This Document is the Property of His Britannic Majesty's Government.
# CHINA RAILWAYS.
## CONFIDENTIAL.
[2506]
## No. 1.
### Foreign Office to India Office.
[February 5.]
SECTION
C.O.
7780
RECE
Pret 4 MAR 08
Sir,
Foreign Office, February 5, 1908.
I laid before Secretary Sir E. Grey your letter of the 22nd ultimo on the subject of railway communication between Burmah and Yunnan.
I am now directed to request that you will lay the following observations before the Secretary of State for India:
It appears almost impossible at present 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 Burmah 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 Tengyüeh, or of any Company being found to embark on such an enterprise without a guarantee, Sir E. Grey considers that 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 forgo 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.
Sir E. Grey thinks 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 Burmah to Tengyüeh, 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 seems 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.
Sir E. Grey is consulting Sir J. Jordan on the subject, to whose judgment he thinks it would be well to defer as regards the proper time for approaching the Chinese Government and as to the terms to which the Chinese might agree, and on receipt of his report a further communication will be made to you.
In the meantime, it might be well, if Mr. Secretary Morley sees no objection, to ascertain whether the Government of India would be prepared to guarantee a loan for the Burmah-Tengyüeh line, should a Company be found willing to undertake immediate construction.
With regard to the last paragraph of your letter, instructions will be sent to His Majesty's Consul-General at Yunnan-fu to desist from further action with a view to securing a Concession for the construction of a line beyond Tengyüeh.
I am, &c. (Signed) F. A. CAMPBELL.
[2856]
Br omm -1]
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[This Document is the Property of His Britannic Majesty's Government.
CHINA RAILWAYS.
CONFIDENTIAL.
[2506]
No. 1.
Foreign Office to India Office.
[February 5.]
SECTION
C.O.
7780
RECE
Pret 4 MAR 08
Sir,
Foreign Office, February 5, 1908. I LAID before Secretary Sir E. Grey your letter of the 22nd ultimo on the subject of railway communication between Burmah and Yunnan.
I ani now directed to request that you will lay the following observations before the Secretary of State for India :---
It appears almost impossible at present 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 Burmah into Yünnan.
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 Tengyich, or of any Company being found to embark on such an enterprise without a guarantee, Sir E. Grey considers that 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 forgo 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.
Sir E. Grey thinks 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 Burmah to Tengyieh, 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 seems 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.
Sir E. Grey is consulting Sir J. Jordan on the subject, to whose judgment he thinks it would be well to defer as regards the proper time for approaching the Chinese Government and as to the terms to which the Chinese might agree, and on receipt of his report a further communication will be made to you.
In the meantime, it might be well, if Mr. Secretary Morley sees no objectiou, to ascertain whether the Government of India would be prepared to guarantee a loan for the Burmah-Tengyüch line, should a Company be found willing to undertake immediate construction.
With regard to the last paragraph of your letter, instructions will be sent to His Majesty's Consul-General at Yunnan-fu to desist from further action with a view to securing a Concession for the construction of a line beyond Tengyüel.
I am, &c. (Signed) F. A. CAMPBELL.
[2856
Bromm
-1]
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