[This Document is the Property of His Britannic Majesty's Governtent()

CHINA RAILWAYS.

CONFIDENTIAL.

[221]

No. 1.

100

2765

RECO [Jan 10

SECTION 5.

(No. 468.) Sir,

Sir J. Jordun to Sir Edward Grey.--(Received January 3, 1910.)

Peking, December 16, 1909. WITH reference to my despatch No. 441 of the 30th ultimo, I have the honour to transmit to you herewith copies of two further despatches from His Majesty's Consul- General at Hankow respecting the provincial agitation against the railway loan negotiations and the efforts of the "Ilupei Railways United Association" to obtain funds for the construction of railways with Chinese capital alone.

I have, &c.

Inclosure 1 in No. 1.

J. N. JORDAN,

Consul-General Fraser to Sir J. Jordan.

(No. 74.) Sir,

Hankow, December 1, 1909. I HAVE the honour to report that on hearing of the Viceroy Ch'en's transfer to Chihli I offered to call and congratulate him. Somewhat to my surprise his Excellency, instead of making the usual excuse of press of work, promptly replied inviting me to visit him on the 29th ultimo.

He expressed approval of the pamphlet forwarded in my letter of the 28th ultimo,* adding that the defence of the late Grand Secretary Chang's loan negotiations came The better from a foreigner than a native, who might be charged with partisanship. employment of the vast number of refugees on railway embanking was undoubtedly far preferable to maintaining them by doles for several months, a course tending, by destroying their self-respect, to convert labourers into regular beggars, but the entire control of railway work was in the hands of the Peking authorities, and he could not intrude advice to add this form of relief work to the repair of dykes and clearing of canals and drains. Besides, the gentry and others would insist on a re-survey of the railway traces, as they were not satisfied with those already laid out.

This remark showing that his Excellency took the anti-loan agitation seriously, I rejoined that it would be a pity to let the work of competent experts executed at con- siderable cost be thrown away at the bidding of men of no special knowledge, even if their promises of share-capital were less untrustworthy than the Viceroy had himself suspected a year ago.

His Excellency admitted that there might be difficulty in raising shares in hard cash, and declared emphatically that had his Excellency Chang survived the loan would have excited no opposition, but he commented on the amount of money spent on salaries for men who effected little or nothing, even though, as I interpolated, this comparative idleness was not their fault.

His Excellency's attitude throughout the conversation, which also touched on the exclusion of rice for Hupei from the impending Flunan export prohibition, evinced extraordinary indifference to, and lack of interest in, current questions, together with absolute determination not to expose himself to the risk of odium or trouble of any kind. Thus he professed to recognise the danger to international relations of such a propa- ganda as is foreshadowed in the railway association's circular, of which condensed translation by Mr. Eastes is enclosed,* but he did not seem to conclude therefrom that it was any part of his duty to prevent the circulation of anti-foreign calumnies.

Meanwhile, the native papers report the efforts of the railway association to collect funds, as well as promises to take shares, but from one circular (translation enclosed") it appears that the local men of substance are standing aloof, and the promoters have

'spontaneity' to threaten to call upon them individually, a threat explanatory of the " with which the movement is boasted to meet.

77

[2581 -5]

* Not printed.

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