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regard to the immediate neighbourhood of their railway from Meng-tzu to Yünnan-fu, have been made public. (See Annales des Mines,' tome xi, 3 et 4 livraison de 1907, Paris. Notes sur la Géologie et les Mines de la Région comprise entre Las Kay et Yunnan-sen,' par M. H. Lantenois, ingénieur-en-chef des mines, directeur du Service des Mines de l'Indo-Chine; M. Counielon, chef du Service géologique; M. Monsuy, du Service géologique; Lieutenant de Batz, du Service géographique, &c.). To the most casual reader of these reports it is evident that the French authorities expect large returns from the mines, and that, in the choice of a route for the railway itself, they were largely influenced by the presence of mining fields likely to yield profitably when scientifically exploited. Is it, then, reasonable to suppose, after the extensive work done by the above and by other, both open and confidential, mining and geological expeditions, and in face of what the French hope to derive from the minerals of Yunnan, that any endeavour will be forgone or any concessions remain ungranted whereby trade in metals and minerals, and the revenue derived from such, shall be allowed to pass unnoticed elsewhere ?
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Although the French railway is reported to be fast nearing completion, I do not think that at the present moment there is much likelihood of the old-established orpiment trade with Burmah, and its certain markets, drifting castwards to new routes and a fresh market which would have to be developed. Still, it is best to he aware of the present situation, which is entirely a new one, for whereas in the past, no element of uncertainty has ever been involved, now a new and disturbing influence is introduced; and how far the trade in those metals and minerals (which I am here especially to investigate) is likely to be affected is a matter which future events alone will decide."
The lieutenant-governor regards these reports as affording strong support to the suggestion that, a railway from Bhamo to Talifu, though a difficult and costly undertaking, would, after no great length of time, pay a fair return on the capital expenditure, and to the contention that the construction of such a railway is essential if British trade with Yünnan is to hold its own against French competition. Mr. Coggin-Brown's reports deal mainly with mineral resources in Yünnan. But there are signs that other industries are also capable of great development on the improvement of communications. As an instance, I am to solicit a reference to the "report on the trade of Tengyueh for the year 1908," in which the British consul at Tengyueh remarks:-
"Thus isolated from the world, Western Yünnan has been driven to become self- supporting, and possessing a fertile soil and a variety of climates depending on the different altitudes of the inhabited plateau, the country people have learned to a great extent to rely upon their own resources. Rice and vegetables are produced in abundance, with the result that there is a large and prosperous population with substantial and comfortable houses, and lacking little but the cotton with which both Chinese and Shans are clothed in a uniform blue. For many years the raw cotton yarn required by the people has been carried by mules from Burmah, and the construction of a good road, as well as the establishment of a custom-house with a moderate and definite tariff, has proved in its few years of trial that the trade has possibilities of considerable development, and that this prosperous line of valleys may be looked to as an important consumer of foreign goods."
And in the same report Mr. Rose concludes a discussion as to the probable effect of the French railway with the following words :--
"The mule caravans plying between China and Burmah are conducted by muleteers from the Yunnan highlands, who are unable to cross the low-lying malarial valleys of the frontier district during the rains of the four summer months. The trade route is therefore only practicable during the open season, and this factor alone will prove a heavy handicap to the interests of British India when a railway is running from Yunnan-fu to Indo-China all through the year. The question of com. munications in South-West Yunnan now calls for the serious consideration of the officials and people of China, and of those in British India and Burmah for whom the trade of these regions has a real and growing interest. There is a large and thriving population with a long tradition of trade to and from Burmah, but, as the example of Chefoo and Kiaochao has amply proved, no tradition and no vested interests can overcome the practical needs of commerce, even amongst the most conservative people in the world."
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This is a clear warning that if the construction of a railway from Burmah is much longer delayed, not only will British commerce miss a great opportunity of extension, but the trade which at present exists will pass into the hands of the French.
4. The unequivocal nature of the engagement made by the Chinese Government in 1902, which undoubtedly gives to the British Government the right to railway concessions in Yunnan similar to those given to French enterprise, has been more than once pressed upon the Chinese Government by His Majesty's Minister at Peking, but it has not hitherto been thought practicable to use this engagement as a means of obtaining a concession for the construction of a British railway to Talifu. And in the correspondence of which copies were received with your endorsement dated the 29th May, 1908, it was decided to take no further action at present with a view to securing a concession for the construction of a line beyond Tengyueh. His Majesty's Minister at Peking accordingly informed the Chinese Government in October 1908 that, while the British Government had no intention of abandoning the claims main- tained since 1902, it was willing to leave their discussion in temporary abeyance, and he put before the Chinese Ministers a very moderate scheme, namely, the construction of a railway from the Burmah frontier to Tengyueh on the basis of the terms accepted by China for the Tien-tsin-Pukow line. Sir John Jordan at the same time explained to the Wai-wu Pu that the Tengyueh section would be the natural beginning of railway construction, and that the prolongation of the line to Talifu or Yünnan-fu would doubtless follow. From the correspondence forwarded with your endorsement dated the 5th March, 1909, it appears that the Chinese Government has from time to time assured His Majesty's Minister that the matter is receiving careful consideration, but that great opposition was to be expected from the province of Yunnan, which was bent on keeping railway construction in its own hands. And from Sir John Jordan's despatch dated the 3rd March, 1909, a copy of which was forwarded with your endorsement dated the 20th April, 1909, it appears that at that time considera- tion of the question had been deferred pending the arrival at Peking of the departing and the new Viceroy of Yunnan. If it is possible to do so, the lieutenant-governor ventures to submit that it is of great importance to expedite a settlement. The Tonking-Yunnan Railway was expected to reach Mengtse in the spring of 1909, the completion of the line being promised early in 1910. It is possible that the line may reach Yunnan-fu as early as November 1909. In the intelligence report of the British consul-general, Yünnan-fu, for the period ending on the 31st March, 1909, it it remarked that--
"It is generally held in French circles at Mengtse and Yunnan-fu that the Burmah-Yunnan Railway scheme has been abandoned in deference to French protests that it would interfere with French railway projects in Yünnan.”
The alleged opposition on the part of the people of Yunnan to the proposed railway from Burmah is, the lieutenant-governor believes, a mere invention. Mr. Lilley carried out his surveys in 1905 and 1907 without any opposition, and reported that the people gave every evidence of friendliness. Mr. Coggin-Brown travels in Yünnan without molestation. Intercourse between Burmah and Yunnan is free and friendly, and the British consular and frontier officers are on very good terms with the local Chinese officials. Basing his observation on constant communi- cation with our consular officers during the past four years and on the attitude of the people of Yunnan to our prospectors and explorers, bis Honour has no doubt that the whole semblance of opposition has been engineered by a few local officials, and that the suggestion of active opposition by the populace is quite unfounded. The attempts of the local officials to raise funds for the construction of a Chinese railway have proved a total failure, and the lieutenant-governor believes that there is no prospect either that the people of Yunnan will provide the necessary funds to construct a railway or that they will feel or display any genuine hostility if a railway is constructed by foreign capital. His Honour hopes therefore that the Government of India may see their way to press upon His Majesty's Government the urgent need of taking such measures as will induce the Chinese Government to accede to a prompt and reasonable settlement. If the French railway is established and working before effective steps have been taken to ensure the provision of railway communication between Burmah and Yunnan, a serious and probably irretrievable injury will have been inflicted on the prospects of British commerce and of legitimate British influence in Western China.
I have, &c.
W. F. RICE, Chief Secretary to the Government of Burmah.
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