[This Document is the Property of His Britannic Majesty's Government.] 453
CHINA RAILWAYS,
CONFIDENTIAL.
[4270]
No. 1.
C O [February 199
SECTION.C1.
G14 MAR
(No. 10.) Sir,
Sir J. Jordan to Sir Edward Grey.--(Received February 6.)
Peking, January 7, 1911. IN continuation of my despatch No. 462 of the 23rd ultimo, I have the honour to transmit copy of a further despatch from His Majesty's consul-general at Chengtu, enclosing an abstract of the minutes of proceedings at tlie annual general meeting of the Szechuan Hankow Railway Company, held in Chengtu on the 21st November and following days.*
The proposal to commence construction of the line from Chungking to Chengtu was carried by a majority of 182 votes to 45, and as the scheme has the support of the Governor-General, Mr. Wilkinson is of opinion that it will receive the approval of the Board of Communications. He understands that work will be begun at the Chungking end, and he considers this to be a mistake owing to the difficult nature of the country in the first section from Chungking. A line through the densely populated plain between Chengtu and Chienchow, the first section at the Chengtu end, would not only pay, but would afford a valuable object lesson to the people of Szechuan.
Mr. Wilkinson has, I think, omitted to make allowance for the difficulties of transport of railway material, whether carried overland or by river, between Chungking and Chengtu.
It was this question of transport that moved the shareholders, with the Governor- General's approval, to pass the second important resolution providing for the purchase of a small fleet of steamers similar to the "Shutung." Mr. Wilkinson mentions that while a majority of shareholders favour the new flotilla being placed under the control of the railway company, there is a strong body of opinion in Chungking which advocates amalgamation with the Shutang 3teainship Company, thus securing the services of Captain Plant, the "Shutung's" designer and commander, to supervise the construction of the new vessels.
I stated in my previous despatch that the order for these boats would probably be given to a Shanghai dockyard, and Mr. Wilkinson mentions the likelihood of the company sending a delegate to Shanghai, "who will accept the offer of the contractor who promises him the highest commission," a method of doing business for which Szechuan officials have in the past gained an unenviable notoriety.
The meeting discussed, without apparently coming to any definite conclusion, the best means of augmenting the company's capital and safeguarding the funds in hand, the interesting statement being made, on the auditor's authority, that the company had suffered a loss of 1,320,000 taels, owing to the failure of the Shanghai native banks, "of which it is hoped to recover one-half."
I have, &c.
J. N. JORDAN.
*Not printed.
[1913 ƒ--1]