PUBLIC RECORD OFFICE
Reference :-
TIFIC.O. 882
سسساسس
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO |
6 PUBLIC RECORD OFFICE, LONDON
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sections of the railway will take to build, and the difficulty we may encounter in getting the Chinese to agree to the proposal in Clause 16 of the Schedule providing that the basis for dividing the net profits shall be the actual cost, in which the cost of land and commissions shall not be reckoned. I think they should know before- hand what are likely to be the stumbling-blocks in the way of negotiations. Have you any objection to giving me a copy of the estimate you showed me of what amount would be really available for construction out of a nominal loan of £1,350,000 and the rough estimate for the British section?
ERNEST SATOW.
Yours, &c.,
Enclosure 8 in No. 91.
DEAR SIR ERNEST SATOW,
E-Wo, Peking, April 17, 1905. YOUR note which was addressed in error to the Hotel Wagons-Lits has just reached me.
I am living at our new bungalow in Legation Street, which has been built on the site of the one destroyed in 1900. I merely mention this in case you may hereafter have occasion to communicate with me on railway matters and to save any possible delay.
}
In accordance with your request I enclose a copy of the rough
[See Sub-Enclosure 2 in No. 93.]
Yours, &c.,
C. H. Ross.
The British and Chinese Corporation, Limited. Rough Pro-forma Estimate of Amount of Loan required for Canton-Kowloon Railway (Chinese Section).
[See Sul-Enclosure 1 in No. 93.]
in the event of the principal loan being insufficient.
19604
(Confidential.)
No. 92.
FOREIGN OFFICE to COLONIAL OFFICE. (Received June 7, 1905.)
The Under-Secretary of State for Foreign Affairs presents his compliments to the Under-Secretary of State for the Colonies and, by direction of the Secretary of State, transmits herewith copy of the under-mentioned paper relative to China.
Foreign Office,
June 6, 1905.
Name and Date.
DESCRIPTION OF ENCLOSURES.
Hong Kong Branch of China Association to China
Association, Hong Kong, April 21, 1905.
British and Chinese Corporation to the Foreign
Office, London, May 22, 1905.*
Telegram to Sir E. Satow, Foreign Office, May 25,
1905.†
Subject.
American attempt to secure a deep water port at
Whampon.
• Enclosure 3 in No. 91.
† Enclosure in No. 89.
DEAR SIR,
119
Enclosure 1 in No. 92.
HONG KONG BRANCH OF CHINA ASSOCIATION to CHINA ASSOCIATION.
(Communicated May 23.)
Hong Kong, April 21, 1905. I HAVE to acknowledge the receipt of the following telegram received through the Hong Kong and Shanghae Bank on the 13th instant:-
64
'With reference to your telegram of the 31st, have conferred with_British Government, but do not attach much importance to rumours. Railway negotiations are in progress, Peking."
In my letter of the 3rd instant, confirming our telegram of the 31st ultimo, assured you that we had the best authority for the statement therein made. It was no mere rumour that led us to communicate in such urgent terms. Rumour had been active, but until something definite became known to us we were unwilling to move in the matter. Not that many of the recent rumours were without foundation. On the contrary, their truth is now manifest in many ways. The fact is that for some time past evidence has been accumulating which tends to show that a serious move- ment is on foot having for its object the opening of a port to serve eventually as the terminus of the Hankow-Canton line. The idea is held to be impracticable by many whose opinion is entitled to respect, and who rely upon the natural advantages possessed by the harbour of Hong Kong to defeat all efforts to challenge the supre- macy of this port. We hope that this optimistic opinion is warranted by all the facts of the case, but there are certain facts which ought not to be lightly regarded. and which are yet seldom referred to. We have nothing to oppose to the view that as regards the larger ocean-going vessels there is nothing to be feared. The new Pacific liners can never go to Whampoa, nor can the German mail-steamers; no steamers, in fact, drawing anything over 26 feet. But with respect to steamers drawing no more than this, it is unsafe to assume that no rivalry can be set up. A scheme for dredging a channel through the bar below Whampoa-the so-called second bar "has recently been put forward, and is receiving the favourable con- sideration of the Chinese authorities. It is proposed to devote a large sum of money to this object, of which a considerable part will be set aside from the Imperial Maritime Customs revenue. The proposed dredging operations would only be re- quired to cut a channel some quarter of a mile long. If successful, ships drawing as much as 26 feet could get up to Whampoa at spring tides, and as much as 24 feet at neap tides. In referring to the proposed opposition port we have described it as "at or near Whampoa." The avidity with which land in the vicinity is being bought up shows that the Chinese are going to try and make it there. A group of influential Chinese are interesting themselves in the project, and we have good reason to believe that they are receiving every encouragement from the Chinese authorities. It should not be forgotten that the latter view the existing Kowloon frontier arrangement as a serious handicap to the effective safeguarding of the Kuangtung revenue. They have never ceased to resent the action of the British Government in taking over the whole of the waters of Deep Bay and Mirs Bay, and they regard the Hong Kong Government as the protector of the local smuggling activities, which, they believe, are a source of considerable loss to the Customs revenue. They are apt, therefore, from the Viceroy downwards, to view this Colony with no friendly eye, and the prospect of drawing away our trade, or any part of it, to their own shores is one which can hardly fail to appeal to them most powerfully. The group of influential Chinese already referred to appear to be led by the man who is the guiding spirit of the Swatow to Chao-chou-fu Railway, at present in course of construction. A similar scheme for a Chinese-subscribed and Japanese-built railway from Canton to Whampoa has been under consideration for some time past.
Hitherto all purely Chinese railway proposals, private or official, have come to nothing, and it would have been safe formerly to assume an attitude of indifference towards news of the kind. Latterly, however, the position has changed. The appearance on the scene of the Japanese engineer, working in combination with the Chinese capitalist, has created an entirely new set of circumstances. As you are doubtless aware, the capital to build the line from Swatow to Chao-chou-fu has been mainly subscribed by Chinese in the Straits and in Java. Japanese engineers are constructing the line, and we understand that some 200 Japanese all told are em- ployed upon it in various capacities.