PUBLIC

RECORD OFFICE

Reference :-

TREENIC.O. 882

6

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

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that a foreign engineer has been engaged, and will reach Canton shortly, and that the contract for the material is to be given to a foreign firm.

I should remind Your Highness that in a note of August 4th I had the honour to address you on the subject of similar action taken by the Board of Commerce in regard to railways in Chekiang and Kiangsu, which action contravened the terms of agreements concluded by the Chinese Government with the British and Chinese Corporation. The Board of Commerce having openly supported, and obtained the Imperial sanction to, proposals violating solemn contracts with a British firm in respect of railway undertakings in Kiangsu and Chekiang, there is all the more reason to credit the information which has reached me through the Governor of Hong Kong and His Majesty's Consul-General in regard to the Canton-Whampoa Scheme.

In view of the negotiations which are about to commence between the Wai Wu Pu and the Agent of the British and Chinese Corporation, Mr. Bland, in regard to the Canton-Kowloon Railway, it is of the first importance that there should be no misunderstanding in this matter. Any scheme to construct a railway from Canton to Whampoa, apart from the project which will be the subject of those negotiations, would be considered by His Majesty's Government to be a breach of the Corporation's preliminary agreement, and I am instructed by Sir E. Grey to represent to the Chinese Government that if such a scheme is seriously entertained the Viceroy should at once be instructed to abandon it.

Again requesting the favour of an early reply, I avail myself of this opportunity. to renew to Your Highness the assurance of my highest consideration.

His Imperial Highness

Prince Ching, &c., &c., &c.

YOUR HIGHNESS,

L. D CARNEGIE

September 5, 1906.

I HAVE the honour to remind Your Highness that I have not yet received replies to my notes of May 12th, July 16th, and August 13th, on the subject of the project to build a railway from Canton to Whampoa. Since my last note was written His Maje 'y's Consul-General has telegraphed stating that the Viceroy of Canton has isued a proclamation to the effect that a survey of the first section from Canton to Whampoa has been ordered, and that landowners must sell without extortion.

I have to refer Your Highness to the contents of my note of August 13th, and to repeat that any scheme to construct a railway from Canton to Whampoa, apart from the Canton-Kowloon project which is now under negotiation by the Wai Wu Pu with a representative of the British and Chinese Corporation, will be considered by His Majesty's Government to be a breach of the Corporation's Preliminary Agree- ment of March 28th, 1899. In accordance with the instructions of Sir Edward Grey I have already represented to the Chinese Government that if such a scheme is seriously entertained the Viceroy should at once be directed to abandon it

The matter is one of importance, and I have again the honour to request the favour of an early reply, for the information of His Majesty's Government.

I avail myself of this opportunity to renew to Your Highness the assurance of my highest consideration.

His Imperial Highness,

39719

SIR,

Prince Ch'ing, &c., &c., &c.

No. 307.

LANCELOT D. CARNEGIE.

THE EARL OF ELGIN to GOVERNOR SIR M. NATHAN. [Copy to Foreign Office, November 8, 1906. L.F.]

(Confidential.)

Downing Street, November 2, 1906.

I HAVE the honour to acknowledge the receipt of your telegrams of the 26th and 30th October,* respecting the negotiations for the loan agreement in connexion with the Canton-Kowloon Railway.

It is evident from your former telegram that the arrangement, in its present

Nos. 301 and 303.

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shape, is not entirely satisfactory from the point of view of the Hong Kong Govern- ment, but, in the absence of the text of the agreement, it is impossible for me to express an opinion as to the desirability of your withholding your assent to it. In the circumstances I can only rely on the judgment of His Majesty's Minister, and, as he is of opinion that no more favourable conditions can be secured, I have informed you by my telegram of yesterday's date* that I am prepared to leave the matter to your discretion.

I have, &c.,

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No. 308.

GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN. (Received November 7, 1906.)

(Confidential.)

MY LORD,

ELGIN.

Government House, Hong Kong, October 9, 1906. REFERRING to your Lordship's telegram of the 8th instant informing me that the Consulting Engineers advised that no action should be taken in the matter of the slow progress made on the Hong Kong section of the Canton-Kowloon Railway pending the receipt of a report for which they had telegraphed to the Chief Resident Engineer, and in continuation of my confidential despatch of the 15th September‡ on the same subject, I have the honour to enclose a copy of the report submitted by Mr. Eves to Sir John Wolfe Barry and Partners.

2. In the ninth paragraph of this report Mr. Eves states that I have criticised his work very unfavourably at times. I doubt whether the questions I have put to him, when visiting the works or discussing his progress reports at our weekly meetings, can properly be called unfavourable criticisms. I certainly asked him whether he thought time would be saved by his plan of sinking a shaft of small -depth close to the north tunnel face (which shaft has since been destroyed by the typhoon and abandoned in favour of an open cutting) and I may have asked a similar question with regard to the more important shaft at the south tunnel face. I have also asked questions as to the progress of the metre gauge railway, to which Mr. Eves attributed importance as enabling plant to be delivered at the south tunnel face, and received the same explanation as he has sent to the Consulting Engineers. The bridges to which he refers as a subject of anxiety to me are probably those on to Tai Po-ho Fu Ferry section, which I remember having remarked would require to be started early if that section was to be completed during the cold weather that is now setting in. I also remember having on several occasions insisted on the progress on the tunnel being the guiding factor in securing the early completion of the whole work, a proposition with which Mr. Eves cordially agreed. I do not con- sider that my questions and remarks have been of the nature of criticism, but if I have allowed it to appear that I have not been satisfied with the rate of progress of the work as a whole, I have only disclosed what are actually my feelings in the matter. I have carefully refrained from issuing to Mr. Eves any directions as to the conduct of the work in his charge, and from deciding any points other than those which he has specifically referred for my decision, recognising his complete responsi- bility to the Consulting Engineers in the matter.

3. My own duty to report to your Lordship, if I am not satisfied that the work is progressing satisfactorily, is equally clear to me, and is especially impressed on me by my recollection of the great delay and large outlay that were involved by an unsatisfactory start having been made on the Gold Coast Government Railway when that undertaking was first put in hand in the early part of 1898.

4. I enclose a copy of a minute by the Director of Public Works, to whom I referred the Chief Resident Engineer's report to the Consulting Engineers for his remarks. In these remarks I generally concur.

5. I also enclose a copy of the last progress report, dated the 6th instant, rendered to me by Mr. Eves.

I have, &c..

M. NATHAN,

Governor.

• No. 305.

† No. 296.

‡ No. 298.

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