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Last month tenders were invited for the dredging of 1,200,000 cubic yards. Two tenders were sent in on the 6th instant, one by the East Asiatic Dredging Company, the present contractors, and the other by a Chinese Syndicate, the latter being the lower. It was found, however, that there were not sufficient funds available to place a contract for such a large amount of work, and efforts were made to induce the two tenderers to quote a price for 600,000 cubic yards only. The East Asiatic Dredging Company replied on the 8th instant with a very much lower quotation than their Chinese rivals, while the latter declined to tender again, and are reported to have con- sidered the action of the Board in the light of a trick to prevent their obtaining the original contract.
The Chinese Syndicate, however, with which it is freely rumoured that the taotai himself, as well as Mr. Ku Hung Ming, is associated, have no plant in Shanghae, and would require three months' grace in order to procure the same from Tsingtau and elsewhere.
M. de Rijke recommended the acceptance of the East Asiatic Dredging Company's second tender, but on the 9th instant the taotai wrote to Mr. Hobson requesting him to direct M. de Rijke not to commence work on the closing of the ship channel, and disclaiming responsibility if the work were commenced without authority. He gave as grounds for this action the instructions received from the Viceroy to the effect that as the Treasury was empty and all the funds called for by the Convention had been provided, no further expenditure was to be incurred until the matter had been fully discussed.
To this Mr. Hobson replied by disclaiming on his part all responsibility in the event of the taotal's instructions resulting in the blocking of both channels.
No contract for further dredging, however, was made, and on the 11th instant the Chamber of Commerce addressed to the Conservancy Board a letter of enquiry on the subject. The Board's reply, dated the 13th instant, stated that, in the opinion of the Commissioner of Customs there were sufficient funds available for immediate require- ments provided the accumulated interest fund in the taotai's hands were paid to the Conservancy account.
A meeting of the Conservancy Board was held on the 15th instant, the results of which appeared at first to support Mr. Hobson's optimistic view, for as reported in my telegram of the 16th instant, the taotai weakened in his opposition to the continuance of the work and asked Mr. Hobson to obtain an amended estimate. This was duly submitted, but the taotai's reply was most unsatisfactory in tone, and merely referred the matter to the Viceroy.
As regards the accumulated interest fund, which consists of the interest which accrued on the funds provided for Conservancy before actual work was commenced, Mr. Wan, the taotai's interpreter, who for a long time past has represented the taotai at the meetings of the Board, has stated that half of it had been remitted to the Wai-wu Pu, and there seem to be donbts as to the availability of the balance.
In any case it had now become clear that all hope of obtaining funds locally had vanished.
On the 18th instant the East Asiatic Dredging Company, at M. de Rijke's request, made a final offer to the Board to continue dredging without a contract, in the hope of eventually securing one, provided certain conditions were agreed to, and asked for an answer by the 23rd instant. The secretary of the Board wrote on the 20th instant that no reply could be given pending reference to Nanking or Peking, and in consequence the company ceased all dredging operations on the 21st instant-as reported in my telegram of that date.
This state of affairs has naturally provoked much comment among the mercantile community of the port; the best local opinion is convinced that M. de Rijke's word on the question of the relative urgency of the different portions of the work must be accepted as final, and the whole community is genuinely concerned at the prospect of damage being caused to the scheme by any delay in resuming dredging operations at this juncture.
The Chamber of Commerce addressed the senior consul on the 15th instant, asking that representations should be made without delay to the authorities concerned, and on the 21st instant, when the dredging ceased, M. de Rijke himself addressed the Board, disclaiming responsibility for the consequences and requesting that the consular body be made acquainted with the facts. This letter reached the senior consul yesterday, and it is proposed to address a telegram to the diplomatic body as soon as possible.
I have informed the principal British interests concerned of the facts conveyed in
your telegram of yesterday's date, but I fear that their auxiety will not be easily allayed, and unless authority for the immediate resumption of dredging is forthcoming very shortly I believe that stops will be taken to convene a public meeting in order, if possible, to emphasise the necessity for prompt action.
I have, &c.
S. BARTON.
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