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

289

CHINA RAILWAYS.

CONFIDENTIAL.

[21457]

No. 1.

C

(June 16

20141

SECTION 1.

Rece Bro2 1 J 10

(No. 169.) Sir,

Mr. Max Müller to Sir Edward Grey.-(Received June 16.)

WITH reference to my despatch No. 155 of the 16th instant, I have the honour

Peking, May 27, 1910. to transmit herewith a copy of a despatch from His Majesty's consul-general at Mukden confirming Mr. Wilkinson's information as to the intention of the provincial authorities of Manchuria to proceed with the construction of a harbour at Hu Lu Tao on the plans submitted by Mr. Hughes.

From a conversation I have had with Lord ffrench I gather that it is very unlikely that the American group would advance the necessary money unless the contract for the construction of the harbour were given to Messrs. Paulings. Lord ffrench knows nothing of any decision either on the part of the provincial or of the central Govern- ment to proceed with the construction of any portion of the Chinchow-Aigun Railway without awaiting the conclusion of an agreement with either Russia or Japan, and he was convinced that if any such decision had been come to the Viceroy would have let him know, and to his mind it would be curious policy to commence constructing the harbour before the question of the line was settled.

I have, &c.

W. G. MAX MÜLLER.

Enclosure in No. 1.

Consul-General Willis to Mr. Max Müller.

(No. 27. Confidential.) Sir,

MR. WILLOUGHBY HUGHES, a civil engineer in the employ of the

Mukden, May 24, 1910. Manchurian Government called on me yesterday, and informed me that the provincial authorities had told him they were now prepared to proceed with the scheme he had drawn up for the construction of a harbour at Hu Lu Tao. Mr. Hughes estimates roughly the cost of the works at 4,000,000 taels, and for this sum he will provide wharf accommodation for sixteen steamers.

From Mr. Hughes' observations during the past two winters it would seem that the harbour will in all probability be ice-free except for a period of from three weeks to a month from about the middle of January onward.

The money for this enterprise, Mr. Hughes thought, was to be provided by the American group represented in China by Mr. W. D. Straight, the harbour scheme being in connection with the proposed Chinchow-Aigun Railway, which the Chinese Government had now decided to build, at any rate, as far as Tao Nan Fu, leaving the question of connection with the Russian line open for discussion at a more favourable opportunity.

Mr. Hughes also informed me that steps were being taken to form a Chinese syndicate for the opening of coal mines at Pei Piao, about 50 miles north-east of Chinchow.

From conversations I have had recently with the Commissioner of the Mukden Foreign Bureau I have gathered that it has been for some time past the desire of the provincial authorities to make a start on the Chinchow line without awaiting the conclusion of any agreement with either Russia or Japan, and it would appear from Mr. Hughes' information that the central Government have now been brought to acquiesce in their views.

Mr. Hughes, who asked that the conversation should be treated as confidential, promised that he would later send me a map showing the details of the proposed construction works at Hu Lu Tao.

I have, &c.

ROBERT WILLIS,

[2792 q-1]

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