[This Document is the Property of His Britannic Majesty's Government.]

468

CHINA RAILWAYS.

CONFIDENTIAL.

[7605]

No. 1.

2050

[March 5.]

04 APR 10.

SECTION 3.

Sir J. Jordan to Sir Edword Grey. (Received March 5,)

(No. 16. Confidential.) Sir,

Peking, January 11, 1910. WITH reference to my despatch No. 465 of the 15th ultimo, I have the honour to transmit to you herewith copy of a letter from the engineer-in-chief of the southern section of the Tientsin-Pukow Railway to His Majesty's consul at Nanking. This letter contains confidential information respecting the cost of construction on both the northern and southern sections which cannot fail to be of interest, and which goes to show that the construction of the southern section will be considerably cheaper than that of the northern, probably on account of the corruption and extortion which have characterised the operations of the land department of the latter section.

I take this opportunity of mentioning that since the dismissal of Low Taotai and the appointment of a new general manager, who was formerly connected with the Shanghae-Nanking Railway, work on the southern section of the Tientsin-Pukow line seems to be going on satisfactorily.

I have, &c.

J. N. JORDAN.

Enclosure in No. 1.

Mr. Tuckey to Consul Goffe.

(Private.) Dear Goffe,

Nanking, December 31, 1909. THE following are the notes you asked for re estimates. The original estimate of the loan syndicate was, I understand, intended to cover the cost of a very cheap line. Hardly any provision was made for station buildings, and quite insufficient for rolling stock. The line which is being built is a first-class line, with easy gradients, and a sufficiency of rolling stock is being provided for. In spite of this I expect to keep within the original estimate in all engineering items, but in making out my revised estimate, I have had to allow for a combination of adverse circumstances, such as fluctuations of exchange, loss of interest due to delay, &c. My revised estimate, which includes the cost of Chinese administration, is therefore 17 per cent. above the syndicate's estimate. No doubt similar allowances have been made on the northern section, but their revised estimate is 33 per cent. above the syndicate's estimate.

The approximate figures are:---

Northern Section

Original estimate, 4,670,4171.

Revised estimate, 6,230,6221.

Cost per mile according to revised estimate, 16,5631.

Southern Section-

Original estimate, 2,737,819/.

Revised estimate, 3,222,1607.

Cost per mile according to revised estimate, 13,6231.

Yours sincerely,

T. W. T. TUCKEY.

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