16
17
444
69. The Delegation discuss various alternatives put before them, and unanimously and strongly recommend the consideration of the construction of the unfinished section between Hankow and Canton (p. 34), thus completing a trunk line from north to south, Peking to Canton, running through the heart of the country. The length of the section is about 280 miles, the estimated cost 5 millions (p. 31).
70. The line is already surveyed and its cost estimated, and there is a standing organisation, the Canton-Hankow Railway Administration, with British members as chief engineer and chief auditor, who would be available for the work, while the financing of the loans would not be difficult to carry out (pp. 30-31).
71. In the opinion of the Delegation this project fulfils the four conditions decidedly better than any other railway scheme in China.
72. On the other hand, the Delegation feel bound to point out that "in view of the present deplorable state of China, it is impossible to be altogether sanguine as to the certainty of large returns from the construction of the missing section of China's great trunk line." They add that satisfactory assurances should be given that the existing sections of the line would be put into a proper state of repair and adequately maintained; that the new line would not be interfered with by militarists; and that its revenue would not be tampered with by unauthorised persone. Due arrangements would have to be made for the control of the line in connection with the existing control of the two other sections (p. 36).
73. The Delegation note that objection may be taken to this proposal by the respective Authorities concerned or by public opinion representing opposed local interests (pp. 35-36).
74. The Delegation further draw attention (p. 36) to the fact that due regard would have to be paid to existing International agreements and to British ob gations in connection with concessions and contracts that still remain uncancelled, and which would have to be satisfactorily settled before the scheme could be approved.
75. The Delegation emphasise that no railway or river conservancy scheme should be definitely adopted until it has been favourably reported upon by impartial experts as being feasible, as a reasonably safe investment for trust funds, and as likely to produce a steady and adequate return on the capital invested (p. 36).
76. In conclusion, the Delegation propose that if it be found that, either in regard to local conditions, or as respects guarantees for the efficient working of the railway, or in regard to International and other obligations, a satisfactory solution cannot be secured, then, as an alternative, the fund in question should be invested in a river conservancy scheme or in gilt-edged securities (p. 36).
The Advisory Committee's views as to the investment of the proposel capital fund have already been expressed in paragraph 46 of this Report. Subject to this, the Committee agree that the linking-up of the trunk line of the Hankow-Canton Railway would be a work of very real benefit to China. If the Trustees eventually decide that they can properly invest funds in connection with railway development, the Committee, so far as they are competent to judge, agree with the Delegation that the completion of the Hankow- Canton Railway would probably be the most suitable and most useful project which could be adopted.
(B.)-Conservancy Schemes (p. 18).
77. The Delegation discuss the various alternative River Conservancy schemes, which have been proposed:
--
(a.) Chihli River Conservancy.
The scheme which appears to them to be practicable and certain to be of great advantage to the districts concerned, and which is based on the repayment of the money advanced, is the Chihli River Conservancy scheme. The Chihli River scheme would, it is estimated, cost £3,200,000. Proposals are made in detail (p. 24) to secure the payment of interest and
the repayment of the money advanced by means of a local surcharge on the custorus duties of the two Chihli ports (Tien-tsin and Chinwangtao). The security for the refund would therefore be the trade of these two ports, and the refund would be paid direct to the Board of Trustees. The levying of the surcharge might, however, require the consent of the Treaty Powers.
As regards this scheme, a Commission is already in being, created in 1917, for the improvement of the river system. It is composed of Chinese and foreign experts, and the Treasurer is one of the British members. The President is ex-Premier Hsiung Hai-ling, and there is already available a plan and estimate drawn up by Mr. F. C. Rose, the Chief Engineer. Considerable preliminary work has already been done, but without substantial aid from the Indemnity Fund or from elsewhere, the undertaking must be indefinitely postponed.
In the opinion of the Delegation, the Chihli Conservancy scheme appears to be founded on a sound basis, and to provide sufficient security to meet the interest and the ultimate repayment of the loan.
(b.) Huai River Conservancy,
As regards the Iluai River Conservancy scheme, the proposed works are estimated to cost two millions, and taxes on the reclaimed lands and other revenue would, it is suggested, be available for the repayment of the loan.
(i.) Subject to the considerations set forth in paragraph 46, the Advisory Committee, while agreeing with the Delegation as to the prior importance of railway as compared with conservancy projects, agree also as to the value to China of well-considered schemes of river conservancy.
(ii) It would undoubtedly be greatly to the benefit of the Chinese people if effective measures could be taken to reduce the possibilities of the destructive floods that so often now take place through the overflowing of the rivers in various parts of China. The flooding covers very large areas, involves thousands of square miles, leads to great loss of life, to famine, starvation and disasters. The flood water often remains on the land for two or three years before it finally drains away, and during that time no cultivation can take place.
(iii) In the view of the Advisory Committee, before the Board of Trustees decides upon either of the two schemes specially referred to, viz, the Chilli River Conservancy scheme and the Huai River scheme, impartial experts should be engaged to examine carefully their respective merits, both as regards area and population to be benefited by such schemes, the preliminary work already undertaken, and the nature of the guarantees that would be forthcoming in order to secure the payment of the interest on the loan, and its repayment.
(iv) The Advisory Committee would suggest that both schemes might be undertaken if it is, in the opinion of experts, financially possible, or if funds from other sources could be secured to make up the deficit.
In this connection the Committee desire to express their regret that, owing to political difficulties, the Delegation were unable to visit South China. In their opinion a due proportion of the funds should be applied to purposes beneficial to Kwangtung Province, and if reproductive work, such as the Chilli River Conservancy, is adopted for North China, a substantial investment should be made for the benefit of South China, under similar conditions, and the local authorities in Kwangtung Province should be consulted in the matter.
78. The Advisory Committee received a very large number of communications and suggestions from representative Bodies and individuals with reference to the distribution of the funds at their disposal. These communications were carefully tabulated, were studied by the Advisory Committee and by the Delegation, and have been taken into consideration in coming to the conclusions embodied in their Reports. The Advisory Committee desire to express their obligation and thanks for the assistance thus rendered to them.
[15217]
D
14587