2
He stated that Sheng Hsüan-huai and Wu Ting-fang felt the resumption of the American Concession as a disgrace to them, who were chiefly concerned in negotiating it; they had, therefore, supported the party that advised the transfer of that Concession from the China Development Company to some other American Syndicate. These opponents made common cause with the Hunanese and the students from Japan, who clamoured for the employment of China's own resources only, and denounced all railway loans as surrenders of their country's sovereign rights. When to these obstacles was added the Belgo-French claim, the metropolitan authorities, who were mostly more skilled in literary matters than in practical affairs, took fright, and forced the Wai-wu Pu to interdict all loans whatever for building the Hankow-Canton line. The Viceroy protested that his proposed loan would not mortgage the line, and would leave its working and control in Chinese hands, but it was in vain.
His Excellency Chang then telegraphed the terms of the loan for the Hupei section of the Szechuan-Hankow Railway, laid stress on Hupei's inability to find the necessary capital, besides bearing a share of the cost of redeeming the American Concession, pointed out that the Szechuan line would be useless without an outlet through Hupei, and that the Chinese Government had promised to employ British capital for this line.
The Wai-wu Pu replied that subsequent to that promise the throne approved the Szechuan Viceroy's scheme to build the whole line with Chinese capital; that France claimed to have had an understanding with Szechuan that it should give aid in building this railway, while Germany protested that the Deutsch-Asiatische Bank had first proffered a loan (ignoring the fact that the price was 92¼, and the Viceroy said he must be free to accept better offers); and that to authorize this loan would be cited as a precedent for other provinces. The Board therefore would not recognize any Agreement made by the Viceroy, who appealed to Ch'i Hung-ch'i, as a Hunanese of weight and experience. The reply, however, was that while his Excellency Ch'i fully approved of the Viceroy's proposed loans, he dare not, in the face of the clamour for keeping China for the Chinese, "open his mouth."
Under these circumstances his Excellency was reluctantly forced to give up all idea of borrowing for the present. He thoroughly appreciated the fairness of our terms, and knew that six months hence a loan at even 94 might be quite impossible; but unless the Wai-wu Pu at least refrained from opposition he could not get the Imperial sanction, which was as indispensable for pledging provincial revenues as for making bonds saleable. He would let me know as soon as he saw a chance of getting a loan through, and he would not let our competitors profit by their obstructive tactics.
Finally, Mr. Wang was told to suggest that the best hope lay in letting the Wai-wu Pu calm down, and in refraining from pointing out the unwisdom of its present attitude.
I have &c.
(Signed)
E. H. FRASER.
3
65
2
He stated that Sheng Hsüan-huai and Wu Ting-fang felt the resumption of the American Concession as a disgrace to them, who were chiefly concerned in nego- tiating it; they had, therefore, supported the party that advised the transfer of that Concession from the China Development Company to some other American Syndicate. These opponents made common cause with the Hunanese and the students from Japan, who clamoured for the employment of China's own resources only, and denounced all railway loans as surrenders of their country's sovereign rights. When to these obstacles was added the Belgo-French claim, the metropolitan authorities, who were mostly more skilled in literary matters than in practical affairs, took fright, and forced the Wai-wu Pu to interdict all loans whatever for building the Hankow-Canton line. The Viceroy protested that his proposed loan would not mortgage the line, and would leave its working and control in Chinese hands, but it was in vain.
His Excellency Chang then telegraphed the terms of the loan for the Hupei section of the Szechuan-Hankow Railway, laid stress on Hupei's inability to find the necessary capital, besides bearing a share of the cost of redeeming the American Concession, pointed out that the Szechuan line would be useless without an outlet through Hupei, and that the Chinese Government had promised to employ British capital for this line.
The Wai-wu Pu replied that subsequent to that promise the throne approved the Szechuan Viceroy's scheme to build the whole line with Chinese capital; that France claimed to have had an understanding with Szechuan that site should give aid in building this railway, while Germany protested that the Deutsch-Asiatische Bank had first profferred a loan (ignoring the fact that the price was 924, and the Viceroy said he must be free to accept better offers); and that to authorize this loan would be cited as a precedent for other provinces. The Board therefore would not recognize any Agreement made by the Viceroy, who appealed to Ch'i Hung-ch'i, as a Humanese of weight and experience. The reply, however, was that while his Excellency Ch'u fully approved of the Viceroy's proposed loans, he dare not, in the face of the clamour for keeping China for the Chinese,
open his mouth."
Under these circumstances his Excellency was reluctantly forced to give up all idea of borrowing for the present. He thoroughly appreciated the fairness of our terms, and knew that six months hence a loan at even 94 might be quite impossible; but unless the Wai-wn Pu at least refrained from opposition he could not get the Imperial sanction, which was as indispensable for pledging provincial revenues as for making bonds saleable. He would let me know as soon as he saw a chance of getting a loan through, and he would not let our competitors profit by their obstructive tactics.
Finally, Mr. Wang was told to suggest that the best hope lay in letting the Wai-wu Pu calm down, and in refraining from pointing out the unwisdom of its present attitude.
I have &c.
(Signed)
3
E. H. FRASER.
ショ
3
65
rch
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