!
[This Document is the Property of His Britannic Majesty's Government.]
2
These subsidies were intended to be sufficient to enable the Company to procure the necessary funds for the construction of the line, the cost of which was estimated 96,000,000 fr. (3,440,000.). It is now certain that this sum will be very largely exceeded, but the amount of the new obligations to be undertaken cannot be arrived at until the result of the Commission which has been examining the work is known. It can only be stated that the Company, in an estimate which M. Beau says appears to be sensibly exaggerated, now calculate the total cost of the work as "being 156,000,000 fr. (6,240,0007.).
This increased expenditure must be met, firstly, by an increase of the shares issued by the Company, and, secondly, by an issue of bonds, the interest on which will be paid either by the Company or by the Colony in accordance with the decision of the arbitrators. These arbitrators have been appointed to decide how much of this increased expenditure on the railway should be paid by the Company, and how much the Colony ought to pay for. In order to meet possible charges under this head, a sum of 350,000 dollars has been entered in the Budget.
I have, &e.
(Signed) T. Ff. CARLISLE.
SOUTH-WEST CHINA.
CONFIDENTIAL.
[14251]
No. 1.
India Office to Foreign Office.-(Received May 2.)
93
[May 2.]
SLOTION 1.
Sir,
India Office, May 1, 1907. WITH reference to your letter of the 14th February last, forwarding copy of a despatch from His Majesty's Minister at Peking regarding the Namting-Nalawt section of the Burmah-China frontier, I am directed by Mr. Secretary Morley to transmit, to be laid before the Secretary of State for Foreign Affairs, copy of a telegram from the Government of India on the subject. A copy of the Burmah Government's letter of the 19th October, 1906, to which reference is made in the Viceroy's telegram, was communicated to the Foreign Office on the 19th December, 1906, and the maps forming an inclosure to that letter on the 2nd March last.
The situation is governed by Mr. Morley's telegram of the 1st August, 1906, in the terms of which Sir E. Grey concurred, conveying the approval of His Majesty's Government to the Government of India's proposal that concessions should be offered to the Chinese Government in respect of the Namting-Nalawt section in return for a satisfactory settlement of the undemarcated portion of the frontier to the north of Manung Pum.
The present proposals specify the concessions which, in the opinion of the Government of India, might suitably he offered to China in return for her formal recognition of the settlement of the frontier north of Manung Pum on the lines indicated in the draft Article presented to the Chinese Government on the 9th April, 1906. I am to suggest that, if Sir E. Grey sees no objection, His Majesty's Minister at Peking should be consulted as to whether the Chinese Government are likely to entertain favourably a proposal for the settlement of the whole frontier question on the terms suggested.
Mr. Morley observes, and this might be pointed out to His Majesty's Minister, that from the terms of Article 3 of the Agreement of the 4th February, 1897, and from the map which accompanies it, there can be no doubt of the justice of the British claim on this part of the boundary. Both the Article and the map specify points of latitude and longitude through which the boundary should pass, and the map shows that both banks of the Nam Kha River are within the territory assigned to us. To abate, therefore, anything from the claim which we have hitherto made is a very distinct concession, which should not be granted unless the northern boundary is also settled to our complete satisfaction.
Of the alternative lines proposed in the Viceroy's telegram, the third has the obvious advantage of involving least demarcation, but, subject to the reservation that no more should be conceded than is necessary to obtain the object in view, Mr. Morley would be prepared to accept Shih Taotai's line or that suggested by the Burmah Government, should either of these appear to Sir J. Jordan to afford a better prospect of a settlement. It will be seen from the maps communicated to the Foreign Office on the 2nd March last that the line suggested by the Government of Burmah entails the greatest concession to China.
Ι am, &c.
(Signed)
A. GODLEY.
Inclosure in No. 1.
Government of India to Mr. Morley.
(Telegraphic.) P.
March 22, 1907. PLEASE refer to correspondence ending with your telegram of the 16th October, 1906, respecting Burmah-China frontier. There is no doubt great weight in arguments contained in Burmah Government's letter of the 19th October, 1906;* we should,
* See Paper 42601.
[2506 b -1]
No comments yet.
Private notes are available after approval.