CO129-344 - Public Offices & Foreign Office - 1907 — Page 664

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

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CHINA RAILWAYS.

CONFIDENTIAL.

661

[July 29.]

SECTION 1

0.

[25182]

No. 1.

Sir J. Jordan to Sir Edward Grey.—(Received July 29.)

29963

RECT

REG. 21 AUG 07,

(No. 288.) Sir,

Peking, June 13, 1907. WHILE Ts'ên Hsuan (the Canton Viceroy) was enjoying his brief occupancy of the post of President of the Board of Communications, he boasted on several occasions that he had convinced the Empress Dowager of the necessity of borrowing money from abroad for railway development.

Shortly after his reappointment to Canton, he sent for M. Casenave, the repre- sentative of the Banque de l'Indo-Chine and of the French group in the Chinese Central Railways," and made overtures for a loan of about 10,000,000 taels (say, 1,500,0001) No details were discussed, but it was understood that the general lines would be similar to the proposals of the Viceroy at Wuchang-that is to say, that the real object of the loan would be railway construction, though it would nominally be for general purposes of provincial development.

Mr. Hillier, of the Hong Kong and Shanghae Bank, communicated this intelligence to his principals on the 7th instant, and received authority to act with M. Casenave at his discretion.

The Viceroy Ts'ên was, however, unsuccessful in getting sanction for all his requirements. In his Memorial, as far as can be ascertained at present, he repre- sented the impossibility of carrying out measures of reform in his Viceroyalty owing to the emptiness of the provincial treasury. During his previous tenure of office he had been refused permission by the Board to raise a foreign loan, but after mature consideration he was convinced that, without the assistance of a foreign loan of 10,000,000 taels, he could not carry on the provincial Government. If this was not allowed, he would have to ask that all the contributions of the province to the metropolitan exchequer should be diminished by one-half.

The Memorial was, as usual, handed to the Board of Finance for consideration, and, as far as present information goes, that Department is only willing to sanction a foreign loan of 5,000,000 taels. This does not satisfy the Viceroy, who has left Peking to-day for the south.

Whether at the last moment he obtained sanction for the full amount I have not

yet heard.

In the meantime, Mr. Hillier has left for Hankow to pursue negotiations with the Viceroy at Wuchang.

I have, &c. (Signed) J. N. JORDAN.

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