CO129-343 - Public Offices & Foreign Office - 1907 — Page 623

[This Document is the Property of His Britannic Majesty's Government 617

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the views of the provincial authorities concerned; and we further understand that your Excellencies are prepared to convey to his Excellency Chang Chih-tung an intimation in this sense.

Regarding the present condition of the money market and the high standing of China's credit as favourable to the successful inception of railway undertakings, under guarantee of the Imperial Government, we have the honour to submit for your Excellencies' consideration our suggestion that the provinces which are now con- sidering the construction of railways, and particularly Hupeh, be notified that any proposals, emanating from the provincial authorities or bureaux, for authority to borrow foreign capital for these enterprises, under conditions acceptable to the Chinese Government, will be supported by the Board of Communications. We venture the opinion that if this is done the present unsatisfactory condition of railway undertakings in several provinces will speedily be remedied, and the desired means of communication economically introduced to the immediate benefit of the Central Government and provinces alike.

In conclusion, we have the honour to state that, so soon as the necessary authority for negotiations has been given, the Companies which we represent are prepared to offer liberal terms for the financing and construction of such lines as may be approved by the Board of Communications and the Imperial Government.

We have, &c.

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CHINA RAILWAYS.

CONFIDENTIAL.

[9432]

No. 1.

13726

[March 23.Ferd

07

SECTION 1.

Sir J. Jordan to Sir Edward Grey-(Received March 23.)

(No. 67.) Sir,

Peking, February 4, 1907. WITH reference to my despatch No. 541 of the 23rd December, I have the honour to înclose copy of a despatch, dated the 15th January, which I have received from His Majesty's Consul-General at Canton, respecting the engagement of a British engineer for the Canton-Hankow Railway. As you will observe, Mr. Mansfield has not yet succeeded in securing the appointment of Mr. Smyth, but he is losing no opportunity of urging the justice of our claim to be considered before other nationalities in the appointment of a Deputy Chief Engineer at the Cauton end of the line.

I have, &c.

(Signed)

J. N. JORDAN.

(No. 5.) Sir,

Inclosure in No. 1.

Consul-General Mansfield to Sir J. Jordan.

Canton, January 15, 1907. I HAVE the honour to acknowledge the receipt of your despatch No. 30 of the 30th ultimo, inquiring whether I had been able to ascertain anything further respecting the engagement of a foreign engineer as Deputy Chief Engineer of the Yüch-Han Railway.

At the time of my telegram to you No. 27 of the 29th October last, the prospect of Mr. Smyth's engagement did not seem unfavourable. I had a few days previously, at the instance of his Excellency the Governor of Hong Kong, acquainted Mr. Kuong, the Chief Engineer, with the views of Sir Mathew Nathan, pointing out that it was the consideration extended by the Hong Kong Government which had enabled the repurchase of the concession from the American China Development Company, and that it would certainly be considered an act of ingratitude if any but a British subject were given the appointment of Deputy Chief Engineer, should it be decided to engage a foreigner for this post. I even went so far as to state that such a course would be regarded by other nationalities and ourselves as an intentional slight.

I continued in close communication, largely private, with the Hong Kong authorities and Mr. Kuong until the 28th November, when it became quite apparent that, for the time at any rate, there was no possibility of securing either the engage- ment of Mr. Smyth or of any other first-class British engineer. The double event of the departure of Viceroy Ts'en and the arrival of his successor, Chou Fu, had at once made it evident that the affairs of the Railway Company would be subjected to a thorough overhaul; in fact, Mr. Kuong himself stated, on the date last above given, that the Company was wavering; that a new arrangement was impending; that the President and Vice-President were resigning, and that the Viceroy was putting in new men.

An epitome of the present condition of affairs will be found in the Intelligence Report of to-day's date.

I refrain, since it would be tedious, from giving in detail the reasons advanced by Mr. Kuong for not accepting Mr. Smyth, notwithstanding the high testimonials of which he stood possessed. It is sufficient to say that they were largely quibbles, advanced with the object of enabling him to retire gracefully from an untenable position, since in the then state of affairs he had obviously no power to enter into any engagement carrying even such modest terms as those which Mr. Smyth would have been prepared to accept. These were a salary of 850 dollars a-month with a house allowance, or a round sum of 1,000 dollars, the question of the duration of the agreement being left for personal arrangement between him and Mr. Kuong. I decided, however, not to mention these terms to Mr. Kuong, my original suggestion

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