203
A
HAL I
HONRA
BORY 13 40
Magneto 200
14
ald Jewuper 03
DANA BO
No
....
506
Enclosure No. 2 in Mr. Fraser's No. 55 of October 10th, 1908.
Copy.
Translation.
.46489
Rect
&
READ 13 DEC 08
43321
Telegram from the Grand Secretary (CHAPEC 12 1909) to the Viceroy CH'EN K'UN-I-LUNG.
I have received a telegram, dated September 24th, from the Railway Board.
The observations of the leading men of Hupei are most extraordinary, and topsy-turvy notions of their own advantage should not be carried to this extreme. The loan mentioned by the Board of Communications is in any case a foreign loan negotiated by the Board. My own view with regard to this line is that if the funds are to be provided by the Board, the people of Hupei lose the profit on the undertaking; it is for this reason that I have proposed that the province should manage it independently, with the preliminary decision that the shares should in perpetuity be one half official and one half merchant. And I cannot understand the leading men's view that construction, whether by the Board or by Hupei, is alike of no benefit to the leading men and merchants.
The "rent-charge" was brought in to give a preliminary advantage vis-à-vis the Board, with the general idea of pointing out Hupei's ability itself to provide funds for railway work. I maintained that the authorities would find the money in the first place and it would be for the community later gradually to take up shares. The rent-charge, moreover, was first inaugurated in Hunan, whose gentry have always been circumspect, and of late adopted this proposal perforce to keep safe the Hunan line. Our rules would follow theirs. This was indeed only a temporary use of this point, and the future method of providing funds would await leisurely discussion.
If
Page 510
Page 511