Encl.
COPY.
in Sir John Jordan's No.380 of the 25 August 1909
J.O.P.Bland, Esquire,
Peking.
Dear Sir,
58
HONGKONG, 30 April 1908...
36191
(OCT 19 1908)
CANTON KOWLOON RAILWAY. Mr.Grove, the Engineer-in-Chief of the above railway, has had considerable discussion and correspondence with the Chinese authorities regarding the proper and just price to be paid for a piece of reclaimed and bunded land at Canton, which has been selected by him and approved by the Viceroy, as the site for the terminus of this line.
According to Mr.Grove, the actual cost to the Chinese of reclaiming this land (which we understand is Government property) could not have exceeded $111,078, whereas the price first demanded was Tls.400,000, a figure, which, owing to Mr.Grove's representations has since been reduced to $280,000. According to Article 7, paragraph 2, of the loan agreement the Viceroy is supposed to acquire land for this railway at actual cost price, and though this is perhaps not possible under conditions prevailing, we think Mr.Grove quite rightly maintains that a profit to the officials concerned of about $169,000 on 51 mow of land is altogether contrary to the letter or spirit of the agreement, and if "squeezes" on land purchases are to continue on this scale, the loan funds will not be sufficient to pay for the completion of the railway.
We enclose for your information copies of correspondence in the above connection, between Mr.Grove and the Managing Director, Mr.Wei Fan, from which you will observe that the price of $280,000 has apparently been sanctioned by the Board of Communications and by the Viceroy, and Mr.Grove having