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and suggesting that we might ask the British Minister to abandon the enterprise. Copies of these telegrams were submitted to His Majesty, and on the 16th we had the honour to receive the following Imperial Edict :-

Regarding the Canton-Kowloon Railway, it has been agreed between the Yamen and the British Minister that Sheng Hsuan-hwai and the British merchants should draw up regulations, and so the enterprise cannot be abandoned. We hereby command T'au Chung-liu to depute officers to look after the survey of the route, and to earnestly exhort the people not to raise pretexts for obstruction, thereby causing ill- feeling. Respect this."

Upon the receipt of the above, we telegraphed to the Viceroy of the Two Kuangs and we are now in possession of a copy of a memorial from him, transmitted to us by the Grand Council. It reads:-

·

"With regard to the Canton-Kowloon Railway, I have reverently received the Edict ordering me to depute officers to look after the survey, but, as I find that in this Province there is no officer familiar with railway work, I must ask for an Edict to be issued ordering Sheng Hsuan-huai to proceed to this Province accompanied by foreign operatives to make a survey, when I will also send officers to look after the operations. If land belonging to the people is to be purchased, I will put out a proclamation directing that it must be sold at current prices, and forbidding people to hold on to it with the intent of raising the price." On the 8th November we had the honour to receive the Imperial Rescript "Let the Yamen concerned take note. Respect this." We therefore, as in duty bound, make this communication to Your Excellency (Sheng), so that you may take action in conformity with Imperial commands.

Having severally issued instructions to the persons concerned, I have therefore to address this official communication to Your Excellency (T'au) with the respectful request that you will inform yourself of its contents.

I have, &c.,

SHENG-HSUAN-HUAI, Director-General of Railways.

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On the 3rd instant I received an answer in writing to the effect: (1) that the preliminary agreement being for a line from Canton to British Kowloon, my proposals of April 26th are not in accordance therewith; (2) the capitalists and notables of the province, according to a report received from the Viceroy, propose to raise funds with which to build the Chinese section for themselves, and His Majesty's Consul- General at Canton has been informed of this; it is not necessary therefore that a loan for this purpose should be raised on behalf of China by the British and Chinese Cor- poration, and, in view of the Wai Wu Pu, no one need be appointed to negotiate with the Corporation; the Canton Viceroy will supervise the construction of the line.

I am addressing a strongly worded note to the Wai Wu Pu asking whether it is really their intention to repudiate the agreement they solemnly entered into in 1899, and pointing out that this agreement is for the construction of a railway from Canton to the leased territory, and that it would be impossible for the British and Chinese Corporation to contract to build for the Chinese a railway over British territory. Finally I urge that instructions to negotiate with the Corporation's agent be sent to the Viceroy. As he is the principal obstructive, it is in my opinion better that he should negotiate himself than that another official should be nominated who would agree to nothing without the consent of the Viceroy.

Separate. The words "British leased territory of Kowloon" appear in the Chinese text of the preliminary agreement; in the English text the words are "British Kow- loon"

only. The British and Chinese Corporation knew nothing of the Convention of June 8th, 1898, but Sheng evidently knew of it.

Despatch follows by bag.

British Legation,

(Repeated to Hong Kong.)

ERNEST SATOW.

Peking, September 11, 1905.

Enclosure 2 in No. 139.

PUBLIC RECORD OFFICE

Reference :-

TLC.O. 882

6

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT TO

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(Confidential.)

No. 139.

FOREIGN OFFICE to COLONIAL OFFICE.

(Received September 26, 1905.)

Bir E. Hatow, Telegram No. 168, Sept- ember 11, 1905.

The Under-Secretary of State for Foreign Affairs presents his compliments to the Under-Secretary of State for the Colonies, and is directed by the Secretary of State to trans- mit, for the information of Mr. Secretary Lyttel- ton, the accompanying copies of four telegrams, as marked in the margin, relating to the Canton- Kowloon Railway and the Soochou-Ningpo Railway.

To Sir E. Satow, Telegram No. 133, September 15, 1905.

Sir E. Satow, 175, September 21.

To Sir E. Satow, 137, September 24.

Foreign Office,

September 25, 1905.

(No. 168.)

(Paraphrase.)

Enclosure 1 in No. 139.

TELEGRAM.

I addressed a note to the Wai Wu Pu on the 30th ultimo requesting them to appoint an official to negotiate the final agreements for a railway between Canton and the British leased territory of Kowloon, and the construction and working on joint account of the section from the boundary to the harbour of Hong Kong.

The MARQUESS OF LANSDOWNE to Sir E. SATOW. (No. 133.) (Telegraphic.) P.

Foreign Office, September 15, 1905.

In view of the unsatisfactory attitude of the Chinese Government in regard to the appointment of an official to negotiate final agreement for construction of Canton- Kowloon Railway, I request that you will furnish me with any suggestions as to the best manner in which we might put pressure upon the Chinese Government.

Enclosure 3 in No. 139.

TELEGRAM from Sir E. SATOW, Peking, to the MARQUESS OF LANSDOWNE, No. 175, dated September 21, 1905.

(Paraphrase.)

Please refer to your Lordship's telegram, No. 133.

On the 18th instant, at the request of the British and Chinese Corporation, I addressed a note to the Foreign Board requesting the appointment of an official for the purpose of negotiating the final agreement for the railway from Soochow to Ningpo.

Provincial opposition is met with in regard to this concession as well as others. In case I do not receive a satisfactory answer to this Note or to that mentioned in my telegram No. 168, I propose that I should have a personal interview with Prince Ch'ing for the purpose of warning him seriously against going on in this ill-advised manner, and informing him that China will certainly not be permitted by His Majesty's Government to break undertakings which she has solemnly entered into in writing.

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