CO129-350 - Public Offices - 1908 — Page 415

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

412

CHINA RAILWAYS.

CONFIDENTIAL,

C.0. [December 28.1

3394

SECTION 1. Reco REC 29 JAN 08

[42348]

(No. 526.) Sir,

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received December 28.)

Peking, November 12, 1907.

IN continuation of my despatch No. 511 of the 30th October, I have the honour to report that the draft of the Final Agreement for the Tien-tsin-Yang-tsze Railway was initialled at the Wai-wu Pu on the 2nd November by Liang Ta-jên and the Anglo- German negotiators, Messrs. Bland and Cordes. The Chinese text of the Agreement was not ready until the 4th November, when it was handed to Liang Ta-jên for reference to Chang Chih Tung and Yuan Shih Kai, who, it will be remembered, were appointed by Decree on the 4th April as co-negotiators in this question.

In a recent interview with Yuan Shil K'ai bis Excellency informed me that neither he nor Chang Chih Tung had gone through the actual wording of the document, and from remarks of Liang Ta-jên to Mr. Bland there are grounds for believing that altera- tions may still be demanded.

My German colleague is of course anxious to see the Agreement signed as early as possible, but I have informed the Wai-wu Pu, in accordance with the terms of your telegram No. 116 of the 7th November, that I cannot authorize Mr. Bland to sign until the difficulties regarding the Chekiang Railway are overcome, and I have instructed Mr. Bland in the same sense.

I have the honour to inclose a copy of the Agreement as it stood when initialled,

I have, &c. (Signed)

J. N. JORDAN,

Inclosure in No. 1.

Tien-tsin-Yang-tsze Railway Agreement, initialled November 2, 1907.

THIS Agreement is made at Peking on the

year

of Kuang Hsü, corresponding to the

day of the day of

month of the

J

1907, and the

Contracting Parties are:—

Article 1. The Imperial Government of China authorizes the Syndicate Banks to issue a 5 per cent. gold loan for an amount of 5,000,000%.

The loan shall be dated the

and called "The Imperial Chinese Government Five per Cent. Tien-tsin-Yang-tsze Railway Loan."

Art. 2. The loan is designed to provide capital for the construction of a Government railway line from a point connecting with the Imperial Railways of North China at or near Tien-tsin through Techou and Tsinan-fu to Ihsien near the southern frontier of Shantung, hereinafter known as the northern section of the Tien-tsin-Yang-tsze Railway line, and from Ihsien to a point at or near Po-kou (opposite Nanking on the Yang-tszc- kiang), hereinafter known as the southern section of the Tien-tsin-Yang-tsze Railway line. The total length of these two sections being about 1,085 kilom., equal to about 2,170 Chinese li.

The survey line shall be open to revision by the Director-General of the railway.

Art. 3. The capital so provided shall be solely devoted to the construction of the railway line including the purchase of land, rolling-stock, and other equipment, and to the working of the line and to payment of interest on the loan during the period of construction, which is estimated at four years from the actual beginning of the works, the commencement of the works not to be delayed beyond six months after this Agreement has been signed, within which period the Syndicate shall notify the Director- General that the sum of 500,0001. has been placed at his disposal, to be held in Europe or remitted to China as he may direct, as a first instalment on account of the proceeds

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