2
within the province of the consortium, they could take over the work on the Yuet-Han line later.
I said I would report to you what he had said and ask for your instructions. Although I have perused the correspondence covering the negotiations for the constitution of the new consortium, which was forwarded to me by His Majesty's consul-general at Shanghai, I am not quite clear as to whether Mr. Lee's contention that purely provincial, as opposed to national, enterprises do not fall within its scope is correct; but the fact remains that these people here do not recognise the acts of the Peking Government, and if we decline to assist them they may have recourse to other Powers-i.e., Japanese, French or American. I believe that Messrs. Loxley and Co., who, I understand from the Colonial Secretary at Hong Kong, are very keen and enterprising people, would readily undertake the work, and I have the honour to request your instructions as to whether I am authorised to broach the matter to them or any other British firm.
I should be glad if you would be so good as to telegraph me your instructions. I am forwarding copy of this despatch to the Governor of Hong Kong.
(1.) Canton and Chengtu line. Start from Samshni,
Shiuhing,
Wachow,
Liuchow,
Kweiyang,
3
Tsunyi, Chungking. Anyo, Kienchow, Chengtu.
To connect to Canton-Samshui line, Shapao and Burma line, Kwangsi and Szechuan and Hankow lines. Length, about 2,700) Z (Chinese).
(2) Shapao and Burma line.
Start from Shapao,
Changtek,
Shenchow,
Yuanchow,
Chanyuen, Kweiyang,
Singyi,
Kunning (Yunnan-fu),
Tanyung,
Tali, Tengyueh, Burma.
To connect Burma Railway. Length, about 3,500 U (Chinese).
Enclosure 2 in No. 1.
I have, &c.
HERBERT GOFFE.
(3.) Canton and Hankow line.
Start from Canton,
Shuichow,
Lokchong,
(No. 102.) Sir,
Consul-General Goffe to Mr. Clive.
Canton, November 18, 1920. WITH reference to my despatch No. 100 of the 16th instant, I have the honour to transmit berewith copy of Mr. Paget's railway contract, which has been kindly furnished me by Frank Lee, Commissioner of Foreign Affairs.
I am forwarding a copy to the Governor of Hong Kong.
I have, &c.
HERBERT GOFFE,
Ichang, Lauyuen,
Leiyang,
Hengehow,
Changsha,
Yochow,
Wuchang.
To connect Kwangtung-Chengtu line, Kwangtung and (Ningpo) Yungchow line, Shiuchow and Kanchow line, Chuchow and Yamchow line, Ningpo and Siangtan line. Length, about 2,000 li (Chinese).
(4.) Shiuchow and Kanchow line.
Start from Shiuchow,
Nanyung, Nanan,
Kauchow, Kian, Nanchang.
Enclosure 3 in No. 1.
Copy of Railway Contract between Messrs. Paget and the Director-General of Railways of Eight Chinese Provinces.
day of March, in the 9th year of the Republic of China and the year 1920 A.D. by and between his Excellency Tsen Chun Hsuan, director-general of railways of eight provinces, namely, Yunnan, Kweichow, Szechuan, Shenei, Kwangtung, Kwangsi, Hunan and Fukien, and Charles S. Paget, Esq., of Messrs. Paget and Liang, civil engineers, Canton, China.
MEMORANDUM OF. ÁGREEMENT entered into this the
WHEREAS his Excellency Ts'en Chun Hsuan, being desirous of improving the industrial and productive works and promoting the general welfare of the inhabitants of the Republic of China, being duly authorised by the Administrative Council of the Military Government of South China, proposes to obtain a loan from the American engineer, Charles S. Paget, for the purpose of constructing the following railway lines. dollars, United States currency, more This loan will be to the amount of
or less, as may be determined in the final agreement.
Both parties hereby agree to the following terms :—
1. This loan is for the purpose of investigating, surveying, estimating, constructing and equipping the undermentioned railway lines in the provinces of--
Kwangtung,
Yunnan,
Szechuan,
Hunan,
in the Republic of China.
Kwangsi, Kweichow, Fukien,
Sheusi,
To connect Ningpo-Singtan line, Nanning-Chumchow line. Length, about 1,110 (Chinese).
(5.) Canton and Ningpo line. Start from Canton,
Tsengshin,
Weichow,
Chaochow, Chaoan,
Changchow,
Foochow,
Wenchow,
Taichow,
Ningpo.
To connect Shanghai, Hangchow and Ningpo line. Length, about 2,500 li (Chinese).
(6) Pingnam and Langchow line.
Start from Pingnam,
Kweilisien,
Nanning, Lungchow.
To connect Aunan Railway. Length, about 800 Li (Chinese).
The total length being some 12,500 li (Chinese), or 4,200 English miles, more or less, as may be hereafter determined.
2. This loan shall be secured and the following determined in the final agreement: its issue price, the rate of interest, duration of loan, dates of payment to the railway administration of the net proceeds of each advance and method of repayment.
3. The final agreement shall be entered into at the expiration of the preliminary agreement, or at an earlier date if both parties come to such understanding.
4. In consideration of the magnitude of the undertaking, the Administrative Council, through its director, agrees to give Mr. Charles S. Paget eight months from the date of this agreement, in which the necessary investigations and preliminary reconnaissance surveys, estimates, reports and negotiations can be carried out, and they further agree at the end of this period of eight months that if substantial progress has been made toward a favourable consideration of the project Mr. Charles S. Paget shall be given necessary extension of time, if required, to thoroughly complete the negotiations.
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