CO129-344 - Public Offices & Foreign Office - 1907 — Page 665

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

CHINA RAILWAYS.

CONFIDENTIAL.

[25165]

662

[July 29.]

SECTION 2. G. 0.

: 29968

No. 1.

RECE

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

REC. 21 AUG 07

(No. 271.) Sir,

Peking, June 10, 1907. I HAVE the honour to transmit to you herewith copy of a despatch from His Majesty's Consul at Tengyueh inclosing translation of a pamphlet calling upon the Yünnanese to subscribe funds for the construction of the Yunnan-Szechuan Railway. In a later despatch, copy of which is likewise inclosed, Mr. Ottewill reports that a similar appeal has been made in the case of the Tengyueh Railway, but has met with little or no response.

It is noteworthy that nowhere in China is there any longer a disposition to question the advantages of railways. This is a lesson which the country at large has learnt during the last ten years, and a dim consciousness of their inability to undertake railway construction on anything like an adequate scale without foreign capital and foreign expert advice is gradually becoming perceptible amongst the more intelligent officials who are seeking ways and means of attaining their object without coming into conflict with public opinion on the subject.

I have, &c.

(Signed)

J. N. JORDAN,

Inclosure 1 in No. 1.

(No. 12.) Sir,

Consul Ottewill to Sir J. Jordan.

Tengyuch, April 25, 1907. WITH reference to my despatch No. 29 of the 21st April, 1906, I have the honour to report that when I was in the Yungchang plain early this month I was shown a pamphlet issued by the Yunnan-Szechuan and Tengyueh Railway Company (or Companies) to village Elders and others calling on them and on all Yünnanese to subscribe funds for the Yunnan-Szechuan Railway. The document was first printed at the offices of the Education Department at Peking and subsequently reprinted at Yünnan-fu. I was unable to obtain a copy, but I made a fairly full translation, copy of which I have the honour to inclose,

It commences by stating that foreign countries are rich and powerful because they have railways, and then makes the frank confession that the Chinese have learnt the necessity for railways. The advantages to be obtained from the building of the line are increase in trade, speedy transit, more movement and safety, especially as compared to pack transport. If built by the Yunnanese they will have the advantages and profits as well, but they must naturally advance the funds which will secure them. The cost is estimated at 3,000,0001. To urge on the cupidity of the prospective contributors it is stated that certain Japanese railway bonds have increased in value 1,200 per cent, in one case and 600 in another. The remarkable assertion is made that railways only show profits and no losses. To meet possible objections it is admitted that the "Chao-hsin " bonds (which formed part of an internal loan) are only worth from 10 to 20 per cent, of their face value, but the railway funds will be safeguarded by some excellent regulations and by being in the hands of merchants as well as officials. The document ends by stating that if foreigners obtain the control of the line they will have all the profits and the Yünnanese all the disadvantages, and by appealing to the Yunnanese to consider the arguments advanced.

The good sense of some parts of the document is balanced by the folly of other parts, and in appealing to the Yünnanese for funds the writers appear to think them more gullible and less astute with regard to their money than foreigners have found them to be. The real object of the Company, which is presumably organized by a specimen, or would-be specimen, of the most corrupt officialdom in the world, and is, therefore, presumably official, is naturally to block any Concession of the line to foreigners. The

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