2
investors are warned that they must take the word of the Board of Communications as to the amount of the annual net earnings, and that they will have no right to examine or inquire into the accounts.
That the Chiao T'ung Bank is not confident of the loau's success amongst Chinese is shown by the fact that they have already asked the Hong Kong and Shanghae Bank. to underwrite part of it.
I have, &c.
(Signed)
J. N. JORDAN.
26
This Document is the Property of His Britannic Majesty's Government.]
C.O.
1188
CHINA RAILWAYS.
CONFIDENTIAL.
[December 12.]
SECTION 3.1
TI JAN 09
[43320]
(No. 473.) Sir,
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received December 12.)
Peking, October 24, 1908. YOUR telegram No. 116 of the 14th ultimo authorized me to place before the Chinese Government our proposals for the construction of a railway from the Burmah frontier to Tengyuch on the basis of the terms accepted by China for the Tien-tsin-Pukow line, and to endeavour to obtain their acceptance in principle before proceeding to the negotiation of a loan for the purpose.
Your instructions reached me at a time when the negotiations for the Railway Redemption Loan of 5,000,000l. were in a critical state, and I decided to wait until they were concluded before approaching the Wai-wu Pu on the subject.
Accordingly, on the 16th instant, I brought the question to the notice of the Ministers, and had an opportunity of discussing it with the Grand Secretary, Na-t'ung. I reminded his Excellency of the engagement of 1902 and of the recent negotiations based upon that undertaking, all of which we regarded as binding upon the Chinese Government. We had no intention of abandoning that position or of modifying in principle the claims we had maintained since 1902, but we were willing to leave their discussion in temporary abeyance in the hope of finding some practical solution of the question of railway connection between Burmah and China.
The scheme we put forward as an initial measure was a very modest one, and would entail no great strain upon Chinese finances. The country between Bhamo and Tengyueh had, as the Wai-wu Pu were aware, been carefully surveyed by engineers of the Indian Government, and it was found that a light railway, with a 2-ft. 6-in. gauge, connecting the two places could be constructed for a sum of about 850,000l. The portion lying within British territory would cost about a third of this amount, and the Chinese section between 500,0007. and 600,0007.
The Indian Government were now prepared to extend their railway from Bhamo to the Chinese frontier, but before doing so they naturally wished to have some guarantee that it was to meet a well-constructed and properly managed Chinese line. The suggestion was that the Chinese Government should do their part of the work under some arrangement similar to that which had been adopted in the case of the Tien-tsin-Pukow line.
The Grand Secretary, after expressing his appreciation of the spirit in which the question had been revived, observed that the original project had been of a much more comprehensive nature, Talifu or Yunnan-fu having been the objective of the line.
I explained that the Tengyueh section would be the natural beginning of railway construction on the Burmah-Yunnan frontier, and that the prolongation of the line would doubtless follow, but that at present we were merely asking China to commit herself to a scheme which was well within her means, and would, so far as could be ascertained, yield a moderate return upon the outlay from the outset.
་
The Grand Secretary said he would consult with Yuan Shih-k'ai, and let me know what they both thought of the project. The only point that occurred to himself at the moment without reading up the papers was whether the time was ripe for carrying out the scheme. The Yunnanese had offered active opposition to last year's survey, and he doubted if they were prepared to see a railway constructed in the province under foreign auspices.
As regards the doubt about the time being ripe, I pointed out that the Agreement of 1897 provided for the connection of Burinah and Yünuan by railway, and that the development of frontier trade which had since taken place fully justified both countries in giving effect to that engagement.
The temper of the Yünnanese had, if my information was correct, been seriously misrepresented, so far at least as the inhabitants of the Tengyueh district were concerned. They had shown no hostility whatever to the surveying operations, and had in various ways given indications that they would welcome the advent of the railway.
[2065 m-3]