This Document is the Property of His Britannic Majesty's Government.]
# CHINA RAILWAYS.
## CONFIDENTIAL.
(2506)
No. 1.
Sir Edward Grey to Sir J. Jordan.
45
[February 3.]
## SECTION 1.
7780
RECE RE 4 MAR 08
(No. 55.) Sir,
Foreign Office, February 3, 1908: WITH reference to previous correspondence I transmit to you a copy of a letter from the India Office,* on the subject of projected railway communication between Burma and Yunnan.
I have stated in reply that it appears now almost impossible to obtain a railway concession in China, owing to the organized hostility of the local authorities and gentry, and the weakness of the Central Government, this being the case even where a preliminary Agreement has been sanctioned at Peking and an Imperial Edict obtained; and it is necessary to bear this in mind in considering the question of the extension of lines from Burma into Yünnan.
As there is no prospect of obtaining a guarantee either by His Majesty's Government or the Government of India for a line beyond Tengyueh, or of any Company being found to embark on such an enterprise without a guarantee, all idea of seeing such an extension constructed must be abandoned, at least for some years to come, though nothing should, of course, be said to induce the belief that His Majesty's Government are willing to forego the claim which was placed on record in the notes exchanged in March 1902 by Prince Ch'ing and His Majesty's Minister at Peking, when the former stated that instructions had been sent to the Yunkwei Viceroy that similar privileges should be accorded to British as to French railway and trade enterprise.
I further stated that to approach the Chinese Government on the subject at present would probably be fatal to the chances of obtaining a concession for the line from Burma to Tengyueh, to which the Government of India attach much importance. If, however, the Government of India are not prepared to undertake the construction of that line for the next two or three years, it is doubtful whether any advantage would be gained by making an application to the Chinese Government at present; and in any case it would be necessary to inform them that immediate construction was not contemplated, as it has been found that much prejudice has been caused to British enterprise in China, owing to the long delay which has occurred in some cases in taking up concessions which have been granted.
The foregoing observations indicate the manner in which the case presents itself to me on the information at present at my disposal, but I shall be glad to be furnished with an expression of your opinion on the subject, and also as regards the proper time for approaching the Chinese Government, and as to the terms to which the Chinese might agree.
In the meantime I have suggested that the Government of India should be asked if they would be prepared to guarantee a loan for the Burma-Tengyueh line, should a Company be found willing to undertake immediate construction.
With reference to the last paragraph of the letter from the India Office, I shall be glad if you will instruct His Majesty's Consul-General at Yünnan-fu to desist from further action, with a view to securing a concession for the construction of a line beyond Tengyueh.
I am, &c.
E. GREY.
(Signed)
* India Office, January 22, 1908.
[2856 -
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This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
(2506)
No. 1.
Sir Edward Grey to Sir J. Jordan.
45
[February 3.]
SECTION 1.
7780
RECE RE 4 MAR 08
(No. 55.) Sir,
Foreign Office, February 3, 1908: WITH reference to previous correspondence I transmit to you a copy of a letter from the India Office,* on the subject of projected railway communication between Burma and Yunnan.
I have stated in reply that it appears now almost impossible to obtain a railway concession in China, owing to the organized hostility of the local authorities and gentry, and the weakness of the Central Government, this being the case even where a preliminary Agreement has been sanctioned at l'eking and an Imperial Edict obtained; and it is necessary to bear this in mind in considering the question of the extension of lines from Burma into Yünuau.
As there is no prospect of obtaining a guarantee either by His Majesty's Govern- ment or the Government of India for a line beyond Tengyueb, or of any Company being found to embark on such an enterprise without a guarantee, all idea of seeing such an extension constructed must be abandoned, at least for some years to come, though nothing should, of course, be said to induce the belief that His Majesty's Government are willing to forego the claim which was placed on record in the notes exchanged in March 1902 by Prince Ch'ing and His Majesty's Minister at Peking, when the former stated that instructions had been sent to the Yunkwei Viceroy that similar privileges should be accorded to British as to French railway and trade enterprise.
I further stated that to approach the Chinese Government on the subject at present would probably be fatal to the chances of obtaining a concession for the line from Burma to Tengyueh, to which the Government of India attach much importance. If, however, the Government of India are not prepared to undertake the construction of that line for the next two or three years, it is doubtful whether any advantage would be gained by making an application to the Chinese Government at present; and in any case it would be necessary to inform them that immediate construction was not contemplated, as it has been found that much prejudice has been caused to British enterprise in China, owing to the long delay which has occurred in some cases in taking up concessions which have been granted.
The foregoing observations indicate the manner in which the case presents itself to me on the information at present at my disposal, but I shall be glad to be furnished with an expression of your opinion on the subject, and also as regards the
proper
time
for approaching the Chinese Government, and as to the terms to which the Chinese might agree.
In the meantime I have suggested that the Government of India should be asked if they would be prepared to guarantee a loan for the Burma--Tengyueh line, should a Company be found willing to undertake immediate construction.
With reference to the last paragraph of the letter from the India Office, I shall be glad if you will instruct His Majesty's Consul-General at Yüunan-fu to desist from further action, with a view to securing a concession for the construction of a line beyond Tengyuch.
I am, &c.
E. GREY.
(Signed)
* India Office, January 22 1908.
[2856 -
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