CO129-330 - Public Offices - 1905 — Page 321

1

SOUTH-WEST CHINA.

CONFIDENTIAL.

3162 [December 31.];

Pro SECTION 25

314

(No. 383.) My Lord,

No. 1.

Sir E. Satow to the Marquess of Lansdowne.-(Received December 31.)

Peking, November 9, 1904.

I HAVE lately received a despatch from His Majesty's Consul-General at Yünnan- fu, inclosing the copy of a communication addressed on the 12th September to the Government of Barmah, in which he strongly urges that an application be made to the Chinese Government for the concession of a railway from Burmah via Tali to Yunnan- fu. Your Lordship will also have received a copy of this communication.

I have the honour to inclose a short Memorandum, drawn up by the Honourable L. D. Carnegie from recent correspondence on the above subject, which I have sent to Mr. Wilkinson, pointing out to him that, under the present circumstances, it appears useless for me to bring the matter again to the attention of the Foreign Office, especially in view of your Lordship's telegram No. 112 of the 11th August last.

I have, &c.

(Signed) ERNEST SATOW.

Inclosure in No. 1.

Memorandum respecting the proposed Lashio (Burmah) Tali-fu-Yünnan-fu Railway Concession.

IN March 1900 the Government of India recommended that work on the rail beyond Lashio should cease.

January 24, 1902, Secretary of State for India forwarded to Indian Government a recommendation from the Liverpool Chamber of Commerce for carrying railway into Yünnan. Indian Government pointed out that such a railway must have as an object either (a) a town or towns in Yünnan, or (b) a further extension to a town or towns in Szechuen. Objection to (a) was probable dearth of freight to make undertaking pay (Litton and others contradict this, see section 10 of Memorandum), and to (b) cost of construction, which places the scheme "beyond the pale of practical possibilities."

January 1903, Secretary of State desired Indian Government to survey thoroughly the districts between Burmah railways and Chinese frontier. Latter replied that instructions were too vague, and, moreover, that the cost of such surveys would be money wasted, as they would have to be done over again if railway was really to be

made.

Secretary of Government of Burmah to Indian Government on the 29th June, 1904, stated that, after careful examination, Sir H. Barnes had arrived at the conclusion that the line from Lashio to Yunnan-fa, vià Tali, and, perhaps, on to Szechuen, was not financially practicable," nor "within a measureable distance of construction in the near future.'

He agreed with views of Indian Government in regard to cost of construction.

On the 30th June, 1904, Consul-General Wilkinson telegraphed that on latest French railway plans a branch to Tali was indicated, and he urged that a concession for a line, Burmah-Tali-Yunnan-fu, should be applied for.

This telegram was repeated to Foreign Office and India, and former was asked if action recommended by Air. Wilkinson should be taken.

Foreign Office replied that we cannot ask for a concession unless capital is forthcoming for construction, but that, if French apply for branch lines towards Burmah frontier, Chinese Government should be reminded of our right to equality of treatment in regard to railways in Yünnan.

On the 3rd November, 1904. a despatch was received from Mr. Wilkinson, containing copy of a despatel addressed to the Government of Burmah, again urging that above-mentioned concession be applied for.

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