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

CHINA RAILWAYS.

CONFIDENTIAL.

[16759]

(No. 101.)

No. 1.

|RECS

R 4 AUG 08

[May 15.]

SECTION 1.

Sir J. Jordan to Sir Edward Grey.~(Received May 15.)

(Telegraphic.) P.

HSINMINTUN-FAKUMEN Railway.

Peking, May 15, 1908.

I fear that the "Times" correspondent's telegram, of which you informed me in your telegram No. 81 of the 13th instant, is unduly optimistic.

The facts are as follows:-

In reply to the Japanese Government's protest, a note, of which I am told the substance was communicated to you, was sent to the Japanese Minister by the Wai-wu Pu on the 6th instant.

Five days later, Baron Hayashi stated to the Board that his Government would not raise any objection to a branch line connecting Fakumen with the South Manchurian Railway. I would refer you, in this connection, to the telegram No. 31 from His Majesty's Ambassador at Tokió.

As regards the proposed arrangement, which I reported to you in my telegram No. 86 of the 25th instant, Baron Hayashi expressed to me his personal views in its favour. The Chinese Government, however, judging from present indications, would not accept any arrangement binding them to make Fakumen the extreme northerly terminus of the railway line.

Baron Hayashi will be able to discuss the matter personally with his Government, as he left Peking to-day and will not return to China.

[2972 p-1]

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