This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[6157]
(No. 21.) Sir,
No. 1.
C.O.
159
[February 22 0573
TREC SECTION 25 MAP 08
Sir J. Jordan to Sir Edward Grey.-(Received February 22.)
Peking, January 9, 1908.
THE Chekiang Railway question has continued to engross attention since my despatch No. 594 of the 24th December was written.
On the 27th December Mr. E. G. Hillier, the local agent of the Hong Kong and Shanghae Bank, informed me of news received from his Shanghae house to the effect that the bank Compradore has been warned by the Chairman of the Chinese Chamber of Commerce that a boycott would be instituted against the bank and Messrs. Jardine, Matheson, and Co., unless the Chekiang gentry got their way in the matter of this loan. The suggestion of a threat to boycott was further alleged to have emanated from persons in Peking, and to have been telegraphed down to Shanghae for consideration there.
I received a similar report the following morning from His Majesty's Consul-General, and at once made written representations to the Wai-wu Pu in the letter, copy of which I have the honour to inclose*. In attributing the inspiration of this threat to official sources in the capital, I had in mind Sheng Hsuan Huai, whose interest lies entirely in wrecking the loan negotiations.
In a further note to Prince Ch'ing on the 31st December, I was able to give the name of the person who had delivered the threat at Shanghae, who turned out to be the Director of Telegraphs, a former subordinate of Sheng Hsuan Huai. In answering my strictures against the attitude of the governing classes in this crisis, the Prince repudiated the suggestion in the note of the 3rd instant, translation of which is inclosed.*
As nothing more has been heard of the suggested boycott, I have not pursued the matter further for the present, having discussed this aspect of the case at considerable length in my interview with the Vice-Presidents of the Wai-wu Pu on the 31st December.
At this interview I asked Liang Ta-jên what progress had been made with the provincial Delegates. He replied that they were now in a more reasonable frame of mind, but still wanted to keep the Chekiang Railway to themselves. They had proposed to Mr. Bland that the loan should be devoted to the redemption of the Luhan Railway. Another suggestion was that it should be reduced in amount; another that it should be subscribed for in toto by Chinese and the Agreement then be cancelled.
I had heard all this from Mr. Bland, and told Mr. Liang that it was a mere waste of time for the Delegates to bring forward these alternative proposals. The draft Loan Agreement was considered just and reasonable by the Wai-wu Pu, and I meant to hold them to it.
Mr. Lien Fang then proposed that I could at least reconsider my decision regarding the signature of the Tien-tsin Yang-tsze Agreement. If this were signed and published a good effect would be produced. But they could not give me the assurance I asked for, namely, that the Chekiang Agreement would be signed on the same terms within any given time. They fully understood my reasons for wanting such an assurance, and would again put the matter before Prince Ching, on the understanding that a definite answer should be given me in a week's time.
I had little confidence that the Prince would commit himself without further pressure, but felt, as I had the honour to report in my telegram No. 1 of the 2nd January, that the signature of the Tien-tsin-Yang-tsze Agreement could not be withheld much longer.
On that day (2nd January) I learnt privately from Liang Ta-jên that the Prince interview was still inactive, and that nothing was being done in preparation for my interview on the 7th January.
I accordingly addressed his Highness a semi-official letter, copy of which is inclosed*, urging that no more time should be lost, and that a date should be fixed for signature.
* Not printed.
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