2
had beer signed between the Managing Director and Mr. Foord as Engineer-in-Chief of this railway, and that in their letter of the 14th October, Messrs. Jardine, Matheson, and Co. allege that Mr. Foord's agreement is still unsigned. In reply to a question, the Peking agent ad interim of the Corporation has sent me the inclosed letter upon the discrepancy between these two statements, but his explanation is not quite satisfactory, and I have asked him to make further inquiries.
I have, &c.
(Signed)
J. N. JORDAN.
3
The Chinese appear oblivious to the condition of affairs, and satisfied that they are constructing a first-class railway, so that no representations to the local Railway Companies are likely to have any effect, and, unless the Central Government can be induced to place the Managing Director and Engineer-in-Chief in possession of their proper and respective powers and functions, nothing but chaos can result in connection with the construction and equipment of this railway.
We trust that you will be able, with the kind assistance of Sir John Jordan, to place this matter in such a light before the Chinese Government that steps may be taken to remedy the present position of affairs.
We are, &c. (Signed) JARDINE, MATHESON, AND Co.
Dear Sir,
Inclosure in No. 1.
Messrs, Jurdine, Matheson, and Co. to Mr. Bland.
Shanghae, October 14, 1908. Shanghae-Hangchow-Ningpo Railway.-For the information of the British Minister and your good self we think it advisable to lay before you the present unsatisfactory position of affairs on this railway, where, so far, practically no attempt has been made to proceed with the construction of the line, in accordance with the terms of the Loan Agreement, notwithstanding that the conditions of that document were relaxed to the furthest possible extent to meet the views of the Chinese Government.
Managing Director.-Taotai Shih Chao Tseng ("Sze") has not been accepted at all by the Kiangsu Railway Company, and his appointment is only partially acknowledged by the Chekiang Company, the President of which latter line refuses to accept him "officially" until the Board of Communications has duly confirmed his appointment. It appears evident that, although the Board communicated Sze's appointment to the Corporation as far back as the 7th August, they have neglected to invest him with the necessary authority vis-à-vis the local Railway Companies. Managing Director Taotai Shih Chao Tseng is thus an absolute nonentity under existing conditions.
Engineer-in-Chief.-Mr. Foord's agreement remains unsigned, and that gentleman has been left idle in Shanghae, with the exception of one short trip over the proposed route of the line between Hangchow and Ningpo.
One month's salary has been paid to Mr. Foord by the local office of the railway in Shanghae, but beyond this practically no notice has been taken of him.
The Kiangsu Railway Company has so far refused to have anything to do with Mr. Foord, while the Chekiang Company appears to look upon him more in the light of a consulting engineer (to be consulted when they like), and it is evidently not the Railway Company's intention to allow him to interfere in the construction of the line more than can be avoided,
Meanwhile, the Chekiang Company has an engineer of its own in the person of a nondescript Greek, in whom considerable confidence is reposed, and this individual is further intended to act as a check on Mr. Foord and a counterpoise to the machinations of the Corporation.
Finance. No loan funds have yet been made available to the Board of Communi- cations, or by that Board to the Railway Companies, although the Board undertook (vide Edict of the 15th April) to pay a first instalment of 800,000 taels over to the railway before the 6th instant.
A considerable number of shareholders are still averse to making use of foreign capital, and
propose to leave the proceeds of the loan on deposit, in some bank, and utilize the interest thereon to pay that on the loan, continuing the construction of the railway with Chinese capital,
Construction. The construction of that part of the railway which has already been completed is exceeding bad and elementary. Not only will the greater part of the line have to be relaid, at no distant date, but, in the meantime, traffic thereon can only be attended with great risk owing to instability of the track and the bad material made use of
Rolling Stock. The little rolling stock acquired is of various patterns, and has no competent or responsible official to care for it: the result is obvious.
* Not printed.
28