2
right to satisfy ourselves as to details, and if there is anything manifestly irregular it is open to us to object. To give instances: The companies have started a native bank in connection with the railway, with which Liang says he will certainly have nothing to do. They have also made advances of (I think) 150,000 taels to the Hanyang Iron Works, and 50,000 tacls to the Yalu Timber Company, which are said to be of the nature of deposits of bargain-money against future orders for rails and timber, and these Liang says he will have to pay, and I think rightly so.
3. The corporation have already received balf their commuted commission, or 17,5007., and by the terms of the loan agreement they should receive the other half on completion of the railway, construction being estimated at three years. Now, if the companies do not submit, and the funds are transferred to the Kaifeng-Hsuchou Railway, it may be assumed that the latter line will take at least three years to build, so that, if payment of the corporation's commission is deferred till its completion, the corporation will be out of its money two years longer than was contemplated. I pointed out to Liang that this was hardly fair, and expressed the hope that he could see his way to pay the corporation the balance of their commission at the end of the three years first estimated, that is to say, next year. He would not give me a definite reply on this point, but I think I will be able to get it.
The fact is, our discussion of the revised draft was necessarily hurried. I had only just completed the translation of the Chinese (which reached me late the previous night), and Liang was leaving for a tour of railway inspection on the following day. I think, however, that we covered most of the ground, and, as I said before, he is very anxious now that no time should be lost.
[This Document is the Property of His Britannic Majestys Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[5467]
(No. 33.)
No. 1.
404
7293
[February 16.]
REGE SECTION 4.
MAR 10
Sir J. Jordan to Sir Edward Grey.-(Received February 16.)
Sir,
Peking, January 28, 1910. WITH reference to my despatch No. 207 of the 7th June last, I have the honour to transmit to you herewith copy of a despatch from His Majesty's consul- general at Canton reporting the completion of the work of surveying the proposed railway from Kucilin to Chaan-chou.
Mr. Jamieson's despatch does not call for any particular comment on my part. It is, as I have already pointed out, unlikely that the railway will be built for some time to come.
I have, &c. (For Sir J. Jordan),
W. G. MAX MÜLLER.
Enclosure in No. 1.
*
Yours very truly,
E. G. HILLIER.
(No. 1.) Sir,
Consul-General Jamieson to Sir J. Jordan.
Canton, January 8, 1910. HAVING reference to Mr. Fox's despatches No. 43 of the 13th April and No. 53 of the 20th May last, on the subject of a reconnaissance survey for a railway line to connect the West River valley with the Yang-tzse valley, I have now the honour to report that Mr. O. C. Ormsby, Messrs. Pauling and Co.'s engineer, returned to the coast yesterday, having successfully carried out the work entrusted to him.
He
He conducted the survey from Kueilin to Ch'iian-chou, up the valley of the Kuci or Fu River and down the valley of the Hsiang, a total distance of 92 miles. describes the country as not difficult from an engineering standpoint, the watershed being only 100 feet above the level of Kueilin (500 feet), but adds that, owing to the number of streams to be crossed, a great deal of bridge work will be necessary. The widest spans, of which there are three, be puts down at 800 feet; the remainder are comparatively insignificant. The cost of a narrow gauge line he estimates at 500,000%., that of a broad gauge line at 1,100,000.
According to information furnished him in Kucilin, he understands that an amount of 3,000,000 tacls in cash has already been deposited for purposes of con- struction. I am, however, inclined to think that this sum represents only subscriptions promised. In view of the amount of interprovincial traffic which came under his observation, he is sanguine as to the financial prospects of a narrow gauge line. As to the initial paying capacity of a broad gauge line, he is somewhat doubtful, although he is of opinion that, in the long run, it would prove the more economical of the two should eventually a juuction with the Yiel-Han trunk line be effected.
Now that this survey has been completed, it remains to be seen what action the provincial Government of Kuanghsi will take. For the present, at least, they appear to be disinclined to do anything, and Mr. Ormsby is returning to England almost immediately. It would serve no useful purpose to wait on here indefinitely, more especially as it is expressly stipulated in clause 3 of the original agreement between Messrs. Pauling and Co. and the governor that the provincial authorities reserve to themselves the right of assigning the contract for construction, should it be decided to build the line, to whomsoever they please.
Mr. Ormsby also gathered the impression while at Kueilin that a feeling of real apprehension with regard to anticipated aggressive movements across the southern frontier on the part of France was prevalent there, and that in consequence the building of a line from Kueilin to Nanning, along which troops could be pushed forward, seemed a matter of more urgent importance. Colour to this supposition was given by the arrival at the provincial capital of a Belgian engineer, M. Squilban, said
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