10
ditions; these conditions (Article 17 of the Supplemental Agreement) lay down that the rights of the agreement are inalienable to "other nations or people of other nationality"; the original stockholders being all American citizens (half the original stock was offered to the Hong Kong Shanghai Banking Corporation, but was refused because there was no prospect of the British Government's guarantee).
The "rights" of the agreement amounted practically to control of the railway under American finance and its construction under an American Engineer.
The Belgians came to the front in this matter when their agent, Mr. Whittier, an American (who, it is to be noted, is also a Russian Agent), secretly bought out in Washington 33 of the original stockholders for the Belgians; at that time the prospects of the railway did not look promising, and these American stockholders were glad to get a good offer for their interests in the concert. The Belgians possess- ing a majority on the Administrating Board, did not, however, show their hand till some two months ago, during which interval the survey and construction of the line under American control proceeded in a leisurely manner. The Belgian interest finally getting impatient proceeded to agitate for the appointment of a Belgian con- structing Engineer, for financial control from Belgium, and for other measures cal- culated to secure to them the practical control of the line, and even went so far as to advocate the handing over to them of the Northern Section (Hankow to a point in Hunan, undetermined).
Hereat certain of the remaining American stockholders stood their ground, and matters reached an impasse the Belgians thinking to improve matters by strenuous attempts to buy out the whole of the American interest.
At this point Sheng, Director of Chinese Railways, comes forward with Article 17 of the Supplemental Agreement, and has but three days ago (January 20th, 1904), telegraphed to Washington that either the "people of other nationality" must be got rid of in the sphere of claimants to these contract "rights," or that he will cancel the contract the point being, that previously, while the Russians could bring influence to bear on the Chinese in the Belgian interest, Sheng, and the Chinese Ambassador at Washington could afford to evade the letter of the Contract sanctioned by Imperial Edict, but now that Russia is likely to be occupied elsewhere for some time, leaving the Belgians unbacked, Sheng, for his own sake, must stand by, the terms of the contract, and see that the active control of the railway remains with the Americans. This happens to be awkward, as the Americans are not in a position to raise money for the continuation of the line, so that probably the contract will be declared void, and the bonds of the original stock redeemed. As matters were going the Belgians (working for the Russians, through the King of the Belgians, who had financed their Agents), would probably have got control of the whole Hankow-Canton Concession. A fairly plain indication of this is forthcoming in the fact that six Belgian Officers "specially selected by the King of the Belgians" for work on the Canton-Hankow Concession, arrive in Shanghai within the next few days. It appears, therefore, from the situation that here is the very opportunity required if the British Government desire to frustrate intrigues hostile to their interests in such an important region as is covered by this Railway Concession; and it would seem that a strong recommendation to the Government to intervene with the American Govern- ment in an undertaking to run the line as a joint national concern, would be produc- tive of the best results.
10378
11
development of Hankow has a most important bearing on the question of linking that city with Canton by railway. It follows that it also touches the question of connect- ing this Colony with Canton by railway.
2. The future prosperity of this Colony will depend in great measure on this double connection, and on the question of what nation has the controlling voice in the management of those railways.
3. I venture once more to suggest that His Majesty's Government should secure a substantial interest in the Hankow-Canton Railway, and should take steps to hasten the construction of the railway from Hong Kong to Canton.
I have, &c.,
F. H. MAY,
Officer Administering the Government.
Enclosure in No. 8.
EXTRACT from Report by Mr. C. L. Bland to Major-General Hatton, dated 7th February, 1904.
"The enormous extent of country in direct communication with Hankow and the position of that city nearly in the centre of China; its position on the Yangtse high-road, with access by ocean-going steamers for one-half of the year; the rapid growth of the foreign settlement there, and of trade intercourse with the Chinese; the existence of manufacturing industries using quantities of modern imported machinery and the tremendously increased facilities for traffic (especially in raw China-grown material for their factories) about to be afforded by the railway to the Yellow River and Peking, all combine to promise a most rapid development for Hankow. When the Chinese merchants who now congregate to Shanghai from the eight provinces touching the Yangtze waters to find there the representatives of all the European firms in the Far East, when they find the same firms beginning to be represented at Hankow, they certainly will become the central market and centre of affairs in China. From the British point of view it is of first moment that we should have principal interests in the communications both by shipping and rail, since the key to the large import markets of the future, and of the export from eight provinces will be in the hands of the nation controlling the traffic. This point bears strongly on any question concerning the present shipping and railway situation, such as the Hankow-Canton Railway and the expediency or otherwise of the projected railways across Anhui and into Ssu-chuan."
12409
(Paraphrase.)
No. 9.
ACTING GOVERNOR MAY to MR. LYTTELTON. (Received 8.40 a.m., April 8, 1904.) TELEGRAM.
My confidential despatch of 11th March.* General Whittier, New York Agent of Belgium Syndicate, which holds two-thirds of shares in American Chinese Develop- ment Company, has succeeded Mr. Parsons as the President of that Company. Mr. Gray, American Engineer hitherto managing the construction of line, arrives at New York to-day, to answer charges trumped up against him by Belgian interest. The Belgians hope to oust him, and get the controlling voice in the construction and management of the line. I urge that this aim be frustrated.
(Confidential.)
No. 8.
ACTING GOVERNOR MAY to MR. LYTTELTON. (Received March 23, 1904.)
SIR,
Government House, Hong Kong, February 18, 1904. IN continuation of my confidential despatch of the 30th ultimo,* I have the honour to inform you that I have recently had my attention drawn to the great development that is taking place at the Treaty Port of Hankow. I enclose, for your perusal, copy of an extract from a report of one who has recently visited that Port.
I entirely concur in the opinion expressed by the writer that the commercial
• No. 7.
12680
No. 10.
(Confidential.)
SIR,
ACTING GOVERNOR MAY to MR. LYTTELTON. (Received April 9, 1904.)
Government House, Hong Kong, March 9, 1904. WITH reference to my despatch marked "confidential," of the 15th of January
18885
* No. 11.
B↑
།། ། ། །
PUBLIC RECORD OFFICE
Reference :-
C.O. 882
6 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO