(This Document is the Property of His Britannic Majesty's Government.)
# CHINA RAILWAYS.
## CONFIDENTIAL.
[36322]
No. 1.
[October 19.]
### SECTION 1.
Acting Consul-General Wilton to Sir Edward Grey.-(Received October 19.)
(No. 27. Confidential.) Sir,
Yunnan-fu, August 31, 1908. REFERRING to my No. 24 of the 13th ultimo, I have the honour to forward herewith copy of my despatch to His Majesty's Minister, No. 35, Confidential, of to-day's date, on the subject of the Laokay-Yunnan-fu Railway.
I have, &c. (Signed) E. C. WILTON.
### Inclosure in No. 1.
Acting Consul-General Wilton to Sir J. Jordan,
(No. 35. Confidential.) Sir,
Yunnan-fu, August 31, 1908. I HAVE the honour to report further on the position of affairs relative to the Laokay-Yünnan-fu Railway.
As the result of the numerous landslips mentioned in my despatch No. 29, Confidential, of the 13th ultimo, trains during that month were stopped short at kilom. 6, traffic being subsequently renewed to kilom. 71, La Ha-ti. It should now be possible for construction trains to get as far as the breakdown at kilom. 94. My French colleague informed me recently that he expected Mengtzu would be reached in January next and Yunnan-fu towards the end of 1910 or early in 1911. Li Liang, the Governor-General, during the course of an interview to-day, laid emphasis on the faulty construction of the line from Hok'ou towards Mengtzu. The Provincial Judge, who has recently travelled over the line, put the earliest date of its arrival here at three years hence. I refrained from comment, although an expression of my opinion was sought. It would appear that the concessionary and construction Companies are both children of the same financial group, and this will doubtless facilitate the attainment of a modus operandi for purposes of continued construction.
As regards the damage and loss to the line resulting from the revolutionary movement, matters at present are, I hear from a trustworthy source, as follows: The Indo-China Government is responsible to the Railway, and it is upon the former that the onus rests to secure from the Chinese Government due payment of the claims preferred. The Commission to investigate this question was composed as stated in my despatch No. 29, except that M. Langrogue, assisted by M. Dufour, represented the Railway Company. M. Véroudart presided. The sums claimed by the Society and the "entrepreneurs" are respectively 2,720,000 fr. and 550,000 fr. Those offered by M. Métour, of the "Travaux Publiques" and representative of the Indo-China Government, are 60,000 fr. to the Society and 40,000 fr. to the "entrepreneurs." What M. Véroudart's opinion is I have not been able to ascertain, but I understand that the whole question will be settled in Paris.
On one point there can be no doubt, namely, that, as previously anticipated, both the Society and the "entrepreneurs" are endeavouring to make capital out of the unfortunate trouble which originated with the capture of Hok'ou.
I have, &c. (Signed) E. C. WILTON.
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