490
33035
This Document is the Property of His Britannic Majesty's Government
CHINA RAILWAYS.
CONFIDENTIAL,
[29333]
No. 1.
RECP
9 SEP 08
[August 24.]
SECTION 2.
(No. 303.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received August 24.)
Peking, July 7, 1908. WITH reference to my despatch No. 281 of the 23rd ultimo, I have the honour to transmit to you herewith copy of a despatch from the Acting Consul-General at Canton, reporting a conversation with the President of the Canton-Hankow Railway, and containing much information respecting that undertaking,
I have, &c.
(Signed) J. N. JORDAN.
Inclosure in No. 1.
Acting Consul-General Fox to Sir J. Jordan.
(No. 24.) Sir,
Canton, June 19, 1908. IN the course of a recent interview with Sir Chentung Liang Cheng, K.C.M.G., President of the Canton-Hankow Railway, that gentleman was good enough to furnish me with the following information regarding the Company's affairs:
At a general meeting of shareholders held in Canton on the 13th June, it was definitely decided to make a call of 1 dol. 50 c. on every 5-dollar share, that is to say, 1 dollar, or 20 per cent., having already been paid up, a further 30 per cent., making in all 50 per cent. of the value of the share, is now to be collected. The first call brought in nominally 8,000,000 dollars; the present one, which is to be made on the 1st of the 7th moon (the 28th July), is expected to realize 12,000,000 dollars.
The collection of this money has again been placed in the hands of the nine "Shan Tang," or benevolent institutions, of Canton; and Sir Chentung said he was hopeful that they would be able to realize at least 75 per cent. of the total amount due. It was further decided at the meeting above mentioned to pay 6 per cent. interest for two years on the paid-up value of the shares, and to allow shareholders to deduct the interest from the amount payable on the second call.
According to present calculations the Company will, when this call is paid, have sufficient funds to complete the Kuangtung section of the line,
The Company, said Sir Chentung, have refused to agree to the Chinese Government's proposal that their capital should be deposited in the newly-formed Ta Ch'ing Bank, as it is already distributed among a number of Chinese and foreign banks of established reputation.
Trains are now running as far as Kuan Tien, 26 miles from Canton, and the road has been laid for a distance of nearly 80 miles. If nothing unforeseen occurs, the President said he hoped the line would be open to traffic as far as Pak Shek Yao, about 10 miles above Ying Tat, by the end of this year.
Some difficulty is being experienced in acquiring the necessary land, but the local officials and gentry are rendering valuable assistance, and the President does not anticipate any serious hindrance under this head.
Tunnelling work is at present delayed owing to lack of explosives, the new and cumbersome Regulations necessitating a separate application to the Board of War in the case of every consignment.
Rails, said the President, are being purchased in Japan, Germany, England, and Belgium. Two consignments, one of 3,000 tons, the other of 4,000 tons, are now being imported through the Mitsui Bussan Kaisha and Arnhold Karberg and Co. respectively. He mentioned that the Han Yang Ironworks were unable to execute any orders for another six months, otherwise all the rails required would have been purchased there.
Page 1