392
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tramways thus sanctioned without requiring aid from China in the matter of capital, nor need the Chinese Government guarantee any sums which may in future be required for expenses of construction and working. The actions of the Company from the time of commencing work to its completion will be subject to the following rules.
3. All the material and machinery employed by the Belgo-French Company in the construction of these railways will be exempt from li-kin and customs duties,
4. All documents and acts in respect to the shares of the Company, including interest certificates and transfers of the shares, shall be free of tax.
(The Chinese text is here confused and difficult to translate exactly.) Drawn up by the Railway Contractor in 1900.
Copy of the Complete Regulations.
I. (1.) Survey. The railway will start from Canton city and proceed viâ Samshu, Kuang-li Shao Ching, Te Ching, and all important cities and towns passed en route to Wuchou Fu in Kuang-hsi. The line, speaking generally, will follow the left bank of the West River. If in the interests of the population it is necessary that it should pass through cities and towns on the right bank, or if by reason of mountains the line is found to be difficult to lay on the left bank, it will follow the right bank.
The tramway will start from the railway station to carry goods and passengers from within and without the city, proceeding along the bank of the Canton River via all important places to a terminus at Whampoa.
II. (2.) Construction. The work of construction by the Company must begin within two years of the day on which Imperial sanction is received, and its completion must not take more than six years.
3. Land purchased by the Company will be sufficient for the embankment of a double line. But a single line with the necessary sidings may be constructed as a preliminary, provided that the foundation for the double line be laid across bridges, through tunnels, and upon embankments.
In places where commerce is flourishing room for double lines may be specially made, and if at any future time it is found that a single line is insufficient the second line may be added. The Superintendent of Works will, before building the railway and stations, first notify the authorities, who will mark the land out with boundary stakes, and the people will be compelled to sell. The survey of the land and its surrender by the people will be in accordance with Chinese law and the Regulations for Northern Railways. If in the line of railway there is any Government land, Imperial or Provincial, the Company can make use of it for a period while they control the railway without payment of rent.
At the termini, the Company can buy land for stations, residences, godowns, offices, machine-shops, &c.; if the land is in the hands of the Government, it will be left for the Company to make use of it as they choose.
4. The gauge of the railway will be 1 metre,
III. (5.) The Company will control the carriage of goods and passengers for a period of seventy-five years, reckoning from the day when trains begin to run.
(6.) At the conclusion of the above period the railways, as well as all the stations and works, and all the tools and horses employed, will become the property of the Chinese Government. All stores of coal, oil, &c., if sold by the Company, will be purchased by the Chinese Government; and, if the latter wish to buy, the Company must sell. The land which stations and workshops occupy, and all buildings, will become the property of the Chinese Government upon the expiration of the period of seventy-five years.
But land separately purchased by the Company and houses separately built by them and not pertaining to the railways and tramways, as well as the electric stations, will remain the property of the Company, and the Chinese Government cannot take possession of them against the Company's will.
IV. (7.) Purchase of the Railway. The railway and tramways may after twenty years' working be purchased by the Chinese Government, the price to be calculated in the following manner:-
The total amount of the profits during the fifteenth to twentieth year of its working to be divided by 5 so as to get the average yearly profits. To this will be added interest at 2 per cent., and the sum thus arrived at will be considered as interest, and the capital will be reckoned from this at 100 for 3. (Example given.) Payment must be made by the Chinese Government three months after purchase of all the properties mentioned in section 6 of these Regulations.
3
If the Chinese Government do not buy at the end of twenty years, they can do so at the end of any subsequent period of five years on the same basis as above.
V. (8.) If the Company fail to commence or complete the work within the respective limits, the contract is null and void. But if within the period named obstacles arise to hinder the work the period can be extended.
VI. (9.) Tariff. The railway rates during the period of seventy-five years while the Company is receiving the money obtained by the sale of tickets and in freight for goods will be based on the tariff of the Northern Railway. In times of peace the Company will only charge half-rates for troops and horses and material of war. When famine is reported by the local authorities and relief work is being carried on, half-rates only are to be charged for food-stuffs.
VII. (10.) Special Rules. In time of trouble, the Chinese military authorities can attach the cars, &c., of the Company for the carriage of troops and armaments. Compensation of charges to be paid to the Company will be settled by discussion after the signature of this document.
VIII. (11.) Royalties. Ten per cent. of the profits will go to the Chinese Government. But the amount allowed as interest on capital will not be included as profits in this calculation.
IX. (12.) The railway and tramways may be sold by the Company to another Company. The latter after purchase will also be subject to these Regulations.
Drawn up by the contractors in 1900.
Inclosure 2 in No. 1.
Acting Consul-General Scott to Sir E. Satow.
(No. 34. Confidential.) Sir,
Canton, October 16, 1901. WITH reference to my despatch No. 25, Confidential, and the French railway claims in the Canton Province therein mentioned, I have now the honour to inclose herewith copy and translation of two documents which have just reached me indirectly, being copies of a note and its inclosures sent by the French Consul to the Viceroy recently on the subject of the construction by a Franco-Belgian Company of a railway from Canton to Wuchow and of tramways in connection therewith.
It would appear that some arrangement for these Concessions had been concluded with Li Hung-chang when Viceroy in Canton in 1900, and that an attempt is now being made to secure Imperial sanction and carry out the scheme. The name of the present Viceroy, Tao Mo, has been substituted for that of Li Hung-chang as the party with whom the arrangement has been made, apparently with a view to preparing the way for this Viceroy's more ready assent. The Viceroy, however, has in no way acknowledged any liability on his part under the Agreement and has, after pressure, only promised to refer the matter to the Central Government when the Court has returned to Peking.
I would point out that if this Agreement is allowed to be carried out, the French authorities will have the monopoly of railway communication connecting the chief centres of trade along the route to Kwangsi and in the Canton delta. I would further point out that, under one of the terms of the Agreement, material required for the railway and tramways will be admitted duty free. According to such a stipulation, the French will not fail to include in this category all rice and other numerous articles ostensibly for the use of the Railway; and such a facility, if granted, cannot but have a detrimental effect on British imports into Canton.
In connection with this Railway Agreement, the question naturally arises, how a statesman of the astuteness with which Li Hung-chang is usually credited, could have been induced to make such a one-sided arrangement, and that, too, so directly opposed to the Chinese Mining and Railway Regulations recently promulgated by Edict.
I have, &c. (Signed) JAMES SCOTT.
392
2
tramways thus sanctioned without requiring aid from China in the matter of capital, nor need the Chinese Government guarantee any sums which may in future be required for expenses of construction and working. The actions of the Company from the time of commencing work to its completion will be subject to the following rules.
3. All the material and machinery employed by the Belgo-French Company in the construction of these railways will be exempt from li-kin and customs duties,
4. All documents and acts in respect to the shares of the Company, including interest certificates and transfers of the shares, shall be free of tax.
(The Chinese text is here confused and difficult to translate exactly.) Drawn up by the Railway Contractor in 1900.
Copy of the Complete Regulations.
I. (1.) Survey.The railway will start from Canton city and proceed viâ Samshu, Kuang-li Shao Ching, Te Ching, and all important cities and towns passed en route to Wuchou Fu in Kuang-hsi. The line, speaking generally, will follow the left bank of the West River. If in the interests of the population it is necessary that it should pass through cities and towns on the right bank, or if by reason of mountains the line is found to be difficult to lay on the left bank, it will follow the right bank.
The tramway will start from the railway station to carry goods and passengers from within and without the city, proceeding along the bank of the Canton River via all important places to a terminus at Whampoa.
II. (2.) Construction.-The work of construction by the Company must begin within two years of the day on which Imperial sanction is received, and its completion must not take more than six years.
3. Land purchased by the Company will be sufficient for the embankment of a double line. But a single line with the necessary sidings may be constructed as a preliminary, provided that the foundation for the double line be laid across bridges, through tunnels, and upon embankments.
In places where commerce is flourishing room for double lines may be specially made, and if at any future time it is found that a single line is insufficient the second line may be added. The Superintendent of Works will, before building the railway and stations, first notify the 'authorities, who will mark the land out with boundary stakes, and the people will be compelled to sell. The survey of the land and its surrender by the people will be in accordance with Chinese law and the Regulations for Northern Railways. If in the line of railway there is any Government land, Imperial or Provincial, the Company can make use of it for a period while they control the railway without payment of rent.
At the termini, the Company can buy land for stations, residences, godowns, offices, machine-shops, &c.; if the land is in the hands of the Government, it will be left for the Company to make use of it as they choose.
4. The gauge of the railway will be 1 metre,
III (5.) The Company will control the carriage of goods and passengers for a period of seventy-five years, reckoning from the day when trains begin to run.
(6.) At the conclusion of the above period the railways, as well as all the stations and works, and all the tools and horses employed, will become the property of the Chinese Government. All stores of coal, oil, &c., if sold by the Company, will be purchased by the Chinese Government; and, if the latter wish to buy, the Company must sell. The land which stations and workshops occupy, and all buildings, will become the property of the Chinese Government upon the expiration of the period of seventy-five years.
But land separately purchased by the Company and houses separately built by them and not pertaining to the railways and tramways, as well as the electric stations, will remain the property of the Company, and the Chinese Government cannot take possession of them against the Company's will.
IV. (7.) Purchase of the Railway.The railway and tramways may after twenty years' working be purchased by the Chinese Government, the price to be calculated in the following manuer:-
The total amount of the profits during the fifteenth to twentieth year of its working to be divided by 5 so as to get the average yearly (sic) profits. To this will be added interest at 2 per cent., and the sum thus arrived at will be considered as interest, and the capital will be reckoned from this at 100 for 3. (Example given.) Payment must be made by the Chinese Government three months after purchase of all the properties mentioned in section 6 of these Regulations.
3
If the Chinese Government do not buy at the end of twenty years, they can do so at the end of any subsequent period of five years on the same basis as above.
V. (8.) If the Company fail to commence or complete the work within the respective limits, the contract is null and void, But if within the period named obstacles arise to hinder the work the period can be extended.
VI. (9.) Tariff-The railway rates during the period of seventy-five years while the Company is receiving the money obtained by the sale of tickets and in freight for goods will be based on the tariff of the Northern Railway. In times of peace the Company will only charge half-rates for troops and horses and material of war. when famine is reported by the local authorities and relief work is being carried
In years rates only are to be charged for food-stuffs.
on, half-
VII. (10.) Special Rules.-In time of trouble, the Chinese military authorities can attach the cars, &c., of the Company for the carriage of troops and armaments. pensation of charges to be paid to the Company will be settled by discussion after the Com- signature of this document.
VII. (11.) Royalties.-Ten per cent. of the profits will go to the Chinese Govern- ment. But the amount allowed as interest on capital will not be included as profits in this calculation.
IX. (12.) The railway and tramways may be sold by the Company to another Company. The latter after purchase will also be subject to these Regulations.
Drawn up by the contractors in 1900.
Inclosure 2 in No. 1.
Acting Consul-General Scott to Sir E. Satow.
(No. 34. Confidential.) Sir,
Canton, October 16, 1901. WITH reference to my despatch No. 25, Confidential, and the French railway claims in the Canton Province therein mentioned, I have now the honour to inclose herewith copy and translation of two documents which have just reached me indirectly, being copies of a note and its inclosures sent by the French Consul to the Viceroy recently on the subject of the construction by a Franco-Belgian Company of a railway from Canton to Wuchow and of tramways in connection therewith.
It would
appear that some arrangement for these Concessions had been concluded with Li Hung-chang when Viceroy in Canton in 1900, and that an attempt is now being made to secure Imperial sanction and carry out the scheme. The name of the present Viceroy, Tao Mo, has been substituted for that of Li Hung-chang as the party with whom the arrangement has been made, apparently with a view to preparing the way for this Viceroy's more ready assent. The Viceroy, however, has in no way acknowledged any liability on his part under the Agreement and has, after pressure, only promised to refer the matter to the Central Government when the Court has returned to Peking.
I would point out that if this Agreement is allowed to be carried out, the French authorities will have the monopoly of railway communication connecting the chief centres of trade along the route to Kwangsi and in the Canton delta. I would further point out that, under one of the terms of the Agreement, material required for the railway and tramways will be admitted duty free. According to such a stipulation, the French will not fail to include in this category all rice and other numerous articles ostensibly for the use of the Railway; and such a facility, if granted, cannot but have a detrimental effect on British imports into Canton.
In connection with this Railway Agreement, the question naturally arises, how a statesman of the astuteness with which Li Hung-chang is usually credited, could have been induced to make such a one-sided arrangement, and that, too, so directly opposed to the Chinese Mining and Railway Regulations recently promulgated by Edict.
I have, &c. (Signed) JAMES SCOTT.
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