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PUBLIC RECORD OFFICE

Reference :-

C.O. 882

6 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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involve the risk of overstepping these terms, he laid down that two nationalities would be employed so as to check schemes of sole control. Now, onlookers may criticise at case, but the players could not but ponder every step, so that after the redemption was carried through they might have a plan ready for a permanent building system. If further loans proved necessary there was this despatch which prevented their making undue demands; if no further loan were needed, the whole thing fell to the ground. The question of borrowing or no was left to the general voice, subject to Their Majesties' decision. When discussion came on action was quite untrammelled.

Now it is decided to build without raising foreign loans. On the Wai Wu Pu's telegram of 28th of moon reaching Hupei, memorialist replied on 29th "Declaration not to borrow involves no difficulty, the decision lies with us, and there will be no complication at all.” At present the loan proposal has long faded away, there is perfect tranquillity and utter absence of consequences. At this moment the sole trouble is provision of funds. Yet the censor, ignoring the difficulties and without enquiry into the facts, devotes himself to making the worst of acts and ingenious slanders, relies on an abandoned proposal as a subject for defamatory libel. That he is evidently actuated by a fixed purpose Their Majesties will, of course, have perceived. Whether memorialist's management of this matter was good or bad he need not argue, since above there is the perspicacity of the Court, below the public opinion of the gentry and people of the three provinces as well as of the men of the empire.

On him-decrepit and commonplace was bestowed the Order to see to the cancelling of the concession. As, happily, this road has been got back, anxiety and indignation have been somewhat allayed, fault and responsibility slightly diminished. He begs leave to add that as to the future work of constructing the line the 70 odd miles in Hupei, he will urge the authorities and gentry duly to finance and carry out; with the arrangements for the Kuangtung section he submits the Viceroy of the Two Kuang should be charged; as regards the Hunan section's requirements, should the resident Hunan gentry present joint telegrams and letters begging him to take control, he will act in consultation with the Hunan Governor, otherwise the question will be left to the latter to deal with.

Memorialist, jointly with the Viceroy of the Two Kuang and the Hunan Governor is presenting a separate detailed report on the general plan for joint construction proposed by the three provinces.

31357

No. 275.

GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN.

(Confidential.)

MY LORD,

(Received August 24, 1906.)

[Copy to Crown Agents, August 29, 1906. L.F.]

Government House, Hong Kong, July 20, 1906. WITH reference to the 2nd paragraph of your Lordship's confidential despatch of the 8th June,* with regard to the reclamation required for the Kowloon terminus of the Canton-Kowloon Railway, I have the honour to state that the survey of Hung Hom Bay embodied in the plans which accompanied my despatch of January 12th has not been plotted locally on a larger scale than on those plans, and that I have ascertained from the Commodore that there are no records here from which this could now be done. It is possible, however, that data for replotting the survey could be obtained from the Admiralty. If reference is made to that Department in the matter it would be well to state that the survey was carried out by the Commander of H.M." Albion" in February, 1905,

2. Referring to (2) and (3) of the Consulting Engineers' letter of the 25th May, 1906, which formed the first enclosure to the despatch* under reply, I have the honour to state that it is now proposed to continue the reclamation for the prelimi- nary scheme for a further 1,200 feet in a southerly direction until it abuts on Messrs. Blackhead and Company's Kowloon Marine Lot, No. 81, and that a revised

† No. 213.

• No. 256.

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plan for this reclamation has been sent to the Consulting Engineers by the Chief Resident Engineer.

3. In (4) of the same letter Sir John Wolfe Barry and Partners state that they have been, and are, giving a most careful and detailed consideration to the finished scheme. In this connection I suggest that their attention should be called to the latter part of paragraph 7 of my confidential despatch of the 12th January,* in which I stated that it was only necessary for them to consider at the present time the complete scheme to the extent of avoiding in the laying out of the station yard arrangements which might be inconvenient when further sections of this scheme are undertaken.

I have, &c.,

31949

(Secret.) MY LORD,

No. 276.

M. NATHAN,

Governor, &c.

GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN. (Received August 28, 1906.)

Government House, Hong Kong, July 26, 1906. IN continuation of my Secret despatch of the 13th July 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 a further telegram from His Majesty's representative at Peking.

2. The Viceroy's Secretary, Taotai Kung Hsin Chan, the representative from Canton who is to take part in the negotiations, leaves Hong Kong to-day for Peking. From a brief conversation I had with him yesterday I gathered that he was instructed to revive all the arguments against the completion of the loan agreement on the lines of the final Shanghai-Nanking agreement, which were advanced to, and refuted by, Sir Ernest Satow.

I have, &c.,

Enclosure in No. 276.

XXXVIII.

M. NATHAN.

HIS MAJESTY'S CHARGÉ D'AFFAIRES, Peking, to GOVERNOR, Hong Kong.

(Paraphrase.) July 18, 1906.

of State for Foreign Affairs :—

31950

TELEGRAM.

No. 18. The following telegram I have sent to the Secretary

"With reference to your telegram, No. 125, I have received from the Chinese Government a note stating that the Canton Viceroy has been notified that the Canton to Kowloon Railway will be negotiated by the Chinese Foreign Office and a representative of the British and Chinese Corpo- ration, together with a representative from Canton, who is to be sent to Peking. My enquiries respecting the Whampoa scheme have not yet been answered by the Chinese Foreign Office."

CARNEGIE.

No. 277.

GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN. (Received August 28, 1906.)

Government House, Hong Kong, July 27, 1:06.

IN continuation of my Secret despatch of the 12th July, dealing with a

(Secret.)

MY LORD,

• No. 213.

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Chinese project to connect Whampoa with Canton by railway, I have the honour to transmit, for Your Lordship's information,, a copy of a despatch on the subject addressed to me, on the 7th instant by His Majesty's Chargé d'Affaires, and of one that I have to-day sent in reply.

I have, &c.,

M. NATHAN.

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telegraphed to you yesterday. I enclose a paraphrase of my telegram for convenience of reference.

I have, &c.,

M. NATHAN. P.S. Since writing the above I have received your telegram of to-day's date, of which a paraphrase is also annexed.

Enclosure 1 in No. 277.

(Confidential.)

SIR,

Peking, July 7, 1906. WITH reference to Your Excellency's despatch, Secret, of May 10th, and your telegram of May 11th, on the subject of a proposed railway connecting Canton with Whampoa, I have the honour to state that, according to my information, this project was mooted by the Chang referred to in Sir E. Satow's telegram of April 18th, 1905, to Lord Lansdowne, but that the Cantonese gentry objected to his having anything to do with it, and that nothing has been done. I am assured that the Chinese Government know nothing officially about it.

Your Excellency's despatch of May 10th mentions newspaper articles only, but in your telegram of May 11th you refer to other information, which would indicate that serious steps were being taken in the matter. It would be some assistance to me if Your Excellency would be so good as to inform me of the nature of this information.

am communicating a copy of this despatch to His Majesty's Consul-General at Canton.

Sir Matthew Nathan, K.C.M.G.,

&c., &c.,

&c.

I have, &c.,

LANCELOT D. CARNEGIE.

EXTRACT from the "CHINA MAIL," July 19, 1906.

From official sources, it is reported that the construction of the Canton-Whampoa Railway is to commence in the month of August. A large quantity of railway material has been purchased. Wooden material is still required to complete the contract. But as things Chinese- are so dilatory, it would not do to be too sanguine until work actually begins.

Cory of the "WAH TSZ YAT Po" of July 19, 1906.

(Not sent.)

(Translation.)

AN EXTRACT from the "WAH TSZ YAT Po" of the 19th July, 1906.

A TIME FIXED FOR THE COMMENCEMENT OF WORK ON THE CANTON-WHAMPOA RAILWAY- It has been reported in a previous issue that an officer surnamed Cheung was appointed to be in charge of a guard to protect the survey and construction of the Canton-Whampoa Railway. We now understand that Viceroy Shum has urgently pressed that the work should. be put in hand forthwith, and has decided to make arrangements for commencing the work in the 7th or 8th moon. The officials and gentry are consulting as to the purchase from various shops of the necessary timber, &c., iron plates and engines, for which the full price will be paid when they are delivered in autumn."

Enclosure 2 in No. 277.

PUBLIC

RECORD OFFICE

Reference :-

C.O. 882

6

PUBLIC RECORD OFFICE, LONDON

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

(Secret.)

SIR,

Hong Kong, July 27, 1906. IN continuation of my Secret despatch of the 12th July, dealing with a Chinese project to connect Canton with Whampoa by a railway, I have the honour to transmit, for your information, a copy of an extract from "The China Mail," and a copy of the "Wah Tsz Yat Po," issues of the 19th instant, together with a translation of an article in the latter on this subject.

2. With reference to the request contained in your letter of the 7th, that I should acquaint you with the nature of the information indicating that serious steps were being taken in the matter, other than that derived from newspaper articles, I have the honour to state that on May 9th Mr. C. H. Ross, of Messrs. Jardinc, Matheson and Company told me that their branch in Canton had reported to them that the preliminary survey had been put in hand.

3. Shortly afterwards I discussed the matter with Mr. Murray Stewart, Chairman of the Hong Kong branch of the China Association, who has now, at my request, written the enclosed letter, giving the nature of the private information in his possession. You will probably not require to make any use of this letter, but in case you do you will, I am sure, see that the Chinese authorities get no suspicion that a British firm (the name of which has been communicated to me) is interesting itself in this affair.

4. This morning Mr. Mayers, of the Imperial Maritime Customs, and Commis- sioner at Canton, told me, in the course of a private conversation, that there was no attempt at concealment of the fact that the railway was to be put in hand at once, and that there was nothing to stop this, the preliminary survey having been completed and the money having been put up by Mr. Chang. Regulations for the railway had actually been sent by the Viceroy to Mr. Mayers, for his observations.

5. That there is no concealment by the Cantonese authorities of their intention to construct a line in disregard of the preliminary agreement with the British and Chinese Corporation for the Canton-Kowloon Railway is clear from the statement made to me by the Viceroy's Secretary, Kung Hsiu Chan, on the 25th instant, and

Hong Kong, July 26, 1906.

DEAR SIR MATTHEW NATHAN,

WHEN I told you some little time ago that the Canton-Whampoa Railway scheme had entered upon the practical stage I was speaking on the strength of the following information: A friend of mine, the head of a British firm, told me (I think early in June) that Cho Pat Tsza, alias Chang Po Shi, alias His Excellency Cheung, Lord High Chamberlain, had, the day before, been interviewed here in Hong Kong on the subject of the prospects of the scheme, and had expressed doubt as to whether the necessary authorisation would be forthcoming from Peking. Immediately after this Chang went to Canton to persevere with his negotiations. In the beginning of July my friend's compradore informed him, and the informa- tion was passed on to me, that Chang had sent his Private Secretary to tell him (the compradore) that the necessary authority had been received from Peking, and that the work was to be begun as soon as possible. The scheme for the railway includes that for making a port on the left bank of the river opposite Whampoa, with the necessary wharves and godowns. My friend's compradore stated that he had seen the plans for both port and railway. These were said to be the work of an American, at one time in the employ of the America China Development Company, the late concessionaires for the Canton-Hankow line. The compradore further said that there had been an opening ceremony "in a field" on the river bank opposite Whampoa. When asked what kind of a ceremony he said "a religious ceremony." He translated the name of this ceremony as "Blessing the ground"; and he stated that an official presided, probably a magistrate. The date given was 3rd July, but, as to this, he was not positive. All that he positively stated was that it took place about then, and marked the beginning of practical work in connection with the project. He had heard that two location engineers foreigners had been em- ployed to work out the existing plans in detail. He said that Viceroy Shum knew all about these happenings, and was urging Chang to push on with the scheme. As it might be inconvenient for my friend if either he or his compradore were thought to be supplying information to British authorities calculated to hinder the

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