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

CHINA RAILWAYS.

CONFIDENTIAL.

[June 29.]

SECTION 3.

[22282]

(No. 216.) Sir,

No. 1.

Sir J. Jordan to Sir Edward Grey.—(Received June 29.)

Peking, May 13, 1908. I HAVE the honour to transmit to you herewith copy of an extract from the Intelligence Report from Canton for the quarter ended the 31st March, 1908, which deals with the progress made in railway construction in that Consular district.

Inclosure in No. 1.

I have, &c.

(Signed)

J. N. JORDAN.

(Extract.)

Intelligence Report for the Quarter ended March 31, 1908.

The Canton-Hankow Railway.

THE line is now open to Tai Kan K'iu, a distance of 24'4 miles. Two trains run daily the whole distance, while a third runs as far as Sun Kai, 19 miles.

The first 80 miles are now under construction. These are divided into eight sections, each under the charge of an engineer, as follows :---

Miles.

Engineer.

Nationality,

Section 1

0 to 9.8

Ts'ai (Chye)

Chinese.

2

9.8 to 19.9

Yamamoto

"

Japanese.

3

19 9 to 31.9

Sherven

"

Norwegian.

4

31

31.9 to 40 0

Sasao..

Japanese.

5

"

40.0 to 50.0

Li

Chinese.

6

"

50-0 to 60·0

Wahr..

Swiss.

7

600 to 70 '0

Bodwell

Canadian.

11

8

11

70·0 to 80·0

Harding

English.

Mr. Carr-Harris, Canadian, is division engineer in charge of the last-named four sections.

The survey of the line from mile 80 to the frontier of the province is now being conducted by a party of four engineers, Burnside, Baby, Macdonald, and Jordan, under the leadership of the first-named, all four being Canadians.

An American mechanical superintendent, named Riley, has further just been engaged, as also two American engineers, named Williams (formerly in the employ of Chang Pi-shih on the Canton-Amoy line) and Goodell. The former is to take Burnside's place at the head of the survey party, while Burnside is to be division engineer of sections 9 to 12. It is stated that the chief engineer, Kwang, is partial to Canadians, but that the new President, Liang Ch'eng, lately Minister to the United States, favours the employment of Americans.

Beyond mile 24'4 most of the earthwork on sections 3 and 4, and even on part of 5, has been completed, and another 2 miles of line will be opened to traffic shortly. Indeed, the principal obstacles to the completion of the line as far as the middle of section 5 are a number of formidable embankments and cuttings at the end of section 3 and the beginning of section 4. It is now proposed to begin the laying of rails from near Kong Hai in section 5 as well, so that when the embankments are finished, in September or October, the line will be ready for opening up to mile 45, close to the North River.

Work has recently been begun on sections 6 and 7. In the latter there are a couple of tunnels, and construction will be more difficult, from the nature of the

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