· ། ༴། ༅༔། ། །
PUBLIC RECORD OFFICE
لبس السياسيا
Reference :-
C.O. 882
6
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
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imported from Great Britain he thought the usual trade commission might be paid to the Corporation as agents, but nothing more..
Mr. Bland stated that on such terms no agreement could be concluded-the proposal amounted to limiting the business of the Corporation to the financing of the loan, and ignored not only the preliminary agreement, but the rights and benefits originally, granted to the Corporation in 1898, viz., the right to construct and equip the railway on behalf of, and for, the Chinese Government. The Directors of the Corporation could not agree to such an essential departure from the Nanking Loan conditions, involving acceptance of terms far less favourable than those in every other railway loan and construction agreement hitherto made by the Imperial Government. The railway, according to the terms of the concession granted, was a joint enter- prise in which the good name and success of the Corporation were directly concerned, to produce results satisfactory to the Chinese Government: in this, as well as in the nomination of an efficient and capable Engineer-in-Chief, the Corporation incurred direct responsibility, and rendered services to the Chinese Government and to the bondholders for which, in common fairness and by established usage, they were properly entitled to commission. The Corporation had consented to the principle that no commission should hereafter be charged on Chinese products locally purchased, but the present proposal was equivalent to cancelling the Corporation's construction rights. The Viceroy's proposals on this subject were based on a fair view of the matter, and it was to be hoped that they would be adhered to. The Viceroy had inserted the clause that, on equal terms, British materials should be used, but the proposal to pay commission on these goods only was in itself equivalent to a premium on non-British competition.
His Excellency Tang Shao-yi cited the Northern Railways precedent as that which should be adopted. Mr. Bland pointed out that no construction rights, but only financial arrangements, were negotiated under that agreement, which dealt with a railway already in existence. In the present case the Chinese Government has granted to the Corporation the right to build and equip the railway under certain conditions, and unless that right is ignored, the corresponding right to commission is incontestable. The 5 per cent. charged by the Corporation should not be considered only as commission on materials, but as remuneration for the Corpora- tion's responsibility and services extending over the whole period of the Loan Agreement, and involving the maintenance of an establishment in China.
The matter was left for further discussion, and a meeting fixed for Wednesday next, the 29th August, at 3 p.m.
36733
No. 296.
THE EARL OF ELGIN to GOVERNOR SIR M. NATHAN. (Sent 2.15 p.m., October 8, 1906.)'
TELEGRAM.
[Copy to Crown Agents, October 11, 1906. L.F.] [Answered by No. 308.]
Referring to your telegram of September 11,* Consulting Engineers advise no action being taken pending receipt of report for which they have telegraphed Eves.
38054
SIR,
No. 297.
FOREIGN OFFICE to COLONIAL OFFICE.
(Received October 16, 1906.)
[Copy to Governor, October 19, 1906. Secret. L.F.]
Foreign Office, October 15, 1906. On receipt of your letter (33764/1906), of the 20th ultimo, † enclosing copies of despatches from the Governor of Hong Kong with regard to railways in China, His Majesty's Minister at Berne was requested to obtain particulars with regard to
• No. 283.
↑ No. 288.
Nos. 280, 281 and 282.
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the arrangements in force between the Swiss and Italian Railway Administrations for working the railways between Switzerland and Italy, as desired by Sir M. Nathan, I am directed by Secretary Sir Edward Grey to transmit herewith a copy of a reply from Sir G. Bonham in which he encloses two copies of "Traités et Conven- tions" relative to the Simplon Railway containing the desired information.
SIR,
(No. 56.)
F. A. CAMPBELL.
I am, &c.,
Enclosure in No. 297.
Berne, October 5, 1906.
I HAVE the honour to acknowledge the receipt of your despatch, No. 15, of the 25th ultimo requesting me to obtain particulars required by the Govern- ment of Hong Kong relative to the arrangements in force between the Swiss and Italian Railway Administrations for working railways between Switzerland and Italy.
On consulting the competent authorities, I am informed that full information on the subject will be found in a volume comprising the Treaties and Conventions between Switzerland and Italy for the construction and working of the Simplon Railway.
I have accordingly the honour to forward two copies of the volume referred to for transmission to Sir M. Nathan.
The Right Honourable
Sir Edward Grey, Bart.,
&c., &c., &c.
38925
No. 298.
I have, &c.,
G. F. BONHAM.
GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN. (Received October 22, 1906.)
(Confidential.)
MY LORD,
Government House, Hong Kong, September 15, 1906. I HAVE the honour to confirm my telegram of the 11th instant,* in which I stated that I was not satisfied with the progress that had been made on the construc- tion of the British section of the Canton-Kowloon Railway since the 1st of April last and enquired whether the Consulting Engineers proposed to make an inspection of the work this year.
2. I based my opinion on eight visits paid to the works in company with Mr. Eves, on the progress reports he has submitted to me every week since the 11th May, and on information furnished me at weekly meetings with him, at most of which Mr. Chatham, Director of Public Works in the Colony, was present.
3. Mr. Eves arrived on the 24th of March. Before that date the centre line of the railway had been marked out on the ground and some earthwork had been executed in the northern section-about 74 miles long from Tai Po to Lo Fu Ferry. This work, which had been started on the 9th December, under the supervision of an Assistant Engineer of the Public Works Department, who had been employed by Mr. Bruce on the survey, was being carried out by seven petty contractors-Elders in the new territories. It was suspended by Mr. Eves at the end of April, by which date the progress made was, according to Mr. Carpenter's final report, as follows:-
13,650 linear feet of embankinent completed to formation level.
3,000 linear feet of embankment partially completed.
900 linear feet of cutting completed for double line. 400 linear feet of cutting partly completed. 2,450 linear feet of stream diversion carried out. 1,700 linear feet of catchwater drain formed.
• No. 283.
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