263

I have, &c.,

JAMES SCOTT.

262

The motives underlying the agitation are no doubt mixed. The war in Manchuria has brought home to the Chinese Government the danger of granting railway concessions to foreign Powers, as in Shantung, Yunnan, and Manchuria, and they are now moving to the other extreme and opposing any foreign control, technical or otherwise, which might conceivably be stretched to interfere with native jurisdiction. On the other hand, the profits of the northern railways, which have been magnified lately in the Chinese press, have served as an object lesson of another sort to show how advantageous it is to build railways for themselves, even if they have to borrow foreign capital for the purpose.

A copy of this despatch will be sent to the Governor of Hong Kong.

I have, &c.,

ERNEST SATOW.

(No. 48.)

SIR,

(3.)

Consul-General SCOTT to Sir E. SATOW.

Canton, August 24, 1905. In accordance with the instructions conveyed in your telegram, No. 13, of the 7th August, I placed myself in communication with His Excellency the Viceroy. I now beg to inclose copy of my letter of the 14th instant, requesting him to record his assurance of friendly co-operation in carrying out the Agreement of 1899 for the construction of the Canton-Kowloon Railway.

I also inclose copy and translation of the Viceroy's reply of the 22nd instant, from which you will see that the Viceroy refuses to hold himself bound by the above Agreement, and declares that all negotiations are at present premature.

(1:)

PUBLIC

TPT

RECORD OFFICE

Reference :-

C.O. 882

9

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC. COPYRIGHT PHOTOGRAPH—NOT TO

(Translation.)

PRINCE CH'ING to Sir E. SATOW.

Kuang Hsü, 31st year, 8th moon, 18th day (September 16, 1905).

have the honour to acknowledge the receipt of Your Excellency's note of the 11th instant on the subject of the Canton-Kowloon Railway, in which you ask that the Chinese Government should instruct the Viceroy at Canton to open nego- tiations with the Representatives of the British and Chinese Corporation.

I have the honour to state, in reply, that the desire of the Chinese gentry and merchants to raise funds, and themselves undertake the line within Kuangtung territory corresponds exactly with the idea that the line within the British leased territory is to be constructed by the Hong Kong Government themselves. On receiving Your Excellency's note under acknowledgment, the Board communicated it to the Viceroy at Canton for his consideration; but we must state clearly that we are bound to await the Viceroy's Report as to what plan he proposes before we can inform Your Excellency. In the meantime I have the honour to make this pre- liminary reply.

YOUR HIGHNESS,

I avail, &c.

(Seal of the Board of Foreign Affairs.)

(2.)

Sir E. SATOW to PRINCE CH'ING.

Peking, September 19, 1905. I HAVE the honour to acknowledge the receipt of Your Highness' note of the 18th instant, with reference to the Canton-Kowloon Railway, in which you state that the desire of the Cantonese Notables and merchants to raise funds and build the Kuangtung section of the line themselves corresponds with the method of the Hong Kong Government in regard to the section in British territory; that my note of the 11th September has been communicated to the Viceroy of Canton for his con- sideration, but that you must await His Excellency's report before Your Highness can reply to my note.

I am obliged to point out once more, in order that there may be no misunder- standing, that whatever the desire of the Cantonese gentry and merchants in regard to this matter, and whatever the plans of the Viceroy, His Majesty's Government look to the Chinese Government and Your Highness to see that the terms and conditions of the preliminary Agreement of the 28th March, 1899, are faithfully carried out.

As the matter is of serious importance, and I have received telegraphic inquiries in regard to it from His Majesty's Government, I shall be glad of an early reply to the request contained in my note of the 11th September, that the instructions of the Imperial Chinese Government may be sent forthwith to His Excellency the Viceroy of Canton to enter into negotiations with a representative of the British and Chinese Corporation.

I avail, &c..

ERNEST SATOW.

SIR,

(4.)

Consul-General Scorr to VICEROY OF Canton.

Canton, August 14, 1905.

RECENTLY I received a telegram from His Majesty's Minister in Peking to the effect that important negotiations were in progress with Viceroy Chang Chib- tung in regard to the Canton-Hankow Railway, involving considerations in con- nection with the construction of the Canton-Kowloon line, in which it was important to secure your friendly co-operation; and His Majesty's Minister directed me to consult you personally and arrange matters.

I regret, however, that, owing to the unsatisfactory state of your health, I was unable to obtain an interview.

I accordingly wrote to your Private Secretary, Mr. Kao, inclosing copies of the Canton-Kowloon Railway Draft Agreement, and also of the proposed working Agreement for communication to Your Excellency.

Shortly afterwards I had the honour of a visit from Mr. Kao, conveying the assurance of your friendly co-operation; and this assurance I duly transmitted to His Majesty's Minister.

Of the two draft Agreements, one dealt with the section within Chinese terri- tory, and was practically identical with the Shanghae-Nanking Railway Agreement concluded in 1903 with Shêng Kung Pao. The other covered the necessary arrange- ments for the joint working of the whole line including the section within the British territory.

His Majesty's Minister desired me to assure you that, in the settlement of the various details, every consideration would be shown to the views and wishes of your Government.

I am now in receipt of a further telegram from His Majesty's Minister, inform- ing me that he has received my report, and had duly noted Your Excellency's assurance of friendly co-operation. I am also instructed to request Your Excel- lency to record, in reply hereto, the above assurance, and also your willingness to take early steps to carry out the Agreement of 1899 with Shêng Kung Pao for the construction of the Canton-Kowloon Railway.

(Translation.)

(3.)

VICEROY OF CANTON to Consul-General SCOTT.

SIR,

August 22, 1905. I HAVE the honour to acknowledge the receipt of your communication of the 14th instant, with reference to the question of the Canton-Kowloon Railway,

Some days ago Mr. Kao, the foreign deputy, translated for my benefit the copies of the draft and proposed working Agreements which you had forwarded. After careful consideration of these documents, I would point out that, in this draft Agreement which was concluded with Commissioner Shêng, Director-General of Railways, in 1899, it is clearly stated that if, in the negotiations with the Viceroy

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