[This Document is the Property of His Britannic Majesty's Government.]
2
aware, the capital to build the line from Swatow to Chao-chou-fu has been mainly subscribed by Chinese in the Straits and in Java. Japanese engineers are constructing the line, and we understand that some 200 Japanese all told are employed upon it in various capacities.
The experiment is being watched with the keenest interest by the Chinese, and it appears probable that, in the event of success, there will be a powerful demand from the more enlightened and wealthier classes all over the Empire to be allowed to build, under like conditions, their own railways wherever required. On the success or failure of this little enterprise would seem to depend the future course of the develop- ment of railway building in China. In the event of success, we may expect to see increased opposition offered both by officials and people to any future schemes for building railways with foreign capital.
In view of this, the importance of pressing ahead with whatever preliminaries are still necessary to prepare the way for the loan required to build the Kowloon-- Canton line, in order to have it ready for floatation az a favourable moment, has become increasingly apparent. Hence our constant representations on this subject. Our idea was, and is, that if the British and Chinese Corporation could get in first with their line to Canton, the idea of starting an opposition port would receive considerable discouragement, and the movement on foot, as described, would suffer a severe check.
On the head of this came positive information that the Americans were attempting to obtain a Concession for an open port to serve as a sea terminus to their Hankow to Canton line, From the foregoing it might appear that they would be likely to encounter Chinese opposition, and possibly they may. At the same time it is equally open to any one to surmise that they may find it couvenient to join forces with the Chinese on some mutually advantageous business basis. Our information from one source colours this theory. From another we hear that the American-China Develop- ment Company are trying to get the Concession clear for themselves under a clause in their original Agreement providing for access to the sea. There would seem to be two groups of Americans at work, but there is some doubt about this. There is, however, no doubt at all about the truth of the statement made in our telegram of the 31st. "Americans endeavouring to arrange for deep water port near Whampoa as terminus Canton-Hankow line,'
If there had been any doubt about the matter, our message would have been couched in different terms. Often it is not possible to obtain precise information when it may, nevertheless, be advisable to utter a warning note, and in cases of this kind we shall always take the precaution of using guarded language calculated to make clear to you the uncertain nature of our information. In this case there was no doubt, and we therefore telegraph a plain statement of fact. When we adopt this course, we trust that you will give us credit for having something more to go upon than mere
rumour.
As regards the railway negotiations in progress at Peking, we trust that the British and Chinese Corporation will not fail to take into consideration the danger to this Colony arising out of delay.
AFFAIRS OF CHINA,
CONFIDENTIAL.
in 18416
No. 1.
C. O.
19604
Rec [REG!
[May 23.]
JUN 05
SHOTION 2.
British and Chinese Corporation to Foreign Office.-(Recieved May 23.)
Sir,
3, Lombard Street, London, May 22, 1905. IN concluding our letter to you of the 18th instant in reply to your letter of the 16th idem we stated that we were telegraphing to China for information respecting the Canton-Kowloon Railway negotiations.
We now beg leave to acquaint you, for the information of the Marquess of Lans- downe, that we have received the following reply from Messrs. Jardine, Matheson, and Co., dated Shanghae, the 20th instant :-
Referring to your telegram of the 18th. We have received a telegram from C. H. Ross (Peking). The British Minister submitted our proposal to the Wai-wu Pu, but before proceeding with the negotiations they wish to consult with Sheng Kung Pao, who arrived Wednesday last, now visiting the Dowager Empress. We expect to make progress in about a week or two, but it continues very uncertain with whom will negotiate."
We are greatly disappointed that so much delay is taking place at Peking, and that we are still in a condition of uncertainty as to the negotiations, although our past experience, and especially our knowledge of Sheng Kung Pao, should have prepared us for infinite procrastination.
Rumoured movements in the direction of railway construction to unite Canton and Whampoa point to the urgency of pressing to the utmost the negotiations we are engaged upon to a conclusion, and we hope His Majesty's Minister at Peking will be good enough to continue to give the Corporation's representative at Peking the benefit of his valuable support and assistance in overcoming difficulties and concluding the final Agreement.
(1987 -2]
芯
We are, &c.
(Per The British and Chinese Corporation, Limited),
(Signed) W. KESWICK, Chairman,
[
I am, &c.
(Signed)
M. STEWART, Hon. Secretary.
42
Lo.
Son Endless I "Allanah br.184163
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