CO882-6 — Page 517

PUBLIC RECORD OFFICE

Reference :-

1C.O. 882

6

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

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that I wish to bring forcibly before you in these last moments before I leave your shores. That is the pressing necessity of utilising the British concession that has been granted for a railway from Canton to the borders of our territory. That con- cession has been granted to a British syndicate, and it is their duty to utilise it and supply the natural seaport terminus to the great arterial line to Hankow, lest possible developments be sought inimical to the interests of Hong Kong. We have not built up our Empire by being laggards in the race for developments necessary for the expansion of the trade of the world, and letting I dare not wait upon I would has never conquered a position nor retained it for either men or nations." These sentences were most earnestly endorsed by the assembly addressed, and a very real anxiety now prevails in Hong Kong on this subject. Much discussion has ensued thereon; and as it is understood that the engineering difficulties to be encountered on the first ten miles of the route through British territory have poten- tially contributed to cause the delay in commencing the undertaking, my Com- mittee would like here to suggest a plan which, in their opinion, would assist to ensure the railway proving remunerative.

Instead of following the route which is generally believed to have been selected, it is, in the opinion of those who know the country, desirable that the line should, after passing Shamchun, proceed along that valley towards Kai Kong and Pu-Kak, crossing a small ridge to the west until it strikes a tributary of the East River. From thence, following up this latter valley, the line should run north to Kon Lan, and from there through a fertile country up to Sheklung, a populous town in the Tungkun district. The East River would have to be crossed near Sheklung, and the line should then take a direction due west towards Canton, through a densely inhabited district. Between Sheklung and Canton some bridging would be neces- sary, owing to the creeks and tributaries, but none requiring a large span, with the exception of that across the East River, near the former place. As a lucrative feeder to this, the main line, and as essential to the development of trade with Waichow, I would suggest that a branch be laid from Sheklung to Waichow. It would be only about thirty miles in length, and its construction would be compara- tively simple. The country is flat, and the streams to be crossed are narrow and could be bridged at small cost. The estimated total length of the railway from Kowloon to Canton, if laid on the above route, is about one hundred miles, making, with the proposed branch to Waichow, some 130 miles in all. They would traverse a country teeming with population and rich in natural products. They would clash with no vested interests, such as the river steamboat companies, for they would not follow the same line of country, and they would not even touch at Whampoa, which is already well served by the great waterway on which it is situated.

The enterprise is a tempting one in spite of some few engineering difficulties in the new territory, and if these are regarded as so serious as to constitute a draw- back, perhaps His Majesty's Government might be induced to assist, either by a grant of money or land, or by a guarantee. In any event, no trifling obstacle of this kind should be allowed to delay the construction of this railway, so vital to British interests. Now that French agents are so actively creating French interests and promoting French prestige in the Two Kwang, by subsidising steamboats on the rivers, extending railways to the frontiers, establishing banks, mercantile agencies, hospitals, and post offices, no time should be lost, no money spared to maintain that paramount position in Kwangtung Great Britain has hitherto enjoyed, but which may easily be imperilled if parsimony, timidity, or want of patriotic spirit are allowed to prevail.

Trusting that your Committee will take up this urgent question with the promptitude and vigour needed to secure for it that immediate attention so greatly desired here,

Joseph Welch, Esq.,

Honorary Secretary,

China Association,

London.

I am, &o.,

R. CHATTERTON WILCOX,

Chairman.

3496

(Paraphrase.)

5

No. 3.

ACTING GOVERNOR MAY to MR. LYTTELTON. (Received 7.50 a.m., January 30, 1904.) TELEGRAM

My despatch, confidential, of the 12th [? 15th] ultimo.* Peking-Hankow Railway made to the American citizens who formed American Concession for China Development Company was subject to a condition that the rights under it may not be alienated to other nations or persons of other nationalities. I am in- formed on good authority that the Director of Chinese Railways has lately sent a telegram to Washington to the effect that unless the Belgians and Russians to whom some of the original American stockholders have sold their shares be got rid of, the concession will be cancelled. I beg again to urge the importance of the British Government's obtaining, possibly in conjunction with the American Govern- ment, a large interest in this line.

3496

SIR,

No. 4.

COLONIAL OFFICE to FOREIGN OFFICE. [Answered by No. 6.]

I AM directed by Mr. Secretary Lyttelton to transmit to you, for the con-

Officer Administering Government, Confidential, December 15, 1903.

Officer Administering Government, 577, December 17, 1903.

Officer Administering Government, January 30, 1904.

Downing Street, February 4, 1904. sideration of the Marquess of Lansdowne, the papers,† noted in the margin, on the subject of the proposed Peking-Hankow-Canton and Canton-Kowloon railways.

It will be noted that the Acting Governor of Hong Kong urges that a substantial interest in the Hankow-Canton railway should be acquired by His Majesty's Government.

2. Mr. Lyttelton attaches great importance to the proposal to connect Kowloon and Canton by railway, and he presumes that there are no political objections to such a scheme.

5290

(Confidential.)

SIR,

No. 5.

I am, &c.,

C. P. LUCAS.

ACTING GOVERNOR MAY to MR. LYTTELTON. (Received February 13, 1904.)

Government House, Hong Kong, January 15, 1904.

I HAVE the honour to transmit, for your consideration, the enclosed copy of the heads of a discussion which I recently had with the Chief Manager of the Hong Kong and Shanghai Banking Corporation, on the subject of a proposal that the Hong Kong Government should guarantee the payment of interest on the capital subscribed for the construction of the railway from Canton to Hong Kong.

2.

Mr. Smith's reason for making the proposal is that there is difficulty in raising money in London on the guarantee of China alone. If there were an additional guarantee behind that of China by this Colony or the Imperial Govern ment, the money, which after all is a comparatively small sum, could be raised, and the line constructed at once.

• No. 1.

+ Nos. 1, 2 and 3.