CO129-331 - Public Offices - 1905 — Page 118

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I have not the experience which would enable me to make many useful suggestions as to the terms which it would be advisable to endeavour to obtain in the concession, but there are one or two local points to which I may draw attention :-

(1.) As regards the purchase of land, this should not be left in the first instance to the Chinese officials, as to do so would give unlimited scope for vexatious delays; the construction Company should be allowed, in the first instance, to deal or negotiate direct with private owners or the Chinese Shansawbwas-if they could not come to an agreement, the price to be settled by the Taotai and Consul at Teng Yueh in concert; public unoccupied lands to be granted free.

(2.) The Company should have the right of prospecting for coal and other minerals for, say, 50 miles on both sides of, and beyond, the line, and of making roads or feeder lines for the same distance. The right of planting trees, to be used as fuel, on barren hills should also be granted.

I attach importance to these conditions, otherwise the cost of fuel on the line may prove very heavy.

(3.) Subject to the general control of the British Company (especially over the cash-box), the officials and natives of West Yüunan might be given an opportunity of investing capital in the concern, and one or more of them, say the Taotai and a leading merchant, might be associated with the directorate so far as the section in China is concerned.

(4.) The Chief Manager should reside at Bhamo and should have full powers, uncontrolled either by Mandarins in China or by Directors resident in Rangoon or else- where, who would not be conversant with local requirements and conditions.

(5.) So far as is possible, the employés of the line in China should be Chinese, and selected youths might be trained in Teng Yueh by the Company for this service.

I have, &c. (Signed) G. LITTON.

The Dreament is the Property of His BMNE

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SOUTH-WEST CHINA.

CONFIDENTIAL.

Sir,

No. 1.

Foreign Office to India Office.

[July 21.J

SECTION 1.

116

Foreign Office, July 21, 1905. 1 AM directed by the Marquess of Lansdowne to transmit to you herewith, for the information of the Secretary of State for India, a copy of a despatch from His Majesty's Consul at Teng Yueh,* calling attention to the project for the construction of a light railway from Bhamo to Teng Yueh, and reporting the work done in regard to the survey of the line from Bhamo to the Chinese frontier under the superintendence of Mr. A. Lilley, the Engineer-in-chief selected for the purpose by the Government of India.

You will observe that in view of the progress made by the French railway Mr. Litton is in favour of pressing forward the final survey of the line; he also recom- mends that to avoid loss of time the negotiations for the concession from the Chinese Government to construct the railway should proceed concurrently with its detailed survey, and that in order to meet any opposition on the part of the local authorities to the surveying operations the nature of this survey should be explained to them.

I am to state that Lord Lansdowne proposes to await Mr. Lilley's Report and the views of the Government of India before taking any action with regard to Mr. Litton's recommendations on the subject.

I ain, &c. (Signed)

F. A. CAMPBELL.

* Mr. Lilton, No. 9, June 11, 1905.

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