[This Document is the Property of His Britannic Majesty's Government.]
44
2
estimated to cost 1 crores, is considered promising. The attempts of local Chinese officials to raise voluntary capital for a Chinese line have failed; compulsion is now being tried. Orders have been issued by the Governor-General of Yunnan not to employ British in any capacity in connection with the railway, and to oppose the British Consul in every way. If there is a possibility of raising British capital for the whole line to Yunnan-fu, it would probably be best to adhere to policy of holding China to her pledge given on the 16th March, 1902, while allowing Chinese to subscribe capital and half a share in directorate, at the same time giving some benefits to the Shian States traversed. Line could then be constructed in sections as opportunity offered. If, however, it is considered by His Majesty's Government that the capital could not be raised without a British guarantee, we do not consider Indian interests are sufficiently involved to justify guarantee by Government of India. The compromise suggested by Messrs. Wilkinson and Litton might, in that case, be adopted. China might be asked to give a Concession to Tengyueh only on this basis, coupled with a promise as to the construction of a Chinese line to Yunnan-fu on the basis of the Canton-Kowloon Agreement, a right being reserved to extend the British line if the construction of Chinese line under this arrangement is not carried out by a stipulated date. If China will not agree even to this Concession, but would consent to construction of the whole line from the British frontier on the basis of the Kowloon-Canton Agreement, we are willing to accept this settlement, as the proposed railway is of great importance to Burma.
It appears, however, that China objects to any new arrangement. In this case it remains with His Majesty's Government to decide on the steps to be taken to enforce her pledge of March 1902, and to obtain adequate compensation for her refusal to fulfil her pledge.
CHINA RAILWAYS.
CONFIDENTIAL.
[2105]
[January 24.]
SECTION 1.
C.O.
No. 1.
7780
Sir Edward Grey to Sir J. Jordan.
RECP
Foreign Office, January 24, 1908.
A MAC
MAR 08
(No. 19.) (Telegraphic.) P.
NORTHERN Railway extension to Fakumen. Your telegram No. 17 of the 23rd instant.
I am informed by Count Komura that, if the proposed line were constructed, Chinese promise not to compete with South Manchurian line would be infringed. For this reason, a protest was made to the Chinese Government by the Japanese Government some time ago, and two or three days before the signature of the contract with Paulings this protest was again entered.
The only paying concern obtained by Japan from the recent war is the South Manchurian Railway, and the construction of a competing line is impossible, and the Japanese would have to take steps to prevent such action.
His Majesty's Government cannot press the matter in these circumstances. His Majesty's Ambassador at Tôkiô should be informed of this telegram.
[2813]
[This Document is the Property of His Britannic Majesty's Government.j
44
2
estimated to cost 1 crores, is considered promising. The attempts of local Chinese officials to raise voluntary capital for a Chinese line have failed; compulsion is now being tried. Orders have been issued by the Governor-General of Yinnan not to
> employ British in any capacity in connection with the railway, and to oppose the British Consul in every way. If there is a possibility of raising British capital for the whole line to Yunnan-fu, it would probably be best to adhere to policy of holding China to her pledge given on the 16th March, 1902, while allowing Chinese to subscribe capital and half a share in directorate, at the same time giving some benefits to the Shian States traversed. Line could then be constructed in sections as opportunity offered. If, however, it is considered by His Majesty's Government that the capital could not be raised without a British guarantee, we do not consider Indian interests are sufficiently involved to justify guarantee by Government of India. The compromise suggested by Messrs. Wilkinson and Litton might, in that case, be adopted. China might be asked to give a Concession to Tengyneh only on this basis, coupled with a promise as to the construction of a Chinese line to Yunnan-fu on the basis of the Canton-Kowloon Agreement, a right being reserved to extend the British line if the construction of Chinese line under this arrangement is not carried out by a stipulated date. If China will not agree even to this Concession, but would consent to construc- tion of the whole line from the British frontier on the basis of the Kowloon-Canton Agreement, we are willing to accept this settlement, as the proposed railway is of great. importance to Burmah.
It appears, however, that China objects to any new arrangement. In this case it remains with His Majesty's Government to decide on the steps to be taken to enforce her pledge of March 1902, and to obtain adequate compensation for her refusal to fulfil her pledge.
CHINA RAILWAYS.
CONFIDENTIAL.
[2105]
[January 24.]
SECTION 1.
C.0.
No. 1.
7780
Sir Edward Grey to Sir J. Jordan.
RECP
Foreign Office, January 24, 1908.
A MAC
MAR 08
(No. 19.) (Telegraphic.) P.
NORTHERN Railway extension to Fakumen. Your telegram No. 17 of the 23rd instant.
I am informed by Count Komura that, if the proposed line were constructed, Chinese promise not to compete with South Manchurian line would be infringed. For this reason, a protest was made to the Chinese Government by the Japanese Govern- ment some time ago, and two or three days before the signature of the contract with Paulings this protest was again entered.
The only paying concern obtained by Japan from the recent war is the South Manchurian Railway, and the construction of a competing line is impossible, and the Japanese would have to take steps to prevent such action.
His Majesty's Government cannot press the matter in these circumstances. His Majesty's Ambassador at Tôkiô should be informed of this telegram.
[2813 au-
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