[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[14418]
No. 1.
[May 4.]
SECTION 2.
(No. 143.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received May 4.)
Peking, March 19, 1907. SINCE the date of my last despatch on the subject (No. 104 of the 4th instant), two meetings have taken place between the Chinese and foreign negotiators of the Tien-tsin-Yang-tsze Railway Agreement, the Minutes of which I have the honour to transmit to you, together with copy of a letter which Messrs. Cordes and Bland addressed to the Chinese Delegates after the first meeting of the 9th instant. In this they placed on record an assurance given them by his Excellency Tang Shao-yi, to the effect that if the Syndicate abandoned the system of control by Boards of Commis- sioners and would adopt the administrative arrangements of the Canton-Kowloon Agreement, they would be allowed to retain the full benefit of the financial advantages secured to them by the Tien-tsin-Yang-tsze Preliminary Agreement.
At the subsequent meeting which took place on the 16th instant it became evident that the Chinese Delegates had no definite instructions, and that it would be futile to continue the negotiations unless the Board of Communications in Peking made itself responsible for their being conducted by duly accredited Agents on the Chinese side in the future.
Messrs. Cordes, and Bland accordingly appealed to the German Minister and myself, and suggested, as the only means of avoiding indefinite delay and fruitless discussion, that the negotiations should be transferred to the Board of Communications in Peking, where his Excellency Tang would be able to exercise a direct supervision over them.
Count Rex and I both having appointments at the Wai-wu Pu this afternoon, we agreed to take advantage of the opportunity to make a verbal representation on the subject. This we did to his Excellency Tang, who was the only Minister present,
Count Rex pointed out the interminable delay which had already taken place in connection with the negotiations, and expressed his belief that, as conducted at present, they would never lead to any result.
After hearing our statement, his Excellency Tang informed us that the Chinese Delegates had themselves, in a letter which he had just received, suggested the appointment of a direct representative of the Board of Communications to attend future meetings, and he considered that this arrangement would greatly facilitate the course of the negotiations.
We decided to accept this proposal as a provisional solution of the difficulty; and it was also agreed that the Minutes of all meetings should be formally confirmed and made definitely binding on both parties.
In my telegram No. 50 of yesterday's date I had the honour to submit you a brief statement of the present situation as regards the Tien-tsin-Chinkiang Railway nego tiations and the manner in which it appeared to me to affect the Soochow-Ningpo extension of the Shanghae-Nauking Railway. This latter question was to have been resumed after the conclusion of the Canton-Kowloon Railway Agreement, but for the moment it seems to be receiving less attention than the Tien-tsin-Yang-tsze negotia- tions, which are being pressed with equal energy by both Mr. Cordes and Mr. Bland. I have frequently drawn the latter's attention to the apparent neglect of the Soochow- Ningpo line and the danger of its being interpreted unfavourably later on.
Mr. Bland has generally replied that the resumption of the latter negotiations is primarily a matter for His Majesty's Government, and has given me the impression that, from a financial point of view, the Tien-tsin-Yang-tsze line is of even greater importance to his employers than the extension of the Shanghae-Nanking Railway. He points out, and in this I agree with him, that the modifications which have been introduced into the Tien-tsin-Yang-tsze Agreement have practically removed the political objections which attached to the undertaking in its original form, and he holds that the railway will benefit British quite as much as German interests. I may say that this view seems to be shared by some of the leading British merchants at Tien-tsin, who say that they are
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