This Document is the Property of His Britannic Majesty's Government
CHINA RAILWAYS.
CONFIDENTIAL
CO 92
REC [Made] 2 MAY 08
SECTION 2.
[14943]
No. 1.
Sir J. Jordan to Sir Edward Grey.—(Received May 2.)
(No. 118.) Sir,
Peking, March 12, 1908. WITH reference to my despatch No. 114 of the 4th March, and my telegram No. 56 of the 6th March, I now have the honour to inclose printed copies of the Shanghae-Hangchow-Ningpo Railway Agreement, which was signed on the 6th instant. I also have the honour to inclose a translation of Prince Ch'ing's note of the 10th March, notifying me of the Decree by which this Agreement was approved, and a copy of my note of to-day's date acknowledging receipt of this communication.
The conditions under which this railway loan has eventually been secured by the British and Chinese Corporation are as favourable financially as those obtained under the Canton-Kowloon and Tien-tsin-P'ukow Railway Agreements; and the alteration of the route which brings the line to Shanghae instead of Soochow can hardly fail to benefit the traffic receipts of the railway when completed, and to contribute to the development of the port. It may be recalled that this is the route which the Corporation aimed at securing in its original negotiations.
As in the case of the Tien-tsin-Pukow line, the construction and control of the railway are to be entirely vested in the Chinese Government, who, through the Board of Communications and the Chinese Managing Director appointed by the Board, will employ a British Chief Engineer of established reputation to build the line; while it is also stipulated that a British Engineer-in-chief will continue to be employed as long as the loan remains outstanding.
The Chief Engineer is to be under the orders of the Chinese Managing Director, with the qualification that, in case of disagreement of views in matters connected with appointments, or the definition of the functions of technical employés, reference may be made to the Board of Communications.
I mention this apparently innocuous condition on account of an incident which occurred at the Wai-wu Pu on the 6th March, when Mr. Bland presented himself to the Board by appointment, in order to sign the Agreement which had just received Imperial sanction. While comparing the English and Chinese texts for the last time, the Chinese negotiators expressed their wish to delete the condition which thus qualifies the Managing Director's control over the Chief Engineer, and which gives a right of appeal to the Board under certain circumstances, It was apparent to Mr. Bland that such a suggestion could only emanate from the provincial delegates, and the Chinese negotiators—members of the Wai-wu Pu and Board of Communications—put forward this proposal at the last moment, presumably with a view to justify themselves in the eyes of their fellow provincials, since they admitted that its underlying motive was to keep the control in provincial hands and to eliminate the Board as much as possible.
Unreasonable and irregular as their request was, they would not sign the Agreement unless the sentence in Article 17, beginning "whenever....
struck out.
Mr. Bland naturally refused to alter conditions which had been agreed upon and formally approved by Decree, and, fortunately, was able to send me word regarding his difficulty, while I was engaged in another part of the Wai-wu Pu with the Grand Secretary Na Tung.
The point having been explained to his Excellency, he was good enough to order the Chinese negotiators to sign without further argument; and this final difficulty being thus removed, the document was at length signed and sealed.
[2972 b--2]
I have, &c. (Signed) J. N. JORDAN.