[This Document is the Property of His Britannic Majesty's Government.] 737
CHINA RAILWAYS.
CONFIDENTIAL.
[9289]
C.0. 11287
March 10.]
RECO
SECTION 3.
REGP 1 APR OC
No. 1.
Sir,
Chinese Central Railways to Foreign Office.—(Received March 10.)
110, Cannon Street, London, March 9, 1909. IN reference to my letter of the 3rd ultimo on the subject of the Pukow-Sinyang Railway and your reply of the 6th idean stating that, in the opinion of Secretary Sir Edward Grey, the present was not an opportune time to press this matter in view of the negotiations going on for the Canton-Hankow line, I am instructed to say that my Directors have just learned that the Chinese Government have accepted an offer from the Deutsch-Asiatische Bank to raise a loan for the construction of that line, and they consequently infer that the British negotiations are at an end.
Under these circumstances my Directors would respectfully urge that a favourable moment has now arrived to press for the fulfilment of the obligations entered into by the Chinese Government under the Preliminary Agreement of the 28th December, 1898.
My Directors further wish to say that, subject to the approval of Secretary Sir Edward Grey, they propose, in view of recent events, to stand strictly on the terms of the Preliminary Agreement, that is to say, they propose to ask identical terms to those conceded by the Shanghae-Nauking final contract. The precedent set by the final contracts for the Tien-tsin-Pukow line and for the Shanghae-Hangchow--Ningpo line is being shown by experience to be working badly, and is likely to lead to the misapplication of British funds subscribed for a definite object, and to general waste and extravagance. It need not be pointed out that it is in the best interest of China herself, as well as to safeguard the British bondholders, that no opportunity should be given in future for such waste and mismanagement.
Fortunately, perhaps, the Pukow-Sinyang Preliminary Agreement stands unmodified and unaffected by recent Concessions on other lines, and my Directors would earnestly ask the support of Secretary Sir Edward Grey in pressing for the conclusion of a Final Agreement on the terms originally contemplated.
I have, &c. (Signed) THO. GILBERT, Secretory.
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