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At this present we are informed that the Germans are most strenuously opposing its construction much on the same grounds as the Japanese have been opposing the extension of the railways of North China to Fakumen and beyond.
As a matter of fact, the Chefoo line would run at right angles to the present Tsi-nan-fu-Tsintau Railway, and would tap a considerable district which that line cannot hope to reach.
The German opposition to its construction is much of the same "dog in the manger" quality as that of the Japanese in Manchuria. Their idea seems to be that the further opening up of Shantung Province will divert the natural trade from the German port of Tsintau. This is tantamount to asserting that Germany, having leased a port in that province, and having obtained a Concession to construct a certain branch of railway, has thereafter the right to close the whole province to further schemes of development, unless, perhaps, the planning of same is left in German hands, to the end that they may divert the whole trade of the province to their leased port.
This is surely equivalent to a declaration that by leasing Tsintau to Germany China forfeited the right to facilitate trade with any of her own ports in that province. This is, on the face of it, an absurd and unreasonable contention. Great Britain would under such circumstances also have a right to demand a similar privilege with regard Wei-hai Wei. How would Germany be able to combat such a demand, both coun- trics having Treaties under the "most-favoured nation" clause with China ?
Surely, then, the owners of the province, ports in which only have been leased ostensibly merely as "naval bases," to the right of developing the resources of such province in whatever way they see fit.
The line in question was sanctioned by the Throne
many months ago. The money is forthcoming for its construction, and everything is ready to proceed to work, but we hear the German officials in Shantung have forbidden its commencement. We hear also rumours, though we trust for the credit of Germany that they are untrue, that threats have been made that Germany will utterly ruin the promoters of the scheme, and all officials who do not obstruct its successful carrying out; and have dared them to make complaint to the Throne. This sounds impossible, but it seems certain that the delay in the construction of the line does not come from Chinese sources.
We trust that inquiry may be instituted by the Board of Posts and Communica- tions which may lead to the reinoval of the obstruction, whatever it may be, and the speedy commencement of the construction of the line, to the benefit of the Province of Shantung and the Imperial Exchequer.
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informs me that, provided he can make the necessary financial arrangements at Shanghae, he has every hope of obtaining the contract, and in his report to the
pro- moters is suggesting that, as each section is handed over in working order, if sufficient money is not forthcoming from that particular section to pay for it, the balance shall be made good in shares, to be eventually redeemed as profits accrue.
I regret that Mr. Eckford has been unable to supply me with a copy of the Regu- lations referred to in my former despatch, as owing to their great length he is not having them translated at present.
I have, &c.
(Signed)
R. H. MORTIMORE.
Inclosure 3 in No. 1.
Consul Mortimore to Sir J. Jordan.
(No. 5.) Sir,
Chefoo, January 19, 1909. IN continuation of my despatch No. 1 of the 2nd January, I now learn that the Concession for the Chefoo-Wei-hsien Railway was granted some two years ago to a mau called Tê Fêng-t'ai, who was a contractor at Port Arthur, and is said to be naturalized as a Russian subject. This man posed at the time as being a millionaire, and obtained the Concession by stating that he had 4,000,000 tacls to devote to the project. One of the clauses in the grant was to the effect that the survey for the line should be commenced within six months from the date of granting the Concession. The local promoters of the railway here, however, have always deeply distrusted Tê, and declined to intrust him with their capital, and they have now sent a Petition to Peking asking that the Concession granted to him may be cancelled on the ground that it is now invalid owing to bis having made no attempt to start the survey. They are now busy drafting a scheme for the construction of the railway with local capital, which will shortly be dispatched to Peking for sanction by the authorities.
In this scheme it is proposed that, although no foreign loan is to be contracted yet, foreigners shall be allowed to hold shares in the concern, but only to such an extent that they shall not be able to acquire a preponderating interest. The survey is to be made by Chinese engineers, but it is probable that a competent foreigner will be appointed as Assistant Surveyor. The line is to be divided into sections, each of which will be built by capital subscribed by the inhabitants of that section. Mr. Eckford
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