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from the accumulated funds of the board, amounting to 50,000 taels, was appropriated. The taotai also undertook to guarantee a loan of a further 50,000 taels, and this was the subject of a special memorial at the time, which is now on record.
"The taotai now reports in detail to the effect that he has had repeated discussions with the local notables and merchants, and they have all expressed the view that the proposal to effect a connection with the pipes was to begin with a compromise, but that independent action is the better plan. The foreign engineers of waterworks in the interior were accordingly requested to be good enough to come forward, and all proceeded to the Soochow Creekside for the purpose of a survey. It was found that to the north of the Canton Cemetery the water is deep and clear, and there is a piece of land at the point in question about 20 mow in area whereon the waterworks can be established. The most convenient method of proceeding in the first place is to construct a high water tower, and two large sand filters, and one reservoir. A contract for the purchase of the necessary material from abroad will be fixed, and for two machines capable of producing 600,000 gallons in twenty-four hours. A further purchase to be effected will be one electrical machine for the installation of 2,000 electric lamps for street lighting in the Chapei district, with provision for the necessary land purchase and construction inclusive. The funds required will amount to 100,000 tacls, which, together with 100,000 taels already prepared for the connection project, will amount to a sum of 200,000 taels. By working day and night water can be supplied within eight months. In respect to this extra amount of 100,000 taels required it is requested that 50,000 taels be loaned from the moneys held by the Board of Commerce, while another 50,000 taels will be a loan guaranteed by the taotai, and interest on the whole will be paid at 7 per cent, per month. Within a year from the date of supply of water shares will be sought, and the mercantile and official funds above mentioned will be repaid. If the shares issued during oue year are insufficient, and both the mercantile and official funds cannot be repaid, the capital and interests on the board's loan will be paid first, and if there is still insufficient for that also repayment will follow yearly from the profit account, and reports will be submitted regularly until the whole is paid off.
The Viceroy has been accordingly respectfully invited to request the Throne to give directions to the board for approval of the scheme by way of compromise, so that the work can be commenced at an early date."
The rescript from the Throne thereon is as follows :-- "Let the board concerned take note."
Sir,
Enclosure 6 in No. 1.
Dean of Consular Body to Municipal Council.
Shanghai, June 16, 1910. I HAVE the honour to refer to your letter of the 13th April as to the proposed establishment of waterworks in Chapei. As you are no doubt aware, the question has already received a commencement of practical solution. constituted, and orders for pipes and machinery have been placed with Chinese and A company has been foreign firms; the foundations for the buildings are now completed.
The consular body concurs in the view that it is not in the best interests of the population of Chapel nor those of the Chinese authorities that a second system of waterworks be established in a district that is already supplied by the Shanghai Waterworks. It is evident that this new departure is principally intended to interfere with our intention to extend the foreign settlement in the direction of Chapel, and we are thus bound to oppose it. On the other hand, it must be recognised that said extension has been steadily refused by the Chinese, also that their endeavour to provide the neighbourhood of the settlement with roads, light, water, police, &c., is commendable in itself, and that we cannot blame them on that account. Besides, it must not be forgotten that foreign interests might be or are already in the Chapel Waterworks. But we cannot admit any interference with the already laid down pipes or their connection with the houses along the roads where these pipes exist. Such pipes have been laid down on municipal roads with the agreement of the council, and on Chinese roads with the consent of the Chinese authorities. We cannot hope, however, to make the Chinese desist from establishing a waterworks system on their own roads where the Shanghai Waterworks have not yet been allowed to carry their system, though it is manifestly undesirable that a new system of waterworks be established in a district that is likely to become part of the settlement.
I am directed to write to the taotal accordingly, and to report to the diplomatic body in Peking.
Enclosure 7 in No. 1.
I have, &c.
D. SIFFERT.
Sir,
Enclosure 5 in No. 1.
Dean of Consular Rody to Ts'ai Ta-jén,
Shanghai, June 16, 1910. THE consular body has taken cognisance of a memorial to the Throne by the Governor-General at Nanking, submitting a scheme for the establishment of water- works in Chapci, which memorial has been published in the local press.
The Shanghai Waterworks Company has already the main pipes laid down in the principal thoroughfares of Chapei, with the consent of the authorities concerned, and the capacity of the reservoirs and works of this company are amply sufficient for supplying the whole district with water.
On the other hand, we consider that this suburb of Chapei is indivisible by its shape and position from the international settlement itself, and we have already applied repeatedly for its inclusion in the limits of this settlement.
Under these circumstances, the establishment of a second system of waterworks is unnecessary and undesirable, for it would increase the present difficulties without serving the interests of the population, and I am directed to request you to convey to his Excellency the Governor-General our suggestion that this project should not be carried on, and that the existing water system should in no way be interfered with, but developed.
I have, &c.
D. SIFFERT. .
Consul-General Sir P. Warren to Mr. Max Müller.
(No. 51.) Sir,
Shanghai, June 21, 1910. WITH reference to my despatch No. 36 of the 13th ultimo on the subject of the gas and water companies' operations in the northern suburb, I have the honour to enclose herewith copy of a letter addressed by the municipal council to the senior consul on the 13th April, protesting against the establishment of rival waterworks by the Chinese authorities.
This letter was discussed at the meeting of the consular body held on the 10th ultimo, when it was decided to refer the matter to a committee composed of the senior consul, my Austrian colleague, and myself.
This committee met on the 7th instant, and decided on drafts of letters to the diplomatic body, the taotai, and the municipal council. These drafts having been approved by the consular body, the letters, copies of which are enclosed,* dispatched on the 17th instant.
were
Meanwhile work on the new Chinese waterworks is proceeding; the foundations are being laid, and contracts for the pumping machinery have been made with an Austrian firm. Some difficulty has been experienced, however, in financing the scheme, and the ability of the Chinese company to provide the necessary funds is distrusted by native contractors and compradores of foreign banks alike. This distrust arises from the existence of official control of the scheme and from the knowledge that the scheme cannot be made to pay. The native press yesterday contained a telegram from Peking to the effect that the use for this purpose of funds at the disposal of the Board of Commerce had been sanctioned as requested in the Viceroy's memorial forwarded in my despatch No. 31 of the 9th April.
* Not printed.
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