2

From this revision of tariff, coupled with the scheme for building a fixed bridge over the Yalu River at Antung connecting the railway systems on the Corean and Chinese sides, it becomes increasingly clear that the Japanese intend to leave no stone unturned in their effort to obtain the control of the trade of this region.

I have up to the present heard no further definite news regarding the latter project additional to that contained in my despatch No. 1 of the 4th December, 1907, but that plans for the construction are maturing is evident from the fact that measurements of the water-level are being taken by theodolite along the line of the proposed bridge across the ice to assist in calculations as to the necessary altitude.

The line from Hsin Wiju to Seoul is broad gauge, and the powerful American Baldwin engines are capable of drawing heavy trains of freight trucks; and though at the present time the influx of goods is not great, it is likely to increase under the new tariff.

I have observed lately that considerable quantities of the "Admiral Togo" brand of flour from Seattle, United States of America, are being imported into Antung by the Corean Railway for local consumption.

A copy of this despatch has been sent to His Majesty's Ambassador at Tôkiô.

I have, &c.

(Signed) W. P. M. RUSSELL.

391 C. O.

This Document is the Property of His Britannic Majesty's Government. 14855

CHINA RAILWAYS.

CONFIDENTIAL.

[11547]

(No. 8.)

Sir,

No. 1.

[April 4.]

SECTION 4.

-29 APR 08

Consul-General Wilkinson to Sir Edward Grey.~(Received April 4.)

Yunnan-fu, February 9, 1908. SIR JOHN JORDAN having sent me a copy of his despatch to you No. 9 of the 5th ultimo, on the subject of Franco-Chinese negotiations for the repurchase of the Laokai-Yunnan-fu Railway, I have addressed to him in reply the despatch of which I have the honour to inclose a copy.

I have, &c.

(Signed) W. H. WILKINSON.

Inclosure in No. 1.

(No. 9. Confidential.) Sir,

Consul-General Wilkinson to Sir J. Jordan.

Yunnan-fu, February 6, 1908. I HAVE the honour to acknowledge receipt of your despatch No. 1, Confidential, of the 8th ultimo, inclosing copy of a despatch to His Majesty's Secretary of State on the subject of the Franco-Chinese negotiations for the repurchase of the Laokai-Yunnan-fu Railway.

The conditions demanded by France—previous completion of the line and guarantees for its efficient working by China after purchase—are such as I anticipated in my despatch No. 27 of the 12th July, 1906. The chief obstacle, however, will be the price. It is now fairly certain that the 5 millions sterling of my then estimate will be exceeded. Tonquin newspapers have even declared that the final cost will be found to approximate to 200 million francs; in any case it is most probable that the French Government will hold out, in case of sale, for 200 million francs, the equivalent at present rates of over 7 million taels is not correct, hence remain as 56 million taels.

Some three or four weeks ago the unofficial Directors of the "Yunnan-Szechuan and Tengyueh Railways Company" held a series of meetings, extending over ten days, to consider the possibility of raising funds for repurchase of the line. The "tuan-cheng" (trainband captains) of the neighbouring villages were invited to attend, in order to keep up the farce wherein this handful of literati poses as the "Delegates of all Yünnan." In the event, the Directors were forced to the conclusion that it would be quite impossible to procure the necessary sum.

Meanwhile it had got about that the Governor-General intends to oblige the unhappy Yünnanese to contribute not only towards the building of the Yunnan-Szechuan and Tengyueh lines, but also towards the repurchase of the French railway. One old man came to see me, on the 22nd January, with a sort of Petition to the effect that—

"The gentry and others at a meeting at the Railway Office talked of buying back the French railway, the proposal being to form a joint-stock Company and force folk to subscribe. When the French Bishop heard of it he said that, what with drought and flood, the people's misfortunes have been such that he was surprised that any one could have the heart to make men subscribe. Still, if they insisted, then he was prepared to advance the money for those unable to comply. This was with a view to gain souls. We observe that the spirit of your honourable country (Great Britain) is one of virtue; still to buy back this line would be impossible without your honourable country's strength. The line would be ostensibly repurchased by Yunnan, but privily it would be your honourable country's."

The proposal is ludicrous and without authority, and I need not say that I have paid no attention to it. I quote it here as a straw that shows the direction of the wind of popular feeling in Yunnan.

[2934 d-4]

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