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

662

C.O.

CHINA RAILWAYS.

CONFIDENTIAL.

[14948]

No. 1.

[May 2.]

20024

SECTION 4

6 JUN 08

Sir J. Jordan to Sir Edward Grey.—(Received May 2.)

(No. 123.) Sir,

Peking, March 16, 1908. WITH reference to my despatch No. 86 of the 19th ultimo, I have the honour to state that the irregular levy of li-kin on the traffic of the Shanghae-Nanking Railway, and the refusal of the li-kin authorities of Kiangsu to respect the exemption certificates issued by the Imperial Maritime Customs, were brought to the notice of the Wai-wu Pu in an interview on the 10th instant. At the suggestion of Mr. Bland, I had delayed taking this step until the Shanghae-Hangchow-Ningpo Railway Loan Agreement was signed and done with.

The serious nature of the injury inflicted on the railway by the differential treatment complained of was dwelt upon, and the obvious illegality of li-kin charges on goods covered by exemption certificates was pressed as a matter requiring immediate rectification. To show that these difficulties were purely local, the procedure and practice on the northern and Manchurian railways were referred to.

The Vice-President, Lien-fang, who was the only Minister present, took careful note of the complaints, and said that he would consult with their Excellencies Na-t'ung and Yuan Shih-k'ai about them.

To impress the subject more fully on the attention of the Chinese Government, I addressed Prince Ch'ing a note on the 12th instant, showing that the action of the Kiangsu li-kin authorities, which had been under discussion between the Board of Communications and Mr. Bland for some months past, was opposed to the letter and spirit of the Railway Loan Agreement, and was also in fact a serious breach of Treaty obligations. A copy of this note is inclosed for your information.

I propose to take an early opportunity of again pressing the question upon the attention of the Wai-wu Pu and of doing what is possible to have it adjusted in a manner which will facilitate the traffic on the railway and secure to British trade its rights under Treaty.

I have, &c. (Signed) J. N. JORDAN,

Inclosure in No. 1.

Your Highness,

Sir J. Jordan to Prince Ch'ing.

Peking, March 12, 1908. FOR some months past the irregular levy of li-kin on the goods traffic of the Shanghae-Nanking Railway has been the subject of discussion between the Board of Posts and Communications and the representative of the British and Chinese Corporation. Mr. Bland has drawn attention to Article 14 of the Loan Agreement, in which it is laid down as follows:-

"(2.) As to li-kin for goods or passengers which may be transported over the lines from, to, or through the different provinces, the Director-General will confer with the Government Bureau of Mines and Railways and the Board of Revenue, with a view to devising means to protect the traffic of the railway and those who may use the railway for the transport of their goods from illegal impositions and other abuses.

(3.) If the arrangements for the levy of li-kin over other railway lines are found to be more advantageous than that of the railway mentioned in this Agreement, the same advantages shall be extended to and enjoyed by the Shanghae-Nanking Railway, and by those who make use of same."

He has pointed out that the li-kin and other charges levied on cargo handled by the railway are much heavier than those paid on goods borne by water, and also than


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