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her railways for commercial or industrial purposes within her own territories, our interest being limited to the general advancement of trade.
If further stress is laid by Russia on the convention we respectfully suggest that, seeing that the conditions which existed in 1898 no longer prevail, the time has come for determining the territorial restrictions therein contained as out of keeping with modern conditions and a barrier to progress.
In suggesting that His Majesty's Government should exercise its good offices with the Japanese, as well as with the Russian Government, in favour of removing the obstacles to the construction of this line, the association does so in the belief that the adoption of the policy advocated will tend to cement the existing friendship with both nations.
As in the case of our criticism of the proposed Japanese tariff which my committee felt it incumbent upon them to put forward, we are strongly of opinion that the development in common of the economic interests of our respective countries is the surest way of permanently maintaining close friendship. When claims are made which tend to conflict with these interests we believe that a frank expression of the views held by the commercial interests primarily affected is calculated to establish rather than to diminish the mutual confidence which is so essential.
In these circumstances my committee would respectfully express the hope that the influence of His Majesty's Government will be exercised in favour of furthering the development of railway enterprise in Manchuria and of supporting the claims of our industry when legitimate contracts for railway construction are obtained by British subjects.
I have, &c.
F. ANDERSON,
Chairman.
[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS,
CONFIDENTIAL,
[24534]
No. 1.
[July 7.]
SECTION 1.
RECR Regs 28 JUL 10,
Mr. Max Müller to Sir Edward Grey.--(Received July 7.)
(No. 203.) Sir,
Peking, June 18, 1910. IN my despatch No. 127 of the 28th April I described the position of affairs in regard to the Shanghai-Ningpo Railway, and I added that, in view of certain negotiations then pending between the Board of Communications and the Kiangsu Railway Company, which the Director-General of Railways considered might possibly result in a recovery of the control of the line, I was in favour of exercising still further patience for the moment.
Since then his Excellency Liang Shi-yi has been down to Canton, and on his way he visited Shanghai and Hangchow, but he appears to have achieved nothing towards bringing the provincial railway companies to listen to reason.
Mr. Mayers saw Liang Shi-yi soon after his return, and found him very despondent. He confessed that absolutely no progress had been made in the last two monthis, and that several months must still elapse before the provincial companies would be reduced to such financial straits that they would be obliged to apply to the Board of Communications for money, and until their resources were exhausted he did not consider that any action on the part of the Government was possible.
I agreed with Mr. Mayers that the corporation could not be expected to quietly accept this prospect of further indefinite delay, and that the time had come for this legation to make another attempt to force the Government to give effect to the loan agreement, and I accordingly addressed to the Wai-wu Pu the note of which I have the honour to enclose a copy.
At the interview that I had at the Wai-wu Pu on the 14th instant I took the opportunity to emphasise the importance which His Majesty's Government attached to arriving at a solution of this vexed question. I repeated much of what I said in my note, and on Mr. Liu Yu-lin remarking that the Wai-wu Pu had no authority over the Board of Communications and could not even obtain replies to their letters, and suggesting that I should myself see IIsu Shih-ch'ang, the president of the board, I replied that I saw no necessity for adopting such a course, and that I must look to the Wai-wu Pu to secure the fulfilment of the conditions of the loan agreement. The Wai-wu Pu had perhaps no direct authority over the Board of Communications, but all they had to do was to adopt the suggestion contained in my note, viz., memorialise the throne to issue a decree instructing the board to resume control of the Shanghai- Ningpo Railway and proceed with the construction of the line to Ningpo in accordance with the terms of the loan agreement.
I have, &c.
W. G. MAX MÜLLER.
Enclosure in No. 1.
Your Highness,
Mr. Mor Müller to Prince Ch'ing.
Peking, June 14, 1910. AT an interview at the Wai-wu Pa on the 20th April I had the honour to remind his Excellency Liang Tun-yen that Sir John Jordan's note of the 21st December on the subject of the Shanghai-Ningpo Railway still remained unanswered, and that, so far as I knew, nothing had been done towards carrying out the repeated promises of the Wai-wu Pu and the Board of Communications that the provisions of the loan agreement would be strictly complied with. His Excellency said that a reply to Sir John's note would be sent, but up to the present this has not come to me.
From enquiries which were made at the Board of Communications at the beginning of April by the representative of the British and Chinese Corporation, it appeared that the board anticipated an early assumption of control over the Kiangsu section of the line, to be followed at no distant date by the complete restitution of
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