen (which has a population of from 30,000 to 40,000) with the railway system of North China, and by means of the Hsinminting-Mukden loop line, now under construction, with all the trade centres served by the Southern Manchurian Railway.

In our opinion, therefore, whilst the proposed extension could in no sense be regarded as competitive to the Southern Manchurian Railway, it would really act as a feeder to the railway system.

There is another point which should also be borne in mind, viz., that a very heavy bean traffic is brought in native boats down the Liao River to Fakumen from districts further north and west. From Fakumen these boats continue their journey down the river to Newchwang, but none of the traffic carried by them finds its way on to the Southern Manchurian line. Owing to difficulties of navigation below Fakumen there are times when an enormous number of native boats are held up at Fakumen.

If the proposed railway were constructed it is only natural to expect that a very large proportion of this traffic would find its way to the railway there, and that the additional facilities thus offered would prove a stimulus to the industry of the country in which this traffic now originates.

Inasmuch as some proportion of this traffic would find its way eastward from Hsinminting and get on to the Southern Manchurian Railway at Mukden, the fact that the proposed extension would be a feeder to, rather than a competitor with, the latter railway, is, we think, fairly demonstrated.

It is perhaps possible that the fear of competition arose from the idea that it was contemplated to carry the extension on to Tsitsihar. Tsitsihar is more than 300 miles from Fakumen, and we do not suppose that there is any likelihood of such a proposition being seriously put forward. But, even if it were, no competition could arise except in regard to through traffic.

The proposed extension to Fakumen, even if at some future time it were prolonged 200 miles or so north and a very much greater distance west, would only become a still more valuable feeder line to the Southern Manchurian Railway, whilst at the same time it would form a most valuable stimulus to the development of the commerce and industry of Manchuria by affording a much-wanted means of transport to a part of the country where at present practically none exists.

We have, &c. (For the Consulting Engineers),

(Signed) A. J. BARRY.

Office sa Idrickavet.

Foreign

1908

11 Mich.

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