[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[30179]
No. 1.
C
30223
RECO
Regust09] 10
SECTION 2.
Sir,
India Office to Foreign Office.-(Received August 19.)
India Office, August 18, 1910. I AM directed by the Secretary of State for India in Council to acknowledge the receipt of your letter of the 26th July, 1910, with which you forward a copy of a telegram from His Majesty's chargé d'affaires at Peking, reporting an arrangement agreed to between His Majesty's consul-general at Yunuan and the Chinese Provincial Viceroy for the construction of the railway from Bbamo to Tengyuch,
In reply I am to say that the scheme contemplated by Lord Morley was that indicated in the letter from this Office of the 6th August, 1908. He would, however, have no obection to an arrangement under which each Government would construct the portion in its own territory, provided that the construction of the line is actually undertaken within a reasonable time; but he cannot agree that the Chinese section of the line shall be constructed by the Chinese Government, with funds to be supplied by the Indian Government, as is contemplated in the arrangement explained in the cnclosure to your letter.
Lord Morley is of opinion that if the Chinese Government is unable itself to construct the Chinese portion of the line within a reasonable period, it should be pressed to give a concession to a company to carry out the work.
Subject to Sir E. Grey's concurrence, I am to suggest that His Majesty's Minister at Peking should be instructed in accordance with the above observations.
I have, &e.
R. RITCHIE
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