109
2
The unreasonable delay which has taken place in effecting li-kin arrangements on this railway constitutes a serious breach of Article 14 of the Loan Agreement, and in now requesting that the Customs authorities may be definitely instructed by telegraph to issue these certificates without further procrastination, I must once more notify your Highness that any claims arising out of this denial of a Treaty right will be fully supported and strongly pressed by His Majesty's Government.
I avail, &c.
(Signed) J. N. JORDAN,
This Document is the Property of His Britannic Majesty's Governm Gt.: O.
CHINA RAILWAYS.
CONFIDENTIAL.
*[34143]
(No. 367.) Sir,
No. 1.
39169
[October
SECTION
27 00 08
Sir J. Jordan to Sir Edward Grey.-(Received October 3.)
Peking, August 18, 1908.
I FORWARDED to His Majesty's Consul at Chefoo, for his observations, a copy of the inclosure in your despatch No. 261 of the 4th June respecting the reported negotiations with a German firm of that port for the construction of the Chefoo-Weihsien Railway, and have now the honour to inclose copy of Mr. Mortimore's reply, from which it will be seen that, although the German firms in Chefoo have, it is alleged, combined to secure the contract for the construction of this line, it is nevertheless doubtful whether they have been able to submit any proposal offering such advantages as would be obtained by the adoption of a scheme put forward by a British firm, Messrs. Cornabé, Eckford, and Co.
I have, &c,
(Signed)
J. N. JORDAN.
Inclosure in No. 1.
(No. 9.) Sir,
Consul Mortimore to Sir J. Jordan.
Chefoo, August 13, 1908.
I HAVE the honour to acknowledge the receipt of your despatch No. 5 of the 27th ultimo, forwarding copy of a despatch from His Majesty's Ambassador at Berlin on the subject of the proposed railway from Chefoo to Weihsien for my observations thereon.
In reply, I have the honour to report that at present railway matters here are at a standstill, and nothing has been settled so far. The Compradores of most of the larger firms here have become Directors in the railway by subscribing 20,000 dollars to the funds, and they are naturally using what influence they have on behalf of their respective firms. It is reported that the German firms in Chefoo have combined in this matter, but a British firm, Messrs. Cornabé, Eckford, and Co. have been in constant communication with the leading Chinese merchants on the subject, and have given me the following report on how the question stands at present:
"A British firm in Chefoo of forty years' standing has been in constant communication with the Chinese during the past four years regarding the construction of the railway between Chefoo and Weihsien, and, on behalf of influential friends, have put forward a scheme which is to the following effect: that they (the railway contractors) will undertake the survey of the contemplated railway in conjunction with a Chinese engineer, who is to be appointed by the Chinese promoters.
After having made the survey they will consult with the Chinese engineer about the construction of the railway, and will give exact specification of the materials that will be supplied, the cost of the entire construction, and the time within which the railway will be completed. The railway is to be built in sections. After each section has been completed and ready for use it will be handed over to the Chinese, and payment has then to be made. Should the Chinese be unable to pay the total cost of each section payment in instalments could be arranged, suitable security being provided by the Chinese.
"A scheme on the above lines contains at least these advantages: (1) Chinese co-operation in the survey; (2) the finishing of and the payment of one section at a time insures that section being in use and earning money before the rest is completed. In this way dividends should be forthcoming very early in the history of the Railway Company.
The Chinese recognize these advantages, and have generally approved of the scheme as set forth above. Negotiations, however, have had a severe set-back due to the action of the farmers in the interior, but in order not to abandon the idea of the
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