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PUBLIC RECORD OFFICE, LONDON

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will begin with the section between Canton and Whampoa, and with all work in connection with the opening of the latter as a. treaty port and the construction of the embankment. In the meantime he will telegraph to the various towns in the southern ocean to immediately take up shares in the Canton-Amoy Railway, which is a main line, so that he can continuously work section after section.

We further hear that part of the railway between Amoy and Chiu Chau is considered to be the main line for the Fokien Province, and the funds for its construction are to be raised from the Fokien people, and that the funds for building the Kwong Tung main line between Canton and Chiu Chau are to be raised from the Kwong Tung merchants. The scheme is first to commence work on the section from Canton to Whampoa, and then on those passing through Tsang Shing, Tung Kun, Shek Lung, Pok Lo, Hoi Fung, and Luk Fung, to Chiu Chau and, at the same time, work will be commenced from Amoy to Chiu Chau, where a large railway station shall be built, being a station for the use of both provinces. All districts along which the railway passes, shall also have stations for the convenience of passengers and goods.

(Editor of the "She Man Po":-Railways are closely connected with treaty ports. By this movement, His Excellency Cheung may be said to have caught hold of the very clue. It is hoped that the railway shares will be taken up as eagerly as those of the Canton-Hankow Railway. The only apprehension is that the terms "Official Management" and "Management by Merchants" have not been clearly defined. I write this with great pleasure. I wish to see what the future will be.)

Translation of an Extract from "Wah Tsz Yat Po" of 4th April, 1906. The Survey of the Canton-Whampoa Railway Route completed.

It will be remembered that, some time ago, Viceroy Shum urged His Excellency Cheung Chan-fan (alias ('heung Pat Sz) to expedite the construction of the section of railway between Canton and Whampoa, and asked him to take over the responsi- bility of collecting sufficient funds. When they met in conference they thought that if they could raise a loan there would be no anxiety about funds. Unexpectedly their proposal for raising a foreign loan was recently rejected and condemned by the Board (of Commerce). Not only have they no money to build the railway but they also lack funds to establish the proposed official bank and to carry out the water supply scheme. So, when Cheung Chan-fan came to Canton several days ago, Viceroy Shum impressed upon him that he took no responsibility with regard to the question of funds, and urged him to immediately see about subscriptions so that work might be commenced early. Consequently Cheung hastened back to Chiu Chau to see what he could do. We hear that although the survey of the route has been completed and the estimated cost has been put at between two and three million dollars, the subscriptions for shares which Cheung has already collected is but trifling.

Translation of an Extract from the "Tsun Wan Yat Po" of the 3rd May, 1906. How to construct the Whampoa Railway.

The Board of Commerce has decided to open Whampoa, which is a place situated between Hong Kong and Canton, as a treaty port, the officials and gentry having made an application (to this effect). The railway (which will be laid) between Canton and Whampoa will form the first section of the (proposed) Canton-Amoy line.

We have recently learned that His Excellency Cheung, Lord High Chamber- lain, is working energetically with regard to this matter, the section having been surveyed by an engineer. Cheung is now forming plans for obtaining funds, and proposes to start the construction (of the line) as soon as there is a chance of obtain- ing sufficient funds; but at any rate, work, he says, must commence this year: so he has (therefore) promised to pay the cost of construction (in the first place), the money to be refunded to him when subscribed.

-21671

(Secret.)

MY LORD,

No. 260.

GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN.

(Received June 18, 1906.)

Government House, Hong Kong, May 18, 1906. IN continuation of my secret despatch of the 10th May* on the subject of a Chinese project to connect Canton with Whampoa by a railway, I have the honour to transmit, for your Lordship's information, a copy of a despatch which I have this day addressed to His Britannic Majesty's Chargé d'Affaires at Peking and of the translations of the newspaper articles it enclosed.

I have, &c.,

SIR,

(Secret.)

Enclosure in No. 260.

M. NATHAN,

Governor, &c.

Government House, Hong Kong, May 18, 1906. WITH reference to my secret despatch of the 10th May on the subject of a Chinese project to connect Canton with Whampoa by a railway, I have the honour to acknowledge the receipt of your cypher telegram of the 14th instant in which you stated that you had pointed out to the Wai Wu Pu that the construction of such a line would disregard the preliminary agreement with the British and Chinese Corporation for the Canton-Kowloon line and would be irreconcilable with the under- standing arrived at in Canton by Mr. Bland, the representative of that Corporation.

2. I now transmit, for your information, copies of the "Chung Kwok Yat Po" and "She Man San Po newspapers of the 9th and 12th May, respectively, and translations of articles in these papers dealing with the same subject.

His Britannic Majesty's Chargé d'Affaires,

Peking.

I have, &c.,

M. NATHAN,

Governor.

TRANSLATION of an Extract from the "Chung Kwok Yat Po" of 9th May, 1906. The Advisability of Expediting the Construction of the Canton-Whampoa Railway and the Opening of Whampoa as a Treaty Port. DESPATCH by SHUм, Viceroy of the Two Kwongs, to the PROVINCIAL TREASURER.

A despatch was received some time since from His Excellency Cheung, Lord High Chamberlain and an Official Superintendent of Agricultural, Manufacturing, Railway, and Mineral Matters for the Provinces of Kwongtung and Fokien, to the effect that he has deputed Pun Chiu-lun, a Director of the (Railway) Company and an expectant District Magistrate of Chili, and Cheung Tsz-ming, an expectant Assistant District Magistrate of Kiangsi Province, to join the officers deputed by the Shin Hau Kuk of Kwongtung in the work of again surveying the Canton- Whampoa Railway, that if no obstructions are found, land will be purchased and work commenced, and that, with regard to the opening of Whampoa as a treaty port, His Excellency would carefully discuss the matter and draw up regulations and submit them. Before this despatch was received, a despatch was received from you, the Provincial Treasurer, asking me to send Ting Ping-lan, an expectant Prefect of an Independent Department, to accompany the officers deputed by the (Railway) Company to survey the railway, and a reply had been sent directing that a clear survey and a careful report be made without loss of time, and His Excel- lency Cheung was also communicated with to the same effect.

• No. 259.

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