This Document is the Property of His Britannic Majesty's Government.
107
39169
CHINA RAILWAYS.
CONFIDENTIAL.
[34141]
No. 1.
REC
!
1. 27 OCT 08
[October 3.]
SECTION 1.
Sir J. Jordan to Sir Edward Grey.-(Received October 3.)
(No. 364.) Sir,
Peking, August 17, 1908. IN continuation of my despatch No. 332 of the 21st ultimo regarding the Pukou Sinyang Railway, I have the honour to report that, in a conversation with the Grand Secretary, Na Tung, and Mr. Liang Tung Yen at the Wai-wu Pu on the 11th instant, I inquired what course the Chinese Government proposed to adopt in order to discharge the Preliminary Agreement affecting this line, and was informed that, in the opinion of the Ministers present, there would be a long delay before anything could be done. Till the Tien-tsin-Pukou line was finished, it was difficult to consider this connecting link between the two northern trunk lines. They could not speak authoritatively on the subject, as no decision had been come to, but they were not sanguine that this line would be constructed at an early date.
I reminded their Excellencies that any reasonable modification of the original scheme would be acceptable to the Chinese Central Railways, Limited, and expressed my disappointment at finding within the past few weeks a growing tendency on the part of the Chinese Government to remain at a standstill in questions of railway development. Foreign capital was at their disposal on extremely favourable terms, but they appeared unwilling to borrow except on conditions which precluded all possibility of doing business with them. They were doubtless familiar with the proposals made by Mr. Hillier for the Luhan Railway Redemption Loan.
Their Excellencies professed ignorance of these proposals. They could not agree that railway development was at a standstill, as several lines were in course of con- struction. The redemption of the Luban Railway was in the hands of the Board of Communications, and they did not know how the matter stood. All they knew was that the Belgians were also desirous of undertaking further construction work towards the west. This remark obviously referred to the Hsi-An-fu Railway, and I observed that the example afforded by the Luhan Railway should be sufficient to deter China from any further railway construction by Belgians. We had digressed from the subject of the Pukou-Sinyang line, which I should have to press on their attention at a subsequent meeting.
I have, &c. (Signed) J. N. JORDAN.
[1983 c-1}