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312

No. 203.

FOREIGN OFFICE to COLONIAL OFFICE.

(Received January 30, 1906.)

The Under-Secretary of State for Foreign Affairs presents his compliments to the Under-Secretary of State for the Colonies, and, by direction of the Secretary' of State, transmits herewith copy of the under-mentioned paper.

Foreign Office,

January 29, 1906.

DESCRIPTION OF ENCLOSURE,

Name and Date.

Bubject.

Bir E. Satow, No. 415, Peking, November 30, 1905 French enterprise in China.

(No. 415.) MY LORD,

Enclosure in No. 203.

Sir E. SATOW to the MARQuess of LanSDOWNE.

British Legation, Peking, November 30, 1905. I HAVE the honour to enclose, herewith, translation of a paragraph from a Chinese newspaper, relating a conversation which the French Deputy, Monsieur Deloncle, had with the Wai Wu Pu when he was here. It sounds very like the truth, and resembles, to a certain extent, what Monsieur Deloncle said to me himself, though the line he took with me was that while France would be ready to find the money for building railways, she would be quite willing that we should supply the material and engineers. That was rather too plausible, I thought. He developed at great length his theory that England and France should pull together in China for the common defence of their interests.

The newspaper of which the paragraph is an extract frequently shows that it has confidential relations with the Wai Wu Pu.

318

The Board replied that there had only been a loan of £1,100,000 from England for redeeming the concession, and that they had heard nothing of any loan of £3,000,000 for constructing the line.

Monsieur Deloncle said the Foreign Powers as a rule do not allow the Wai Wu Pu to know of their dealings with the Provincial Authorities, but France would be sure to arrange matters satisfactorily with the Wai Wa Pu first before entering on any undertakings,

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No. 204.

THE BRITISH AND CHINESE CORPORATION, LIMITED, to COLONIAL

SIR

OFFICE.

(Received January 30, 1906.)

[Answered by No. 206.]

3, Lombard Street, London, E.C., January 29, 1906. Canton-Kowloon Railway.

We shall feel greatly obliged if you will submit to the Earl of Elgin the copy documents forwarded herewith, viz. :-

Minutes of first meeting at Canton on the 18th December, 1905, between the Viceroy of Canton's Deputies and the Representative of the British and Chinese Corporation, His Britannic Majesty's Vice-Consul being present. Minutes of second meeting at Canton on the 19th December, 1905. Letter from Viceroy of Canton to Consul-General.

The Earl of Elgin will see from the documents that the Viceroy of Canton has not only refused to consider the draft Final Agreement for the Canton-Kowloon Rail- way Loan, submitted to him by our Representative, but has demanded the cancella- tion of the Preliminary Agreement, the validity of which is unimpeachable.

The facts are probably known to the Earl of Elgin, and having regard to the gravity of the situation, we trust that he will be so good as to cause us to be informed what steps are being taken to protect our interests.

We beg to add that we have also addressed the Foreign Office on the subject.

. We are, &c.,

THE BRITISH AND CHINESE CORPORATION, LIMITED,

W. KESWICK,

The Marquess of Lansdowne, K.G.,

&c.,

&c.,

&c.

I have, &c.,

Ernest SatoW.

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No. 205.

Chairman.

(Translation.)

From the " SHUNTIEN SHIH PAO of November 29, 1905. France agitates for a loan to China. The French Deputy, Monsieur Delonole, together with the French Minister, Monsieur Dubail, and interpreters, has called on the Wai Wu Pu. He said that as France in her Far Eastern policy was not covetous of Chinese territory there was no question of partitioning China. He had been commissioned by the French President to investigate trade affairs in China. Every year France had surplus funds to the extent of 1,050,000,000 francs, which, as only three per cent. interest could be obtained in France, she was very anxious to lend to China for railway, mining, and other industrial enterprises, and so obtain larger profits. Of course, if China was undertaking these enterprises herself, there was no need for him to mention this, but if China should borrow foreign capital it was only fair that she should spread her loans among various countries. China had now bought back the Yueh-Han concession from America, although that country was very distant, and had no selfish designs on Chinese territory; but he had lately learnt that £3,000,000 had been borrowed from England to construct this line, although that was more dangerous than borrowing from America, because the line lay so near Hong Kong.

SIR,

CROWN AGENTS to COLONIAL OFFICE.

(Received January 31, 1906.) [Answered by Nos. 209 and 238.]

Whitehall Gardens, London, S.W., January 30, 1906.

Hong Kong Kowloon-Canton Railway,

In continuation of our letter of the 18th December,† I have now the honour to transmit, for the information of the Secretary of State, a copy of the Consulting Engineers' report on the survey report and estimates submitted by Mr. Bruce for the British section of the Kowloon-Canton Railway, which they estimate can be built and equipped on the low level eastern route for the sum of £500,000.

2.

We have since discussed the whole question personally with Sir John Wolfe Barry, and especially the system of construction to be adopted, and I enclose a copy of the correspondence which has passed between us.

3. I also enclose a copy of a further correspondence we have had with the Consulting Engineer's relative to the gauge and weight of rails, the staff which would

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• See Enclosures 2 and 3 in No. 20.

† No. 190.

YR

PUBLIC RECORD OFFICE

Reference :-

TEC.O. 882

6 PUBLIC RECORD OFFICE, LONDON

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