[This Document is the Property of His Britannic Majesty's Government.] 144

CHINA RAILWAYS.

CONFIDENTIAL.

C O

[December 5.]

621

SECTION 1.

[44015]

(No. 418.) Sir,

No. 17 JAN ||

Mr. Max Müller to Sir Edward Grey.—(Received December 5.)

Peking, November 17, 1910. WITH reference to your despatch No. 86 of the 27th March, 1909, and to previous correspondence relative to the proposed Pukou Sinyang Railway, I have the honour to transmit herewith the copy of a letter which I have received from Mr. Mayers, representative of the Chinese Central Railways (Limited), suggesting that the time has come for reopening the discussions on the strength of the preliminary agreement into which the Chinese Government eutered in January 1899.

I have discussed this question with Mr. Mayers, who apparently is anxious that we should not allow too long a time to pass without reminding the Chinese Government of their obligations under the 1899 agreement.

Although on general grounds the moment does not seem very favourable for reviving this question, the particular objections formerly urged by the Chinese Government would seem to have been substantially weakened by the progress made in the matter of the Tien-tsin-Pukou Railway, and I am of opinion that as time goes on it becomes all the more unlikely that a more opportune moment than the present one will occur for endeavouring to advance a step further in the negotiations. I have, therefore, addressed a note to the Chinese Government, of which I have the honour to enclose copy, inviting the Wai-wu Pu to move either the Board of Communications or the Directors-General of the Tien-tsin-Pukou Railway to enter into negotiations with Mr. Mayers for a final agreement in regard to the Pukou-- Sinyang Railway.

I have, &c.

W. G. MAX MÜLLER.

Enclosure 1 in No. 1.

Sir,

Mr. Mayers to Mr. Max Müller.

Peking, November 3, 1910. I HAVE the honour to refer you to correspondence between His Majesty's Minister and Mr. Bland of the 15th May, 30th June, 9th and 11th November, 1908, on the subject of the preliminary agreement of January 1899 for a railway from Pukou to Sinyang

In answer to His Majesty's Minister's representations, the Wai-wu Pu replied that as the trace of the Tien-tsin-Pukou Railway had not then been definitely fixed, it was too early (in June 1908) to decide whether a branch line to connect the Peking-Hankow and Tien-tsin-Pukou Railways should start from Sinyang or some other station; and on a subsequent occasion, on the 11th August, as described in His Majesty's Minister's letter of the 11th November, 1908, the Wai-wu Pu expressed verbally the opinion that nothing could be done till the Tien-tsin-Pukou Railway was finished. His Majesty's Minister informed them that the Chinese Central Railways (Limited) were prepared to accept any reasonable modification of this undertaking, and that he would have to press the matter on their attention on a subsequent

occasion,

The question since that date has, to the best of my knowledge, been left in suspense, in recognition of the fact that no useful purpose would have been served in pressing it; but with the conclusion of the supplementary loan for the Tien-tsin- Pukou Railway, of which the southern section is in an advanced state of construction, with the line from Pukou to Linhaikuan almost ready for traffic, the time appears to have arrived to revive the question, and I submit for your consideration the suggestion that the Wai-wu Pu might now be invited to cause the Board of

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