CO129-338 - Public Offices & Others - 1906 — Page 163

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railway cannot be held by British subjects, I will

forward to you a copy of the Governor General's com-

munication. I took the opportunity to repeat that,

even as regards railways altogether in the interior,

such as the projected Yunnan-Ssuch'uan line (from Yun-

nanfu to Sulfu), I considered that the policy of ex-

cluding foreign capital is suicidal. The sum named

in the prospectus of the Company now under discus-

sion, twenty million taels (or, say, three millions

sterling) would not be sufficient for a line of 400

"

miles through difficult country, while the Chinese

have not yet acquired the necessary experience to en-

able them to undertake so large a work unaided.

I may add that the Governor General's delegates

told me that His Excellency recognizes that Great Eri-

tain is entitled to equal treatment in Yunnan with

France, and that, as far as this rests with him, he

would most willingly accord it. But they appeared

to think that a light railway from the Burma frontier

to T'engyueh was not altogether in the same category

as the French metre-gauge line from Tongking to Yun-

nanfu