2
j
5
518
.4
Mr. Moore tells me that Mr. Kao had some difficulty in finding the records of Chang Chih-tung's former negotiations with us and was nearly forced to apply to me for them.
I have, &c. (Signed)
E. H. FRASER.
When the method of raising the loan shall have been settled it will be made the subject of a separate Memorial.
A careful Report.
Inclosure 4 in No. 1.
Chang Chih-tung memorializes the Throne on the importance of Railway Construction in Hunan and Hupei, and the advisability of summoning Officers to Peking to consider arrangements.
(Translation.)
I HAVE the honour to submit, for Your Majesty's consideration, a humble Memorial praying that certain officers be summoned to the capital to settle a loan for the Canton- Hankow Railway, the construction of which through the Provinces of Hunan and Hupei is most important.
Since my appointment as Director-General of the Canton-Hankow Railway all general questions of the provision of funds, the employment of staff, the fostering of profits, and the sweeping away of abuses have devolved upon my shoulders to deal with, and I have to exercise control and make final decisions.
In Hupei the trace of the line is about 500 li long, in Hunan 1,200 or 1,800 li, After the redemption of the Concession of the American China Development Company the Throne authorized the two provinces concerned to collect the funds for construction themselves; but during the two years already elapsed the resources of the merchants have proved inadequate, and up till now there is no definite prospect of their collecting the necessary funds, the result being long delay in starting work. This line is the Great Central Trunk Line from north to south, and its extreme importance to the Adminis- tration, the army, transport, and trade precludes further delay.
When the memorialist, then Viceroy of Hukuang, was redeeming the American Concession the date for redemption was very close and the sum of money was immense. The British Consul-General at Hankow, Mr. Fraser, acting under the instructions of his Government, negotiated a large loan for us at a very low rate of interest from the Governor of the British Colony of Hong-Kong. I then made an agreement with Mr. Fraser to the effect that should it be proposed to raise another loan for the purpose of railway construction in the two provinces the British should be first approached. This promise was reported to the Throne, as is on record.
Afterwards, as the views expressed on raising a loan were very divergent, the consent of the Wai-wu Pu was not obtained, so that no loan has been raised in all this long time. When I was at Wuchang in the summer of last year I discussed with the British Consul- General the general terms of a Loan Agreement. Since being ordered to the capital by Imperial command I scrutinized the conditions of the moment and collated the terms of the Loan Agreement for the Tien-tsin-P'uk'ou line as now settled. In raising a loan the essential points to be considered are that the terms be complete and satisfactory, that our sovereign rights over the railway are safeguarded, and that there should be freedom from abuses. These terms have already been satisfactorily settled with the Wai-wu Pu, so that they can be put into operation.
The British Consul-General has now specially deputed Mr. Bland, the representative I therefore of the British and Chinese Corporation, to Peking to settle terms with me. propose at once to instruct the Hupei Shih-Hung Taotai, Tseng Kuang-jung, who is coming to the capital for an audience, in conjunction with the Hupei Educational Commissioner, Kao Ling-wei, whom I propose to send for from Wuchang, to discuss orally with Mr. Bland the general terms of a Loan Agreement for railway construction in Hupei and Hunan,
Only ten days will probably be necessary for them to come to terms, and the train journey both ways also does not take more than ten days or so.
I have already arrived at an understanding with his Excellency Ch'en Kuei-lung, Viceroy of Hukuang, and his Excelleney Tseng Ch'un-min, Governor of Hunan, and have the honour to present this Memorial and pray for the Imperial sanction to my proposals, on receiving which I will at once telegraph to the Viceroy and Governor to instruct Kao Ling-wei to come to Peking, besides giving the necessary instructions to the Ilupei General Railway Office and the Hunan Railway Company.
Inclosure 5 in No. 1.
Precis of Telegrams between Shanghae Hunanese and Hunan Railway Company.
THE “Universal Gazette" of the 19th December publishes telegrams exchanged between the Hunanese in Shanghae and the Hunan Railway Company on the subject of the reported foreign loan, which the former think most dangerous. They are sure share subscriptions will come in freely if Mr. Bland's tempting is not listened to. The Company replies that there is no option but to raise a loan for both Hupei and Hunan; that the intention is not to pledge the line and to borrow only as money is actually needed, thus saving interest, and gradually to hypothecate the rice and salt rates. His Excellency Chang's telegram declares that the local finances and the railway rights will in no way be prejudiced, and no other embarrassment will result. The only course is to raise as many shares as possible, as each share got reduces the amount to be borrowed. The Company has sent agents everywhere to encourage subscriptions, so that the railway may be speedily completed.
Inclosure 6 in. No. 1.
Sir J. Jordan to Mr. Bland.
My dear Bland,
Peking, December 29, 1908. I THANK you for your letter of the 26th instant transmitting a Memorandum of your interview with Chang Chih-tung and asking for my views with regard to Japanese participation under the Agreement of 1905.
This Agreement stipulates that half the engineers for the Hupei railways shall be Japanese, but does not, as I understand it, give specific advantages to Japanese manu- facturers and contractors. It seems to me, however, to be advisable not to enter into a discussion upon the subject unless and until we are forced to do so, and I should say that, if Mr. Odagiri raises the question of Japanese rights under the 1905 Agree- ment, your best course would be to refer him to his Legation, which can obtain an interpretation of them from us.
(Translation.)
Yours sincerely, (Signed)
Inclosure 7 in No. 1.
55
Extract from the “Gazette of December 28, 1908.
Imperial Decree: scaled by the Prince Regent.
J. N. JORDAN.
Ch'en Kuei-lung (Viceroy at Wuchang) has memorialized representing that the Hupei section of the Hankow-Szechuan Railway must for practical purposes be intimately connected with the Hankow-Canton line, and requesting that a Comptroller General may be appointed to undertake the chief direction of both systems.
In view of the importance of the Hankow-Canton Railway, the special appointment was recently made of Chang Chih-tung to be Comptroller-General, and whereas the Hupei section of the Hankow-Szechuan line is naturally complementary to the former railway, it is right and proper that they should be united in order to bring them to completion at an carly date. Chang Chih-tung is therefore hereby commanded to be also Comptroller-General of the Hupei section of the Hankow-Szechuan Railway, and to consult with the Board of Communications and the Viceroy of the Hu-Kuang Provinces (Viceroy at Wuchang) in urging the officials and gentry interested in the