This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[10420]
12195
[March 15.1
RECO REG APR OC
SECTION 3.
No. 1.
Question asked in the House of Commons, March 15, 1909.
Mr. Lonsdale,-To ask the Secretary of State for Foreign Affairs whether he has received any reports with reference to the construction of the Shanghae-Hangchau- Ningpo Railway; is be aware that stipulations in the loan contract that material for construction should be purchased by tender, with a preference to British goods, have been violated; and whether, in view of the fact that the construction and control of this railway were to be entirely vested in the Imperial Chinese Government, he intends to take any action to secure that British money lent to China shall be employed for the furtherance of British trade.
Answered by Mr. McKinnon Wood (for Sir Edward Grey).
The reply to the first part of the question is in the affirmative. As regards the second part of the question, I am not aware that any purchases have yet been made of railway materials out of the loan funds, but it seems clear that, in other respects, the terms of the contract as to the disposal of these funds are not being observed, and His Majesty's Minister at Peking has therefore been authorized to make a formal representation to the Chinese Government in regard to the construction of this railway. In answer to the last part of the question, I must point out that whether money should be lent to China, and, if so, on what terms, is primarily a question for those who have the money to lend, but we are anxious to do all in our power to secure that when money has once been lent the conditions on which it is lent should be observed. 1 would point out that for money to be borrowed and wasted is not in the interest of the lenders, and still less so in that of China herself, whose credit will certainly suffer thereby.
[2193 p-3]
52