This Document is the Property of His Britannic Majesty's Government.
# CHINA RAILWAYS.
**CONFIDENTIAL.**
[39616]
No. 1.
44174
375
[November 14.] DEC 09)
## SECTION 2.
(No. 431.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received November 14.)
Peking, September 26, 1908.
I HAVE the honour to inclose copy of a despatch from His Majesty's Consul-General at Canton, reporting upon the progress which is being made in the construction of the railway from Canton to the British frontier at Kowloon.
The Engineer-in-chief expects to have the Canton section, some 30 miles in length, opened to traffic in December of next year, and estimates that the whole line will be completed in July 1911.
As I have already had the honour to state in my despatch to the Governor of Hong Kong of the 28th ultimo, which formed an inclosure in my despatch No. 389 to you of the 2nd instant, I am disposed to agree with Mr. Grove that little will be gained by commencing negotiations for a working agreement between the British and Chinese sections until the work of construction is much farther advanced.
I have, &c.
(Signed)
J. N. JORDAN.
## Inclosure in No. 1.
Acting Consul-General Fox to Sir J. Jordan.
(No. 45. Confidential.) Sir,
September 9, 1908. IN continuation of my despatch No. 31, Confidential, of the 25th July last on the affairs of the Chinese section of the Canton-Kowloon Railway, I have the honour to report that Mr. Grove, the Engineer-in-chief, has now completed his estimate of the total cost of the line from Canton to the British frontier.
Mr. Grove is unable to furnish me with a copy of this estimate for your perusal, but suggests that the British and Chinese Corporation, to whom the statement has been forwarded, will doubtless send you a copy if requested to do so.
Mr. Grove has with much difficulty, and at a sacrifice of efficiency to economy in certain matters, succeeded in keeping his estimate within the allotted sum of 1,500,000l, leaving, however, no margin for unforeseen expenditure. For this, as stated in my previous report, the unexpectedly heavy expenditure which is being incurred in the purchase of land is chiefly responsible. Mr. Grove informs me that the purchase of land is now proceeding more satisfactorily, and he hopes by next spring to have secured all the land he requires. Considerable opposition to the railway is being shown in the Sam Chun district, adjoining the British frontier, where the inhabitants of one village have, after an acrimonious dispute with the railway's land officers, succeeded in inducing the Director-General in Peking to sanction a serious deviation in the line.
Mr. Grove estimates that the section between Canton and Hsintang, near Sheklung, some 30 miles long, will be open to traffic in December 1909, and the whole line in July 1911.
The line is divided, for construction purposes, into three sections, each under a District Engineer. The first and third sections present few difficulties; the second section, which is considerably shorter than the others, will require a large amount of bridge work.
Work is now proceeding on all three sections,
Mr. Grove does not consider that any good purpose will be served by commencing negotiations for a working agreement between the Chinese and British sections until portions of the line on both sides have been opened to traffic and traffic departments have been organized.
However, this is only his personal opinion, and he has asked
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