This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[25711]
No. 1.
Foreign Office to Colonial Office.
[August 5.]
SECTION 1.
(Confidential.) Sir,
Foreign Office, August 5, 1908.
I AM directed by Secretary Sir Edward Grey to acknowledge the receipt of your Confidential letter of the 23rd ultimo, inclosing a copy of a despatch from the Governor of Hong Kong with regard to the Canton-Hankow Railway, commenting on the subject of the inclusion of the French group in the negotiations for this Concession.
Sir F. Lugard alludes, in paragraph 5 of his despatch, particularly to four points under the headings of (a), (b), (c), and (d). With respect to these points I am to offer the following observations:-
(a.) As regards the deadlock which his Excellency complains has been produced, it is barely possible, according to all previous experience, to avoid so-called "deadlocks" from time to time in all Chinese railway negotiations, but in this case the fault was in no way due to the French group. In this connection I am to refer you to the letter from this Department of the 29th ultimo. Moreover, Sir M. Nathan's expectation that the Canton-Hankow line would be completed simultaneously with the Canton-Kowloon line (one-sixth the length) would appear to have been an unduly hopeful estimate.
(b.) As regards the claims for French control in the line, the French group are willing, as is shown in the Agreement with the British group, that the Canton-Hankow line should be controlled by the British group, if the Peking-Hankow line is left to them (see Confidential print, "China Railways"(6670), February 25, section 2, inclosure 7, first paragraph). At the present moment, however, the Chinese Government appear more inclined to raise a general loan than a loan for the purpose of any railway specifically.
(c.) As regards French demands for British support for a line from Canton to Indo-China, and for the extension of the Yunnan line to Szechuan, these proposals have been dropped—see Sir E. Grey's despatch to His Majesty's Ambassador at Paris, No. 151 of the 8th April last (Confidential print, “China Railways”(11106), April 8, section 1), describing the arrangements come to between the British and French groups.
(d.) As regards British association with the French in China, Sir E. Grey would observe that China cannot be ruled out of the sphere of the entente with France, and he would point out that, although French co-operation may not altogether be considered to be of material assistance to Great Britain in China, French obstruction, which is the alternative, has in times past proved very effective in preventing this country from getting through Concessions for railways and loans.
I am, &c. (Signed) W. LANGLEY.
[1897-1]
319