Sir,

2

Enclosure 1 in No. 1.

Mr. Robertson to Sir J. Jordan,

December 15, 1909. I HAVE the honour to lay before your Excellency copy of a letter dated the 8th December from the joint managers of the corporation in Shanghae, in reference to the } position of affairs on the Shanghae-Hangchow-Ningpo Railway, in which it is stated that the administration of the line under the local bureaux, since the departure of President Tang, has gone from bad to worse.

In view of the very serious conditions now obtaining in the construction of this railway, whereby the chief engineer, appointed in terms of the loan agreement, is entirely ignored, and where the loan funds are being irregularly used, I venture respectfully to request that your Excellency may be pleased to draw the attention of the central authorities to this most unsatisfactory state of affairs, and to urge upon them full recognition of the loan agreement.

I have, &c.

Sir,

Enclosure 2 in No. 1.

G. A. ROBERTSON,

Messrs. Jardine, Matheson, and Co. to Mr. Robertson.

December 8, 1909. WE have for acknowledgment your letters of the 20th and 29th ultimo; contents noted with thanks.

Shanghae-Hangehow-Ningpo Railway.-During President T'ang's absence two joint acting presidents have been appointed to conduct the affairs of the Chekiang bureau, with the result that the administration of the line has gone from bad to worse. The engineer-in-chief complains that whereas he was formerly, although practically ignored, treated with civility, marked discourtesy is now shown him.

Purchases of timber and cement have been made without any reference whatever to Mr. Foord, who had previously informed the Chinese that no such material was required until the survey between Hangchow and Ningpo was completed.

The most serious aspect of the situation is, however, that the Yuchuanpu has apparently vacated the strong position it had taken up of not making further loan funds available until the authority of the managing director's office was recognised by the two local bureaux, and has recently paid over a sum of 300,000 taels without further insistence on the above point.

This amount, together with the 500,000 taels already handed over to the local bureaux, makes a total of 800,000 taels of loan funds which are being frittered away towards making good the, deficit on the working of these two badly constructed and maintained railways, and, worse still, in the purchase of useless and inferior materials. Under the fourteen regulations, approved by Imperial Rescript on the 15th April, 1908, the above amount of 800,000 taels should have been paid over to the local bureaux before the 6th October, 1908, and the whole amount of the loan made by the board to the bureaux, viz, 7,500,000 to 10,000,000 taels, should be issued at the latest by the 6th March, 1910, failing which the regulations become void, and all amounts received by the bureaux must be refunded. Possibly the board is relying on this condition to abrogate the fourteen regulations and cancel the loan made by it to the bureaux, but we fear this is hardly probable.

We shall be obliged if you will bring the present position of affairs on this railway to the notice of Sir John Jordan.

We are, &c.

JARDINE, MATHESON, and Co.

Enclosure 3 in No. 1.

(

3

207

C O

since Jardine, Matheson, and Co.'s letter of the 8th, I am now in receipt of the latter' 196

telegraphic reply stating: Shanghae-Hangchow-Ningpo Railway: position exactly the same as per our letter of the 8th December."

Your Highness,

G. A. ROBERTSON

Rra II EL 10

Enclosure 4 in No. 1.

Sir J. Jordan to Wai-wu Pu.

Peking, December 21, 1909. I HAVE the honour to acknowledge the receipt of the Wai-wu Pu's letter of the 16th December, the general effect of which is that in consequence of an exchange of views between the Board of Communications and the former President Tang, the affairs of the Shanghae-Ningpo Railway will be managed without friction in the future. The letter further says that the engineer-in-chief is at the present time surveying and generally performing his duties.

Since the receipt of this letter, telegraphic information has reached me from the British and Chinese Corporation in Shanghae which, unfortunately, shows that the affairs of the railway have lately gone from bad to worse, and it would appear that the Board of Communications is under a misapprehension as regards the position of the engineer-in-chief, who complains that whereas he was formerly treated with civility, Purchases of though practically ignored, marked discourtesy is now shown him. timber and cement have been made without any reference to Mr. Foord, who had previously informed the officials concerned that no such material was required until the survey between Hangchow and Ningpo was completed. Moreover, the loan funds are being drawn upon heavily, and employed without any regard whatever to the provisions of the loan agreement. Recently a sum of 300,000 taels was so drawn, and is no doubt being spent irregularly.

I have the honour to request that the attention of the Board of Communications may be invited once more to these facts, and that the promises lately given to me both by the Wai-wu Pu and the board, that the provisions of the loan agreement will hence- forth be strictly complied with, will be fulfilled in letter and spirit with as little delay as possible.

I have the honour to request the favour of an early reply for the information of His Majesty's Government, and avail myself of this opportunity to renew to Your Highness the assurance of my highest consideration.

J. N. JORDAN.

Dear Mr. Liang,

Enclosure 5 in No. 1.

Sir J. Jordun to Liang Shih-yi.

December 31, 1909.

AT our recent interview I understood you to say that the total payments which had been made out of the Shanghac-Hangchow-Ningpo railway funds to the two railway bureaux of Kiangsu and Chekiang amounted to 800,000 taels.

From a statement which has been furnished to me by the Hong Kong and Shanghae Bank it appears, however, that you have made requisitions on the loan funds to the extent of 2,760,000 taels.

As the matter is one which continues to cause great anxiety to His Majesty's Government and myself, and affects the good name of all concerned, I shall be grateful if you will kindly let me know where the sum of 1,960,000 taels, which represents the difference between what was issued to the bureaux and the requisitions drawn by you, is now deposited.

Believe me, &c.

J. N. JORDAN.

Mr. Robertson to British Legation.

December 17, 1909.

WILL you please inform Sir John that, in response to my enquiry as to whether there was any improvement in the affairs of the Shanghae-Hangchow-Ningpo Railway

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