CO129-314 - Public Offices - 1902 — Page 242

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No. 3.

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Acting Consul-General Scatt to the Marquess of Lansdowne.-(Received March 3.)

(No. 9.) My Lord,

WITH reference to the French demands for Railway Concessions in this province,

Canton, January 21, 1902. I have the honour to inclose herewith copy of my despatch No. 4 of the 21st January, 1902, to His Majesty's Minister in Peking, reporting the attitude of the Viceroy and the Central Government regarding this question.

I have, &c.

(Signed)

Inclosure in No. 3.

JAMES SCOTT.

(No. 4. Confidential.) Sir,

Acting Consul-General Scott to Sir E. Satow.

Canton, January 21, 1902.

I BEG to report, in continuation of my despatches Nos. 25 and 34 of the 17th Sep- tember and 13th October respectively, in connection with Railway Concessions in Kuang Tung Province, that I learn from reliable sources that the French Consul is pressing the Viceroy to grant immediate permission to commence operations on a line from Canton to Wuchow under the Railway Agreement concluded with Li Hung-chang, when Viceroy in Canton, in 1900.

It appears that the Viceroy has been in communication with the Central Government on the subject, with a view to having the whole Agreement abrogated. But, judging from the reply received by him from Peking, the Viceroy concludes that the Central Govern- ment find themselves compelled to recognize the Concession in some measure; for his instruction refer to a rearrangement of details and not a reversal of the whole Concession. The Viceroy has pointed out to the French Consul that, between Canton and Samshui, the line he now applies for would traverse the region over which the American Syndicate for the Canton-Hankow Railway already hold powers as prior concessionnaires duly recognized by Imperial Decree.

The Viceroy further declares that the terms of the Agreement, as they stand at present, are impossible; and that his orders from Peking are to have them properly modified and revised. His Excellency, I understand, intends to make this revision so drastic as to practically block the whole Concession if possible.

The French Consul has also informed the Viceroy that as regards the Canton-Samshui branch of the line, the French concessionnaires are in negotiation with the Canton-Hankow Railway Syndicate, and expect to be in a position to make terms with them independently of the Chinese authorities. Meantime, he is specially pressing the Viceroy to allow the construction of tramways in and around Canton, as stipulated for in Li Hung-chang's Agreement to be commenced without further delay.

I have taken opportunity to suggest to the Viceroy to proceed with care and caution. I have pointed out that in the present disturbed condition of the province, the con- struction of railways, and the attendant risk of attacks upon the works and employés by marauders and others, would certainly furnish authorities to land and station troops, and otherwise acquire a dominating influence in the an opportunity to the French province.

I have, &c. (Signed) JAMES SCOTT.

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