PUBLIC RECORD OFFICE
Reference :-
TLC.O. 882
9
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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interests. In that case we may be sure that what is feared now would certainly come to pass, and a seaward terminus found, and port created at some point below the Bogue or some place on the coast to which ocean-going vessels could resort. The bare possibility of such a contingency is sufficient to arouse the liveliest anxiety in the minds of all persons interested in the welfare and prosperity of this Colony, not alone on account of individual losses, which would ensue from the enormous depreciation of property and investments, but also because of the severe blow it would inflict on British influence and prestige through the whole of China. This possible calamity- it would be nothing short of a calamity-should, the Committee think, be provided against at once and for all time. They have, therefore, come to Your Excellency this afternoon with certain concrete suggestions which they trust will meet your approval, and if accepted by the Colonial Office may remove the black cloud which now hangs over Hong Kong. If the transfer of the Canton-Hankow railway to the Belgians cannot be averted, it may be advisable to negotiate with that Syndicate for a junction with their line to ensure Kowloon being made the terminus of the trunk line, and failing the accomplishment of this point every effort should be made to secure all railway rights on both sides of the river south of Canton. In the opinion of the Com- mittee, if the British and Chinese Corporation are unable to promptly utilise the concession they hold, they should be asked to surrender it either to a Company specially formed for the purpose over which the Colonial Government could exercise some control in exchange for the guarantee of a certain interest on the cost of con- struction, or to the Colonial Government itself to make the line. The cost of the railway has been estimated at one million and a half sterling, and the annual cost to the Colony of a guarantee of, say. 4 per cent. on this amount, at, say, an exchange of 1s. 8d. would be only $720,000 per annum, and it may fairly be assumed that the earnings of the line would be more than sufficient to pay running expenses at once if they did not immediately ensure a return of interest on capital. This would form a justifiable risk in the nature of an insurance against an opposition port being created; it would moreover, lead to a certain and important development of the Kowloon hinterland; it would give an impetus to the industries that have sprung up on the peninsula; and it would not fail to stimulate the growth of the Colony as a whole. Even supposing that the worst should happen and the line only pay working expenses, the advantages to the Colony would fully compensate for the outlay; while, as a contribution towards upholding British prestige in the Far East the Imperial Govern- ment might, perhaps, be induced to make some concession in the annual military con- tribution until the railway returned at least 4 per cent. on its cost. The Committee have been guided to this course by the facts collected by Mr. Stewart, and also by the apparent disinclination shown by the British and Chinese Corporation, even after the recent expressions of public opinion on their supineness, to make any movement towards commencing operations. The latest advices from home announce that it has been decided to indefinitely postpone the loan for the Shanghai-Nanking Rai)- way a statement not calculated to encourage us to hope that any representation we can make will spur the concessionaires into action. The Committee, therefore, beg that Your Excellency will be good enough to lay the following recommendations before the Right Honourable the Secretary of State, and they hope that you will see your way to lend to them your hearty support :-
1. That the British and Chinese Corporation be invited to state whether they intend to proceed with the construction of the Kowloon-Canton Rail- way, and if so, to name a definite period when it will be actually commenced.
2. In the event of the reply being unsatisfactory, the Corporation should be asked to surrender the concession to another Company or to the Colonial Government without other compensation than their re-im- bursement of out-of-pocket expenses.
3. That the Imperial Government be requested to sanction the pledging of the Colony's credit to guarantee 4 per cent. interest on the cost of construc- tion of the Kowloon-Canton Railway for a period of years.
4. That, in the event of the Imperial Government consenting to the Colony giving the above named guarantee, tenders for the construction of the railway be invited forthwith.
In conclusion. Your Excellency, the Committee would only point out that, while fully aware that what they are asking is a departure from the general policy of the
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Imperial Government, this is in their opinion one of those cases which most amply justify it. The French in Indo-China have not only built railways at the cost of the French taxpayer, but they have saddled that Colony's revenue with a guarantee for their projected railway in Yunnan. As British capital evidently will not come forward for such purposes without a guarantee, and the welfare of this Colony is at stake, the Committee are encouraged to hope that the Imperial Government will not withhold its consent to their prayer,
The Honourable GERSHOM STEWART said:-Your Excellency, I have very much pleasure in supporting the remarks in the Address which Mr. Wilcox has just read. As you are aware I occupied my time when I was in the North in making all the enquiries I could about what was going on in regard to railways. I regret to say that all I could find in the way of new construction was in foreign hands. It was at my suggestion that the Committee of the China Association asked Your Excellency to grant the interview you have kindly given us to-day. We all know that the question of this railway has been one of public discussion in the press and elsewhere for a considerable time past. It was with a view of bringing it down from the atmosphere of academic discussion into the sphere of practical politics that I urged the Com- mittee of the Association to ask Your Excellency to give us this interview. We have been assured by the concessionaires from time to time that they have relaxed no efforts to secure the completion of this railway, during the five and a half years they have held the concession. It might be reasonably supposed from that, that the British public did not look upon the enterprise with favour. As far as we know— and we know a great deal-the British public have never had a chance of giving their opinion upon it. It may be that those who wish to float the Company fear that the public are shy about China owing to the Boxer troubles, and the present war, or it may be that they think the public averse to putting their money into a silver country. Whatever the reason the fact remains that a big financial body like the British and Chinese Corporation have utterly failed to utilise the concession they have held and it is unreasonable to suppose that this Colony will sit still and run the risk of tremendous injury without endeavouring to do something to protect itself. We have been told that as soon as the Shanghai-Nanking agreement was signed, the Canton-Kowloon agreement would be on all fours, and the work would proceed immediately. I am informed that the Shanghai-Nanking agreement was signed last July. We are now almost a year after that and absolutely as far off anything being done. I would be averse entirely to urging the Colony to pledge its revenue in the spirit of adventure in any enterprise however hopeful the result might look but this is a matter of exceptional interest entirely. I would consider any expense the Colony might go to as advisable as any outlay on water supply or for sanitary pur- poses. It is necessary to protect ourselves. As any individual man who is attacked by his enemies will gladly accept a blow on a non-vital part if it saves him a blow on a vital part so, I think, we ought to be willing to undertake some risk in laying out a portion of our revenue so that we may save the whole. I think it would be perhaps fair, if Your Excellency agrees with the prayer in our Address, to point out that this Colony annually subscribes a very substantial sum for Imperial purposes. Kiautchou has cost Germany 3,500,000 pounds, and the French have spent millions in Tonkin, and they are allowing that Colony to increase its liabilities by guaranteeing interest on their railway into Yunnan. The case as put before you is put in the worst light, because it is perfectly likely that if the Colony is allowed to take a hand in this enterprise people might offer to build the railway at a less guarantee than we have asked for. It might be also well to remember that at this present moment there is a dark cloud hanging over us in the possibilities that might fall upon us owing to the activity of those opposed to British interests. It seems to me that in this South African business we have the possibility of a very large increase to our revenue if, as I think feasible, it is arranged that Hong Kong is the only place from which opium is supplied to South Africa. This proposition is not put forward by us as the best possible. If any better one came forward this Association would give it its entire and hearty support. What we would like to see Inid down is the broad principle that for the preservation of this Colony and be safeguarding of British interest in Southern China, the Colony be empowered if necessary to pledge its credit to ensure the making of this railway and securing the terminus in Kowloon. His Excellency the OFFICER ADMINISTERING THE GOVERNMENT said:-Gentlemen, I have had very much pleasure in receiving you here this afternoon, and listening