This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[8630]
No. 1.
[March 13.]
SECTION 1.
Sir J. Jordan to Sir Edward Grey.-(Received March 13.)
(No. 86.)
Peking, February 19, 1908. Sir,
WITH reference to my despatch No. 52 of the 30th January on the subject of the levy of li-kin on goods carried by the Shanghae-Nanking Railway, I have the honour to inclose copy of further correspondence between Mr. Bland and the Board of Communications, in the course of which the former strongly urges that effective steps should be taken to place the railway on at least an equal footing with river transport in this respect, while the Board of Communications, after five months of protest on this question, is only able to assure him that steps are being taken and that there is no ground for anxiety.
That there is need for action is shown by the instances of discriminatory treatment quoted in Mr. Bland's letter of the 18th February, copy of which forms Inclosure 3, and which describes in detail the principles at stake.
I have told Mr. Bland that I am prepared to give him my full support in securing that exemption certificates are recognized by the railway authorities, and have approved his suggestion that in view of the important bearing which the whole question has upon foreign trade, it should be brought to the notice of the Shanghae Chamber of Commerce. The British and Chinese Corporation are mainly interested as trustees for the profit-certificate holders, but that is an interest which the Chinese Government might conceivably redeem at any time. The interests of British trade are of a much wider nature, and it will give them greater weight if the representations on the subject emanate from the Chamber of Commerce. The reform of the li-kin system of China is a task which can only be gradually effected at best, but it would be a pity if advantage were not taken of the opportunity afforded by the introduction of railways to lighten, if possible, the burdens upon foreign trade.
I have, &c. (Signed)
J. N. JORDAN.
Inclosure 1 in No. 1.
Sir,
Mr. Bland to Liang Shih-yi.
British and Chinese Corporation, Peking. February 4, 1908.
IN continuation of my letter of the 18th December on the subject of the improper levy of li-kin taxation on the Shanghae-Nanking Railway, I have the honour to state that I am now in receipt of the following urgent communication from the Corporation's Agents at Shanghae
"Referring to our letter of the 12th October last, we shall be glad to hear what progress has been made in connection with the li-kin question, as, until such time as the railway is placed in this respect on at least an equal footing with the waterways we fear that there is little hope of the railway being able to secure any extensive share of the ordinary goods traffic, which under existing circumstances is naturally still retained by the boats. The matter is one of extreme urgency as far as the railway earnings are concerned, and we trust that the authorities will not delay much longer in arranging a modification of the present state of affairs."
As stated in my letter of the 18th December, continuance of the existing condition of affairs involves a serious breach of the Shanghae-Nanking Railway Loan Agreement, and I trust therefore that your Excellency may be in a position to inform me that steps are being taken effectively to deal with this question.
The Corporation, in pursuance of its duty as trustee for the profit-certificate holders, is compelled to request that the necessary remedial measures be no longer...
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