This Document is the Property of His Britannic Majesty's Government
CHINA RAILWAYS.
CONFIDENTIAL.
pay, and I asked him to impress upon Yuan Shih-k'ai and the other members of the Chinese Government the necessity of holding to a "firm offer" in financial matters. In my telegram No. 150 of the 12th September I had the honour to inform you of this step, and I also stated that I proposed to await the result of Tong's intervention before replying to the last paragraph of your telegram No. 115 of the 9th September.
I learnt from Mr. Hillier on the 12th September that Tong had returned from the Chinese Summer Palace, where he had spoken to Yuan, who saw no difficulty in the Chinese Government adhering to the 93 offer; but when Mr. Hillier called upon Mr. Liang at the Board of Communications next day he was again met with an obstinate refusal to consider that offer, which was treated as withdrawn, and he was finally made a new offer identical with the 94 proposal which the Banque de l'Indo-Chine had telegraphed to M. Casenave on the 8th September. This new offer was telegraphed to London on the 13th September, and no reply to it has yet been received by Mr. Hillier.
While Mr. Hillier has not in words abandoned his claim to the 93 option, he has felt that he has evidently to contend with a strong pro-Belgian faction, which controls Mr. Liang to a considerable extent, and which is anxious to prevent an Anglo-French loan at any cost, and he has shaped his course accordingly. He is unable to explain how the Yu-ch'nan Pu come to offer terms identical with the Banque de l'Indo-Chine's counter-suggestion, which M. Casenave asserts was not communicated to the Chinese by him, but, that counter-offer being apparently known to them, it appeared to him that, before doing anything further to press the option, Mr. Liang's new proposal should be communicated to his principals.
I have, &c.
(Signed) J. N. JORDAN.
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42997 [November 2.]
SECTION 2.
24 NOV OS
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received November 2.)
(No. 418.) Sir,
Peking, September 15, 1908. WITH reference to my despatch No. 333 of the 21st July, reporting the appointment of Chang Chih-tung as Administrator-General of the Canton-Hankow Railway, I have the honour to inclose copy of a despatch from Mr. Fox, Acting Consul-General at Canton, giving an account of the manner in which this appointment has been viewed in the province and of the official explanation of his duties and powers in that capacity.
The statement of the President of this railway, as to the progress already made, renders it probable that the Kuangtung section of the line will be practically completed before the Hunan section is begun. There is therefore some scope for the energies of the Administrator-General if he chooses to direct his attention towards urging the Hunanese to start construction. Their section in the middle of the line is the longest of the three portions into which this railway has been divided, and, although they have employed a British engineer for over a year, nothing has yet been done beyond surveying.
The Hupei, or northern, section will be begun next month. According to the engineer, Mr. K. St. George Moore, who recently visited Peking, the prospects of completing this section of 148 miles promptly are exceedingly good. Under instructions from his Chinese Directors, Mr. Moore has adhered to the trace of the Japanese engineer Haraguchi for the most part, and land has been bought already for 25 miles. It is intended to complete the first 50 miles of earthwork by April 1909, and it is hoped to complete the section in two and a-half to three years. The country traversed is by no means level, and the line will prove expensive.
Mr. Moore speaks in the highest terms of the Chinese Directors, and appears very sanguine of making the line a thorough success. Strong feeling prevails against the Japanese engineers who were forced on the province by Chang Chih-tung while he was Viceroy at Wuchang, and Mr. Moore has only one left upon his staff, who, it should be said, was trained by Mr. Kinder on the Northern Railways and works satisfactorily.
As a result of a recent visit to Changsha, Mr. Moore has been appointed Consulting Engineer to the Hunan section, in an honorary capacity for the time being, but he has hopes that when the Hupei line is well under way the Hunanese may employ him to start operations for them.
Mr. Moore is unaware of the amount of capital at the disposal of the Hupei Company, but feels satisfied from the manner in which he has been allowed to tender for materials that they have ample for present requirements.
I have, &c.
(Signed) J. N. JORDAN.
Inclosure in No. 1.
Acting Consul-General Fox to Sir J. Jordan.
(No. 38. Confidential.) Sir,
Canton, August 29, 1908. VARIOUS rumours have been current in Canton during the past ten days as to the intentions of the Central Government towards the Canton-Hankow Railway. The appointment of Chang Chih Tung as Director-General has been regarded as an indication that a fresh attempt is being made by the Central Government to obtain control of the line, and it has been freely stated that this step has been taken in consequence of the shareholders' inability to raise sufficient funds to continue the construction of the line. One rumour has it that the aged Grand Councillor is coming south on a tour of inspection; another that he has appointed a Commission, consisting of the Provincial Treasurer and three other officials, to inquire into the affairs of the Railway Company.
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