[This Document is the Property of His Britannic Majesty's Government.] 338
CHINA RAILWAYS,
CONFIDENTIAL.
[19893]
No. 1.
24463
[June 17.]'
SECTION 4.2 6 11 JUL 07
Sir J. Jordan to Sir Edward Grey.-(Received June 17.)
(No. 209.)
Peking, May 1, 1907, Sir,
WITH reference to your telegram No. 39 of the 13th ultimo, I have the honour to report that I arranged an interview between his Excellency Tang Shao-yi and Mr. Bland for the express purpose of discussing and arranging the outstanding questions connected with the Shanghae-Nanking Railway.
The interview, at which I was present, took place yesterday, and I have the honour to transmit to you a Memorandum of the proceedings prepared by Mr. Bland.
A copy of Mr. Bland's letter to his Excellency Tang of the 31st December last is likewise inclosed.
I have, &c. (Signed)
Inclosure 1 in No. 1.
J. N. JORDAN.
MEMORANDUM of a Conversation with his Excellency Tang Shao-yi, in regard to the proposed modification of the Shanghae-Nanking Railway's System of Administration, and to the Settlement of various Matters outstanding in connection therewith.
IN accordance with an arrangement kindly made by Sir John Jordan, I attended, with his Excellency, at the private residence of his Excellency Tang Shao-yi this morning, to arrange, if possible, for settlement of the various questions referred to in my letter of the 31st December last.
His Excellency Tang, referring to that letter, observed that it would be impossible to apply to the Throne for authority for a further series of bonds on the grounds stated by the Corporation, or to explain that the amount of the last issue was insufficient, owing to defects in the estimates. He thought, however, that the difficulty might be overcome if Mr. Bland would write again, simply requesting that the Corporation be authorized to issue special 6 per cent. land bonds, as provided for in clause 7 of the Agreement, the amount of such issue being limited to the actual deficit in construction account, and being regarded as repayment of sums advanced for land purchases.
Mr. Bland observed that the expenditure on land had exceeded the maximum allowed by the Loan Agreement by 100,000, and that the Corporation had therefore declined to provide this sum out of loan funds or special bonds. He reminded his Excellency that he had agreed last year to arrange for the provision of this sum from other sources. If this were done, the actual deficit would probably not exceed 100,000%, for which land bonds might be issued.
His Excellency T'ang explained that, as Director-General of the Railway, he could have arranged the matter by providing the funds from other sources at his disposal. Under the present circumstances, however, he thought there might be difficulty, and it would therefore be well if the Corporation could advance the whole sum against
bonds.
Mr. Bland explained that there exist legal objections to increasing the capital expenditure of the railway by appropriating for land purposes any sum in excess of the amount stated in the Loan Agreement. He would, however, if desired, telegraph and inquire whether the Corporation could devise a way out of the difficulty.
His Excellency Tang said that, before communicating with the Corporation, it would be best if Mr. Bland would attend a meeting at the Yu-chuan Pu, at which be would also be present, and would explain to the Board the various matters under discussion. He thought it possible that the Board might decide to find the 100,000/. in question.
Turning next to the question of the balance of land required to complete the double track, his Excellency stated that in a recent letter the Chinese members of the Board of Commissioners had informed him that all land required for a double
[2525 r-4]
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