158
2
Chinese Railways in lieu of the Pukou-Sinyang preliminary agreement, and to form part of an inter-group loan for the whole line from Hsian-fu to the coast.
Mr. Mayers communicated the substance of these negotiations to me, and I expressed it as my opinion that no better satisfaction was likely to be obtained in respect of the Pukou-Sinyang preliminary agreement, and that the present favourable opportunity for the settlement of outstanding questions as between the Chinese Government on the one hand and the British and Chinese Corporation and the Chinese Central Railways on the other should not be let slip.
At this juncture I thought it well again to approach the Chinese Government on the subject of the Pukou-Sinyang preliminary agreement in such manner as to open the door to a wider basis of negotiation on the above lines, and I accordingly drafted a reply to Prince Ch'ing's note of the 9th January, which, while embodying the observations on that communication suggested to me by Mr. Mayers, to which reference has been made above, urged that, in view of the adoption by the Imperial Government of a fixed policy in regard to railway construction throughout the Empire, it had become desirable to establish methods for dealing with lines for the construction of which agreements had been entered upon with British merchants.
The British and Chinese Corporation, upon learning the nature of the latest suggestions, showed themselves averse from the introduction of a Belgian element in the Hsian-fu to the coast railway, but a clearer understanding of Belgian preferential rights over the Honan-fu-Hsian-fu section will probably induce them to reconsider their objections. It is indeed desirable that they should do so, since, in the event of a refusal by the groups to participate in the undertaking, the Board of Communications might be tempted to entrust it entirely to the Belgians.
the sea.
Mr. Mayers believes it will be possible to obtain the extension of the line as far west as Lanchow-fu, and has refrained from pressing his Excellency Sheng to state whether the proposed British section should be merely to Isüchow or should reach to An order from a British court will be required to legalise the proposed transfer of the Shanghai-Ningpo Railway loan funds, and in the meantime Mr. Mayers has submitted to his principals a draft agreement for the Kiukiang- Ping-hsiang line, based, with the necessary modifications, on that concluded for the Shanghai-Hangchow-Ningpo Railway.
I have, &c.
Sir,
Enclosure 1 in No. 1.
Prince Ching to Sir J. Jordan.
J. N. JORDAN.
Peking, January 9, 1911.
I HAVE the honour to acknowledge the receipt of your Highness's note of the 17th November on the subject of the proposal of the Chinese Central Railways (Limited) to negotiate a final agreement for the construction of the Pukou-Sinyang Railway, and stating that--
[Note of the 17th November summarised.]
I accordingly addressed the Board of Communications, and have now received the following reply:---
"As regards the running of this line it would be chiefly used for passengers and goods, but it depends on the configuration of the country as to whether there is an increase or decrease in the number of passengers or goods carried. Now the Pukou- Sinyang Railway on the east starts from Pukou, the terminus of the Tien-tsin-Pukou line, and would join the Peking-Hankow line at Sinyang, the middle point. Although this line crosses the two provinces of Anhui and Honan there are no flourishing marts along it, nor are there any important strategical passes in that region. To look at the question from its commercial side, the great majority of passengers and goods passing between north and south depend on the Tien-tsin- Pukou line and the Hankow-Peking line as a means of communication. The Pukou-Sinyang line would only carry a few passengers and goods from the provinces of Anhui and Honan, so that under such circumstances the line would not be self- supporting.
"Again, looking at the question as regards the configuration of the country, we have the Tien-tsin-Pukou line to the east and the Peking-Hankow line to the west,
3
so that it is to be feared that the proposed line would be throughout merely a cross- country line. Such a line would be of no advantage in developing commerce, and no future profits could be expected, while the repayment of the loan could not be made at the appointed date, and as regards the district there are still further difficulties."
My board has carefully considered the statement from the Board of Communi- cations, and I have the honour to observe that in view of the real facts of the case it is not necessary at this time to bring the matter forward for discussion.
I have the honour to address this reply to your Excellency, and request that you will inform the British and Chinese Corporation accordingly.
I await, &c.
Enclosure 2 in No. 1.
Sir J. Jordan to Prince Ch'ing.
Prince CHING.
Your Highness,
Peking, June 8, 1911 ON the 9th January last I had the honour to receive your Highness' reply. to Mr. Max Müller's note of the 17th November, 1910, on the subject of the Pukou- Sinyang Railway,
As this is a matter which required consultation with the Ministry of Communica- tions, and knowing that since the New Year that Ministry has been busily engaged with other matters, I postponed discussing the question further at the time. Now, however, that the Chinese Government have decided on a fixed policy of railway construction throughout the Empire, it is desirable that the method of dealing with all lines for the construction of which agreements with British merchants exist should be decided.
The Ministry of Communications is apparently of opinion that a line from Pakou to Sinyang would have little commercial or strategic value, but as the connecting link between two of the great trunk lines of the Empire, I venture to think that such a railway could not be so unimportant as that Ministry anticipates.
However, if the Chinese Government are seriously averse to the proposed route, the Chinese Central Railways (Limited) are quite prepared to accept any reasonable modification of the alignment contemplated in the original agreement.
I feel sure that your Highness will agree that the present is the proper time for the negotiation of a final agreement in this long outstanding matter, and I shall be glad if your Highness will request the Ministry of Communications to appoint an early date for the discussion of the question with the company's representative, Mr. Mayers.
Awaiting the favour of an early reply, I avail, &c.
J. N. JORDAN.