[This Document is the Property of His Britannic Majesty's Government.]
# CHINA RAILWAYS.
**CONFIDENTIAL.**
[2506]
No. 1.
India Office to Foreign Office.~(Received January 23.)
43
[January 23.]
## SECTION 1.
C7780 Rece
Sir,
India Office, January 22, 14 MAR 08, WITH reference to the letter from the Foreign Office of the 24th December, 1907, on the subject of projected railways between Burmah and Yunnan, I am directed by Mr. Secretary Morley to forward, for the information of Sir Edward Grey, a copy of a telegram from the Government of India, dated the 15th idem.
It will be observed that the Government of India consider the construction of a railway from Bhamo to Tongyueh a matter of great importance to Burmah, but that, as regards the extension to Yunnan-fu, they do not consider Indian interests sufficiently involved to justify a guarantee by the Indian Government.
Mr. Morley concurs.
He is not aware that there is any probability of a guarantee being given by His Majesty's Government for railways in Yunnan, and, without a guarantee, he understands that there is no likelihood of a Company being promoted to undertake them, even if a Concession for their construction should be obtained from China.
In these circumstances, while Mr. Morley considers that the claim of equal rights with the French should be maintained, he doubts whether it is at present worth while pressing for a specific Concession for a line to Yunnan-fu, which it would be impossible to take up. But, as regards a line from Bhamo to Tengyueh, the prospects of which are considered promising, if a Concession can be obtained the Government of India will be prepared to carry it out, though probably not in the immediate future (i.e., in the next two or three years), either themselves or with the aid of a Company. If, however, the Chinese authorities wish to participate in the enterprise, the Government of India will also be prepared to accept a scheme involving their participation and co-operation, provided that efficiency in the construction and working of the railway is secured.
In the event of any such Concession being obtained, it is desirable that it should carry with it a promise to permit the gradual extension of the line to Yunnan-fu under British auspices, as prospects of traffic may be held to justify the construction of extensions.
I am to request that Mr. Morley may be informed of the views of Sir E. Grey on the question, and of the instructions which he may think it desirable to issue to the Representatives of His Majesty's Government in China in the matter.
In the meanwhile, Mr. Morley agrees that, as suggested in the letter from the Foreign Office of the 9th instant, Consul-General Wilkinson should be instructed to desist from further action with a view to securing a Concession for the construction of a line beyond Tengyueh.
I am, &c.
(Signed)
COLIN G. CAMPBELL
## Inclosure in No. 1.
Government of India to Mr. Morley.
December 15, 1907. (Telegraphic.) P.
BURMAH-CHINA Railway. See Railway despatch of 5th April last and previous correspondence.
It has been ascertained that as far as Tali-fu, railway can be constructed at cost of 44 crores for fully equipped 2-ft. 6-in. gauge line with ruling gradient of 1 in 20, at cost of 74 crores for metre-gauge line with ruling gradient 1 in 25, and for 74 crores for metre-gauge electrical line with ruling gradient 1 in 15. The net receipts are estimated at 4, 24, and 2 per cent, on capital cost respectively.
Estimates are being examined further; probably in all cases these are sanguine. But, as far as Tengyueh, distance 112 miles, the line, which on the metre gauge is
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[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[2506]
No. 1.
India Office to Foreign Office.~(Received January 23.)
43
[January 23.]
SECTION 1.
C
7780
Rece
Sir,
India Office, January 22, 14 MAR 08, WITH reference to the letter from the Foreign Office of the 24th December, 1907, on the subject of projected railways between Burmah and Yaunan, I am directed by Mr. Secretary Morley to forward, for the information of Sir Edward Grey, a copy of a telegram from the Government of India, dated the 15th idem.
It will be observed that the Government of India consider the construction of a railway from Bhamo to Tongyueh a matter of great importance to Burniah, but that, as regards the extension to Yiinnan-fn, they do not consider Indian interests sufficiently In these observations. involved to justify a guarantee by the Indian Government.
Mr. Morley concurs.
He is not aware that there is any probability of a guarantee being given by His Majesty's Government for railways in Yüunan, and, without a guarantee, he under- stands that there is no likelihood of a Company being promoted to undertake them, even if a Concession for their construction should be obtained from China.
to
In these circumstances, while Mr. Morley considers that the claim of equal rights with the French should be maintained, he doubts whether it is at present worth while
press
for a specific Concession for a line to Yünnan-fu, which it would be impossible to take up. But, as regards a line from Bhamo to Tengyueh, the prospects of which are considered promising, if a Concession can be obtained the Government of India will be prepared to carry it out, though probably not in the immediate future (ie., in the next two or three years), either themselves or with the aid of a Company. If, however, the Chinese anthorities wish to participate in the enterprise, the Government of India will also be prepared to accept scheme involving their participation and co-operation, provided that efficiency in the construction and working of the railway is secured.
In the event of any such Concession being obtained, it is desirable that it should carry with it a promise to permit the gradual extension of the line to Yünnan-fu under British auspices, as prospects of traffic may be held to justify the coustruction of
extensions.
I am to request that Mr. Morley may be informed of the views of Sir E. Grey on the question, and of the instructions which he may think it desirable to issue to the Representatives of His Majesty's Government in China in the matter.
In the meanwhile, Mr. Morley agrees that, as suggested in the letter front the Foreign Office of the 9th instant, Consul-General Wilkinson should be instructed to desist from further action with a view to securing a Concession for the construction of a line beyond Tengyueh.
}
I am, &e.
(Signed)
COLIN G, CAMPBELL
Inclosure in No. 1.
Government of India to Mr. Morley.
December 15, 1907. (Telegraphic.) P.
BURMAH-CHINA Railway. See Railway despatch of 5th April last and previous
correspondence.
It has been ascertained that as far as Tali-fu, railway can be constructed at cost of 44 crores for fully equipped 2-ft. 6-in. gauge line with ruling gradient of 1 in 20, at cost of 74 crores for metre-gauge line with ruling gradient 1 in 25, and for 74 crores for metre-gauge electrical line with ruling gradient 1 in 15. The net receipts are estimated at 4, 24, and 2 per cent, ou capital cost respectively.
Estimates are being examined further; probably in all cases these are sanguine. But, as far as Tengyueh, distance 112 miles, the line, which on the metre gauge is
[2815 -1]
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