23

[This Document is the Property of His Britannic Majesty's Government.. 0.

CHINA RAILWAYS.

CONFIDENTIAL.

[40915]

No. 1.

1188

[November 28.}

BIT JAN 09 SECTION 2.

(No. 485.) Sir,

Sir J. Jordan to Sir Edward Grey-(Received November 23.)

Peking, October 27, 1908. I HAVE the honour to report that certain negotiations, which have been proceeding for some months between representatives of the British and German communities in Tien-tsin, with regard to the provision of a station for the foreign Concessions in connection with the Pukow-Tien-tsin Railway, have resulted in an agreement as to the basis upon which the Chinese authorities shall be asked to provide such a station.

The British Concession is still the most important Concession in Tien-tsin, and British trade interests are considerably larger than those of any other Power. On the other hand, the Germans were intrusted with the construction of the northern section of the Tien-tsin-Pukow Railway, and were naturally desirous that the station should be located either in their Concession or in a position which would contribute to its commercial development. In these circumstances, the German Minister and I agreed, as mentioned in my despatch No. 273 of the 12th June, to leave the determination of the question to our respective Consuls, acting in consultation with the British and German communities at the port.

I accordingly instructed His Majesty's Consul-General at Tien-tsin to enter into negotiations with his German colleague with a view to arriving at a common understanding, and Dr. Daumiller received similar instructions from the German Minister.

A glance at the sketch map, copy of which is inclosed herewith,* will show that a branch line running from the main line eastward along the boundary between the British and German Concessions and terminating in a station on the bund upon territory between the north of the German and the south of the British Concessions would best have served the interests of both parties. But the German community were unable to agree to this project, ostensibly because the line would have cut their Concession off from the rest of the town, but largely also because they had heard that the Chinese contemplated running the branch line to a point south of their Concession, which would have suited them admirably, but would have been manifestly contrary to the interests of the British community.

A Committee consisting of three leading members of each community was appointed to come to an understanding, and after much discussion of various proposals and counter-proposals, into which it would be unprofitable to enter, an agreement was finally reached which constitutes a compromise of the two standpoints, and of which I have felt able to signify my approval. This Agreement, contained in the two Memoranda copies of which are inclosed herewith, stipulates that a Settlements station shall be constructed near the so-called West Village, and that a landing station shall be erected in the British southern extension, that is, on the bund between the German and British Settlements. The line to connect these two stations shall, at the option of the German Consul, run either straight west across the Taku and Victoria roads or round by the south of the German Concession, and then due north through that Settlement. The Germans have thus secured a line through their Settlement, which will manifestly facilitate unloading and attract trade to their Concession, while the British have also gained their point as to the site of the landing station.

Such is the scheme in its rough outline. It has also been agreed that, should the Chinese authorities refuse to bear the cost of the work, all expenses incurred in financing the scheme shall be borne by the parties concerned, the British paying three-fifths and the Germans two-fifths. This again is a compromise of the original proposals, which were, on the British side, that cach nationality should pay half, and, on the German side, that each should defray the cost of the work on its own Concession-this latter proposal would have thrown four-fifths of the financial burden upon the shoulders of the British community. A similar division is to be made of the revenue from wharfage and bund dues.

* Not printed.

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