2
of employment and finance, these duties being as before performed by the Directors. The Board has now to request the Viceroy to issue a Proclamation to the shareholders not to let slip this prospect of bringing the construction to a speedy end. must be ready with their capital and not be led astray by random talk.
They
The Viceroy accordingly issues this Proclamation to notify the shareholders that the Yueh Han Railway will closen the bond between the three provinces, and be the connecting link between north and south. Since Hunan and Hupeh have not been able to make the same rate of progress the Government has appointed a Director-General to supervise the whole railway and press on the completion of the line in Hunan and Hupeh. The Kuangtang section, which has long been under commercial control, has already a success to show, and the object of the present scheme is to protect and second its efforts with a view to expediting the completion of the work. There is no intention of encroaching on the rights and privileges of the shareholders. The latter must therefore be prepared to pay up the calls on their shares with alacrity, and not listen to idle rumours or delude themselves with groundless suspicions.
Let there be no disobedience!
686
[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL,
[41500]
Sir,
No. 1.
[November 28.]
SECTION 2.
C.0
47047
A.
REC Rent 23 DEC 08
Sir J. Jordan to Sir Edward Grey-(Received November 28.)
(No. 457. Confidential.)
Peking, October 14, 1908.- WHILE the redemption loan for the Peking-Hankow Railway was under negotiation, I was given to understand by M. Casenave that he had been invited indirectly by the Viceroy Ch'en Kuei-lung to go to Hankow to discuss a railway loan. The engagements entered into by the Chinese Government with us in regard to both the Hankow-Canton and Hankow-Szechuan railways appeared to me to make it desirable that, if the overtures referred to either of these lines, negotiations should not be commenced in the absence of a representative of the British financial group; and I saw the less reason for precipitation on the part of the Viceroy inasmuch as a new loan of magnitude could not be thought of for some months after the Peking-Hankow redemption issue, and M. Casenave was aware that Mr. Bland was expected to reach Peking from London about the beginning of November.
From inquiries instituted at Hankow, the results of which are stated in Mr. Fraser's despatch No. 59 of the 2nd instant, inclosed herewith,* it seemed that the Viceroy was not in a position to consider a foreign loan for either railway. I was also informed by Mr. Fraser that the Grand Secretary, Chang Chih-tung had practically stopped all work on the Hupei section of the Canton-Hankow railway, and was urging a concentration of effort on the Hankow-Szechuan line, for reasons which were not clearly understood. The Hupei railway authorities, after vain remonstrance, were constrained to withdraw public notifications for tenders which they had issued, and the plans and preparations of Mr. St. George Moore were disorganized.
However, the terms of the Peking-Hankow redemption loan were hardly settled when the Grand Secretary telegraphed on the 4th instant to Mr. Fraser, in a private and secret code, that he was willing to borrow from the British and Chinese Corporation or the Hong Kong and Shanghae Bank for railways in Hupei and Hunan, and desired to negotiate the details with a trustworthy agent in Peking. I instructed Mr. Fraser to reply, thanking his Excellency for his telegram, expressing my satisfaction that there was at length some indication of the engagements of 1905 be brought into effect to the mutual advantage of the two contracting parties, and assuring him that effort would be made to meet his wishes. I added that the agent of the British and Chinese Corporation would return shortly to Peking, and would be prepared to enter into negotiations with his Excellency for the conclusion of a loan. Mr. Fraser's despatch No. 62 of the 7th instant, copy of which is inclosed,* contains the text of the communications with Chang in full.
Before my reply, dispatched on the 6th instant, could reach his Excellency, he again telegraphed to Mr. Fraser expressing surprise at the delay, and requesting a categorical reply, on the ground that the railway works were pressing and could not be postponed, but soon afterwards he got into communication with Mr. Hillier, in Peking, through his Excellency Liang Tun-yen, Vice-President of the Wai-wu Pu, and was assured that the matter could not be hastened, and there could be no question of a further issue for some months after the new £5,070,000 loan was placed. To keep touch with his Excellency and to humour him, it was arranged that he should send his confidential agents to discuss the subject with Mr. Hillier. These officers called at the Hong Kong and Shanghae Bank on the 12th instant, and were advised to restrain the Grand Secretary's impatience and impress upon him that his best course was to await the return of Mr. Bland, who would soon be on his way from London viâ Siberia.
I am sending a copy of this despatch to his Excellency the Governor of Hong Kong.
I have, &c.
(Signed)
J. N. JORDAN.
→ Not printed.
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