CO882-6 — Page 660

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

6

PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO

288

CXXXVIII.

HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong.

(November 23, 1905.)

Your telegram of the 23rd of November. As far as I know it relates only to railway enterprise. For the details of the proposed arrangement, see page 798 of "The London and China Express" of 13th October. The railways comprised are Rukou-Sinyang, British portion of Tientsin-Chingkiang, Szechuan-Hankow, and Yunan-Chunking.

The Agreement between the British and French financiers was signed in July, but the French Government withheld their approval on the ground that the Chairman is to be a British subject with a casting vote and do not know whether the difficulty has been overcome in the meantime.

I suggest that you should ask to be supplied regularly with the Foreign Office confidential prints relating to China. I think your predecessor used to receive them.

(42110.)

CXL.

GOVERNOR, Hong Kong, to SECRETARY of State.

(Despatched 6.5 p.m., November 25, 1905.)

Your telegram of the 22nd of November requires much consideration and I will reply to it in a few days.

The object of this Government is to secure Hong Kong remaining the seaport of any line running to Canton and any foreign influence or interest might militate against this. At the same time it would be an advantage if the Canton-Hankow line could be completed by the time the Canton-Kowloon line is finished.

CXLI.

GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S MINISTER, Peking.

(Despatched 3.55 p.m., November 26, 1905.)

On November the 23rd I received the following telegram from the Colonial Office:-

"The French Government have suggested that we should extend to the Canton- Hankow Railway the understanding regarding Anglo-French co-opera- tion in China.

"The Foreign Office think it might be an advantage to adopt this course as it seems to be the only way of breaking the opposition of the Chinese Government to the construction of the railway.

"Telegraph as soon as possible whether see any objection to this proposal."

I propose to reply as follows:-

you

"After full consideration I do not object to 45 per cent. of the construction loan for the Canton-Hankow Railway being issued in Paris, on the understanding that this confers no control over the railway. The Bel- gians should be excluded and the arrangements as to material and engineers provided in our Agreement with the Viceroy at Wuchang should stand."

Do you concur?

289

CXLII.

HIB BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong. (Despatched 5.13 p.m., November 27, 1905; received 6 p.m., November 27, 1905.)

(No. 24.)

Your telegram of 26th November. This suggestion emanates from the French Minister here who, on hearing that the Viceroy at Wuchang proposed to borrow British money, supported the Belgian pretension that Belgium was entitled to the rail- way, owing to the American concession having fallen through, and then boasted to me of what he had done. The Belgian pretension is quite untenable. Chang has made us a promise regarding this matter, for which we have given valuable consideration, and the French have no just claim to a share in the loan. French co-operation will not be of much assistance as the Chinese distrust them, and it is quite possible that the prohibition to borrow imposed on Viceroy Chang was partly prompted by the publication in the Press of the Anglo-French Agreement mentioned in my telegram of November the 23rd.

As the Belgians are to have a 10 per cent, share in the Central China Railways, Limited, I do not see how it will be possible to exclude them.

It also seems to me that before we consider any French proposal, the French Government should abandon their opposition to the British Chairman with a casting vote, and I also agree with you that we must insist on arrangements with Chang as to engineers and purchase of material being recognised.

(42300.)

CXLIII.

GOVERNOR, Hong Kong, to SECRETARY OF STATE.

(Despatched 10.45 a.m., November 28, 1905.)

My telegram of 25th November. After consultation with Sir Ernest Satow, I have decided that the loan by a British Company to enable the Chinese to construct the Canton-Hankow Railway is in no way damaging to French interests and that base- less Belgian pretensions to the right to construct the line cannot be supported by the French unless they wish to be unfriendly to us in this matter. Sir Ernest further doubtful whether co-operation of the French, who are distrusted by the Chinese, would help us in getting the line constructed and agrees with me that we should adhere to the terms of our Agreement with Chang.

CXLIV.

GOVERNOR, Hong Kong, to His BRITANNIC MAJESTY'S MINISTER, Peking. (Despatched 11.15 a.m., November 28, 1905.)

Your telegram of 27th November. I telegraphed last night to the Secretary of State for the Colonies as follows:— (Telegram CXLIII. repeated.)

1634

No. 195.

GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN. (Received January 13, 1906.)

[Copy to Foreign Office, February 7, 1906. L.F.)'

Government House, Hong Kong, December 15, 1905.

IN continuation of my secret despatch of the 30th November* on the subject

(Secret.)

SIR,

IRROJ

• No. 198.

10Page 661

PUBLIC RECORD OFFICE

Reference :~~

Timi

PLEC.O. 882

6

PUBLIC RECORD OFFICE, LONDON

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

290

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 your information and record, a paraphrase of further telegraphic corre- spondence with His Majesty's Minister at Peking and His Majesty's Consul-General at Canton.

2. My telegram of the 1st December (CXLV.) was sent to Mr. Scott on receipt of a letter from him conveying Mr. Wei's thanks for the interview I had granted him, as reported in my despatch above referred to, but adding that the Viceroy regretted that owing to ill-health he was not able to see Mr. Ross. In reply to this telegram Mr. Scott wrote to me on the 4th that, with the Viceroy ill, it seemed as if nothing could be definitely settled. He added that the Viceroy cared nothing for the Wei-Wu-Pu and that all he wanted was to cancel the agreement with the Cor- poration. On receipt of this letter from the Consul-General, 'I sent my telegram of the 5th (CXLVI.) to His Majesty's Minister, who saw the Wei-Wu-Pu on the fol- lowing day, and sent to the Consul-General his telegram of the 7th (CXLVII.), which was communicated to me by Mr. Scott by letter on the 9th. On the 12th he sent me a copy of a despatch which, on that day, he had addressed to Sir Ernest Satow, of which a copy is forwarded herewith, together with a translation of the Viceroy's letter of the 11th, which it enclosed, deputing Mr. Wei and a Mr. Kung to meet the Agent of the British and Chinese Corporation. I at once saw Mr. Ross and sent my telegram of the 13th (CXLVIII.), asking that a meeting might be arranged for to-day (December 15th). Etiquette, however, required that the Viceroy should fix the date of the meeting and he has now appointed the 18th.

3. Mr. Ross has communicated with the British and Chinese Corporation in London on the subject of the approaching interview and has been informed by them that they would see your Department in the matter. I have carefully considered whether it would be advisable to communicate with you by telegraph with regard to any modifications of the draft agreements, but have come to the conclusion that nothing could be gained by doing so until some definite proposals, not involving the surrender of the concession, are put forward by the Viceroy's deputies. I am, and shall of course continue to be, in close communication with Mr. Ross throughout the negotiations. He will agree to no modifications of the draft without my consent and I shall agree to no material ones without consulting you.

4. I take this opportunity of acknowledging the receipt of Mr. Lyttelton's secret despatches of the 3rd and 17th November, 1905,* forwarding, for my information, with reference to my despatch of the 22nd September,t copies of correspondence‡ with the Foreign Office on the subject of asking the British and Chinese Corporation to surrender their concession. Sir Ernest Satow had previously been good enough to send me privately a copy of Lord Lansdowne's telegram to him of the 12th November.

I have, &c.,

M. NATHAN,

Governor.

Enclosure 1 in No. 195. PARAPHRASE of further Telegraphic Correspondence with His Majesty's Minister, Peking, and His Britannic Majesty's Consul-General at Canton. CXLV.

GOVERNOR, Hong Kong, to His Britannic MAJESTY'S CONSUL-GENERAL, Canton. (Despatched 10.15 a.m., December 1, 1905.)

As you are aware, the Viceroy has received definite instructions from the Wai- Wu-Pu to start negotiations with the Corporation at once. Can you not suggest to him that, if he is too ill to see Mr. Ross himself, he should negotiate through one of his Secretaries.--NATHAN.

• L.F.F.

↑ No. 148.

↑ No. 158 and 165.

291

CXLVI.

GOVERNOR, Hong Kong, to HS BRITANNIC MAJESTY'S MINISTER, Peking.

(Despatched 11.15 a.m., December 5, 1905.)

Your telegram, No. 23. The Viceroy declines to see Mr. Ross on grounds of ill- ness and has deputed no one to negotiate on his behalf. Mr. Scott says the Viceroy cares nothing about the Wai-Wu-Pu's instructions.

Will you consider what further steps can be taken.-NATHAN.

CXLVII.

HIS BRITANNIC MAJESTY'S MINISTER,-Peking, to HIS BRITANNIC MAJESTY'S CONBUL-GENERAL, Canton. (December 7, 1905.)

Canton-Kowloon Railway.

The Governor of Hong Kong's telegram to me of 5th December. Yesterday, at an interview, the Wai-Wu-Pu promised to telegraph to the Viceroy to negotiate himself with the Agents of the Corporation or appoint a deputy. Please see the Viceroy and urge this matter. Inform Hong Kong-SATOW.

CXLVIII.

GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Canton. (Despatched 12.50 p.m., December 13, 1905.)

Your letter, No. 232. Mr. Ross will arrive in Canton early on Saturday morning. Please endeavour to arrange a meeting with the Viceroy's deputies for that day.

NATHAN.

SIR,

Enclosure 2 in No. 195.

His Majesty's Consulate-General, Canton, December 12, 1905.

I HAVE the honour to acknowledge the receipt of your telegram of the 7th instant, but regret that a slight delay occurred owing to the fact that a mistake in one of the cypher groups necessitated the latter part of the telegram being repeated.

Meantime, on the 9th instant, the Viceroy sent his Secretary to see me and explain that His Excellency was still seriously ill and unable to receive any visitors; and that, under these circumstances, it was impossible for His Excellency to enter into personal negotiations with the British and Chinese Corporation. I urged, how- ever, that in any case His Excellency should nominate a deputy to discuss matters with the Agent of the Corporation and now beg to enclose copy and translation of the reply which I have this day received from the Viceroy in answer to my formal application on the subject.

I am duly communicating with His Excellency the Governor of Hong Kong so that the Agent of the Corporation may come to Canton and meet the two deputies appointed by the Viceroy for the purpose.

During my interview with the Viceroy's Secretary on the 9th instant, the latter assured me that the Viceroy's wish was to secure the cancellation of the whole Canton- Kowloon Railway Agreement and to have the railway constructed by Chinese with Chinese capital only. The Viceroy, he said, desired me to convey an appeal to you privately and confidentially to assist China in this respect, and especially to agree to a substantial increase of the tax on Indian opium, the proceeds of which would be devoted to constructing the line. The Viceroy complained that this position was rendered more difficult by the fact that the French Consul here and the French Minister in Pekin claimed that whatever railway facilities or concessions were granted to British companies the same right should be granted to them in respect of a railway from Kwong Chan Wan into the interior.

18893

201