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PUBLIC RECORD OFFICE

Reference :-

TTIC.O. 882

6PUBLIC RECORD OFFICE, LONDON

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I passed Whampoa on my way to Wai Chau a few days ago and found Whampoa to be a very important place. With regard to the proposals formerly submitted by His Excellency Cheung as to the opening of Whampoa as a treaty port and that the Canton-Whampoa Railway should first be constructed, I hope that steps will be taken to commence work as soon as possible with a view to early benefiting commerce. Should His Excellency Cheung find himself unable to go on, I desire that the provincial finances should be used to prevent delay. His Excellency Cheung has been requested to immediately discuss and draw up regulations for opening Whampoa as a treaty port so that these may be decided on and submitted to the Throne for approval and, at the same time, Magistrate Pun and other officers deputed by the Company have been directed to make a clear survey of the railway at once and, when finished, report immediately and say when the construction of the railway can be commenced.

TRANSLATION of an Extract from the "She Man San Po" of the 12th May, 1906. Work respecting Whampoa to be Commenced in a Short Time.

We have already published, in former issues, intelligence concerning the opening of Whampoa as a treaty port and the construction of the first section of the Canton- Amoy Railway. We have now learned that Viceroy Shum, after his return from Whampoa to Canton, has paid special attention to this matter. He has made a communication to Cheung Pat-sz, Lord High Chamberlain, and has deputed some officers to expedite the completion of the work of surveying so that arrangements for the commencement of work may be made. We further learn that Viceroy Shum has decided, in the event of His Excellency Cheung not being able to raise the amount of money he promised, that the officials should help him by raising funds to meet an early expenditure. Arrangements will be made for the work to com- mence on consultation with His Excellency Cheung when he returns to Canton.

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(Secret.)

MY LORD,

No. 261.

GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN.

(Received June 18, 1906.)

Government House, Hong Kong, May 18, 1906. IN continuation of my secret despatch of the 20th April on the subject of negotiations for the completion of a Loan Agreement and of a Joint Working Agree- ment in connection with the proposed Canton-Kowloon Railway, I have the honour to enclose, for information and record, a paraphrase of further telegraphic com- munications with His Majesty's Representative at Peking and the Consul-General at Canton.

2. Sir Ernest Satow's telegram of the 22nd April (XXIX.) was in reply to mine of April 20th (XXVIII.) announcing the Viceroy's intention to visit Hong Kong, of which a paraphrase was forwarded in my last despatch. On the 22nd heard from Mr. Mansfield that the Viceroy had returned to Canton ill and was obliged to postpone his visit to Hong Kong. On the following day his Secretary, Taotai Wen Tsung Yao came to make the Viceroy's apologies and told me that His Excellency had had a fainting fit. I have no doubt this was the case and also that had the Viceroy continued to desire the conversation with myself for which he had asked, the visit would have been made in spite of the temporary indisposition.

3. Mr. Wen, in conversation, stated that the Viceroy was anxious to negotiate the Joint Working Agreement directly with this Government. I raised no objec tion to this and after the conversation sent Sir Ernest Satow my telegram of the 23rd (XXX.). I also wrote to Mr. Mansfield to get the Viceroy's deputies to put

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on paper how far the Viceroy would accept the draft of the Joint Working Agree- ment, of which they had copies. On the 3rd of May I asked (Telegram XXXI.) Mr. Mansfield whether he had any progress to report. He replied on the following day that, though he had had some conversation with the Secretaries, there seemed to be a distinct unwillingness to go into any details of the working arrangements until the Loan Agreement was settled. On the 13th May I asked His Majesty's Chargé d'Affaires at Peking (Telegram XXXII.) what progress had been made in the negotiations and was informed on the following day (Telegram XXXIII.) that no progress had been made and that Mr. Bland was fully occupied with matters concerning the Shanghai-Nanking Railway. I learnt from Mr. C. H. Ross here that these matters were connected with the Director-General of Railway's refusal to sanction the issue of the second part of the loan for that line.

4. Negotiations for the Canton-Kowloon Railway Agreements are thus again suspended. I am inclined to think that I made a mistake in not protesting against those for the Loan Agreement being transferred to Peking when I was informed of Mr. Bland's decision (Enclosure 2 to my secret despatch of April 20th*) to comply with the Viceroy's request for this transfer, which relieves the Viceroy of the duty imposed on him by Imperial Edict and further complicates the negotiation by making it dependent on other matters with which this Colony is not directly interested.

5. The present state of affairs is most unsatisfactory and I should be glad if His Majesty's Government could see their way to bring pressure to bear on the Chinese Government to complete the negotiations without further delay.

I have, &c.,

Enclosure in No. 261.

M. NATHAN,

PARAPHRASE of Telegraphic Correspondence.

XXIX.

Governor.

HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong. (Despatched 7.56 p.m.; received 8.40 p.m., April 22, 1906.)

Eleven. Your telegram 20th April. I hear that Mr. Bland is not expected here before April 26th at the earliest and I can, therefore, give you no information, as I have, of course, not done anything pending his arrival. I do not understand what is meant by the Viceroy having transferred the negotiations to Peking, unless it has been so agreed between him and Mr. Bland.-SATOW.

XXX.

GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S MINISTER, Peking. (Despatched 6.30 p.m., April 23, 1906.)

Your telegram yesterday. Visit of Viceroy postponed owing to sudden illness. Secretary Wen came to see me to-day and stated, amongst other things, that the Viceroy wished to negotiate the Working Agreement directly with us. I raised no objection. The transfer of Loan Agreement negotiations was agreed between the Viceroy's deputies and Mr. Bland.-NATHAN.

XXXI.

GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Canton. (Despatched 11.17 a.m., May 3, 1906.)

Have you anything to report regarding Canton-Kowloon Railway negotiations?

-NATHAN.

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