[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[10451]
No. 1.
16992
[March 27.
SECTION 1.
13 MAY 08
Sir J. Jordan to Sir Edward Grey.--(Received March 27.)
(No. 115.) Sir,
Peking, March 5, 1908. WITH reference to my despatch No. 24 of the 9th January regarding the understanding between the Chinese Government and the German Minister on the question of future railway construction in Shantung, I have the honour to inclose a translation of the Memorial presented by Chang Chih Tung, Yuan Shih K'ai, and Liang Tun Yen prior to the signature of the Tien-tsin-P'u-k'ou Railway Agreement.
The memorialists state in this document that an understanding exists with the German Minister, whereby the line from Kiaochow to Yen Chou-fu shall be constructed as a branch of the Tientsin-P'u-k'ou line, which implies that it will be under Chinese control, and not on the same footing as the Kiaochow-Chinan Railway.
On her part China has agreed with the German Minister that the Tientsin-P'u-k'ou line will be connected with the Peking-Hankow system by two connecting lines, north and south, and that Germany shall have the first option if a foreign loan is required for these railways. I have been unable to ascertain why the long period of fifteen years was determined on in respect to this obligation.
I have, &c. (Signed) J. N. JORDAN,
Inclosure in No. 1.
Memorial presented by Chang Chih Tung and Yuan Shih K‘ai with reference to the Amended Loan Agreement for the Construction of the Tien-tsin-P'u-k'ou Railway.
(Translation.)
IN response to a Petition presented by natives of Chibli, Kiangsu, and Shantung on the 29th March of last year praying that these provinces might be permitted to carry out for themselves the construction of the Tien-tsin Chinkiang Railway, an Imperial Rescript was issued directing Chang Chih Tung and Yuan Shih K'ai to settle the question. Liang Tun Yen was afterwards instructed to co-operate with the above two Ministers in negotiating the matter with the British and German Ministers.
The memorialists then give the following résumé of previous negotiations in regard to this railway:
In June 1899 a draft loan Agreement for the construction of a railway from Tien-tsin to Chinkiang was concluded between the Director-General of Railways and the Hong Kong and Shanghae and German Banks, and received the Imperial sanction. The following were the main provisions of this draft Agreement:
The line was to be divided into two sections, one from Tien-tsin to Yi Hsien and the other from Yi Hsien to Chinkiang, the total length being estimated at 1,800 li. The amount of the loan was 7,400,000l. at 5 per cent, to be repaid in fifty years. Until the repayment of the loan all matters with regard to the construction and working of the line were to be under the direction of the banks. For the administration of the railway two offices should be established, one for each of the two sections of the line. Each of these general offices would be administered by a Board of five Directors, Chinese and foreign, as well as a foreign General Manager and foreign Chief Engineer, and would have full control of all income and expenditure. Out of the annual profits of the railway 20 per cent. should be paid to the banks for their services and 10 per cent. should be deposited with the banks to form a sinking fund.
In August 1902 Yuan Shih K'ai was directed to negotiate the final Agreement, and he deputed T'ong Shao Yi and Liang Ju Hao to arrange the matter with the banks. It was found impossible to come to an agreement over the question, for the German Representative wished to introduce various alterations into the Agreement,
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*This Document is the Property of His Britannic Majesty's Government.] .
CHINA RAILWAYS.
CONFIDENTIAL.
[10451]
No. 1.
16992
[March 27.
དེ་ནས་ ག
SECTION 1.
13 MAY 08
C
Sir J. Jordan to Sir Edward Grey.--(Received March 27.)
(No. 115.) Sir,
Peking, March 5, 1908. WITH reference to my despatch No. 24 of the 9th January regarding the under- standing between the Chinese Government and the German Minister on the question of future railway construction in Shantung, I have the honour to inclose a translation of the Memorial presented by Chang Chih Tung, Yuan Shih K'ai, and Liang Tun Yen prior to the signature of the Tien-tsin-P'u-k'ou Railway Agreement.
The memorialists state in this document that an understanding exists with the German Minister, whereby the line from Kiaochow to Yen Chou-fu shall be constructed as a branch of the Tientsin-P'u-k'ou line, which implies that it will be under Chinese control, and not on the same footing as the Kiaochow-Chinan Railway.
On her part China has agreed with the German Minister that the Tientsin- P'u-k'ou line will be connected with the Peking-Hankow system by two connecting lines, north and south, and that Germany shall have the first option if a foreign loan is required for these railways. I have been unable to ascertain why the long period of fifteen years was determined on in respect to this obligation.
I have, &c. (Signed)
Inclosure in No. 1.
J. N. JORDAN,
Memorial presented by Chang Chih Tung and Yuan Shih K‘ai with reference to the Amended Loan Agreement for the Construction of the Tien-tsin-P'u-k'ou Railway.
(Translation.)
IN response to a Petition presented by natives of Chibli, Kiangsu, and Shantung on the 29th March of last year praying that these provinces might be permitted to carry out for themselves the construction of the Tien-tsin Chinkiang Railway, an Imperial Rescript was issued directing Chang Chih Tung and Yuan Shih K'ai to settle the question. Liang Tun Yen was afterwards instructed to co-operate with the above two Ministers in negotiating the matter with the British and German Ministers.
The memorialists then give the following résumé of previous negotiations in regard to this railway:
In June 1899 a draft loan Agreement for the construction of a railway from Tien-tsin to Chinkiang was concluded between the Director-General of Railways and the Hong Kong and Shanghae and German Banks, and received the Imperial sanction. The following were the main provisions of this draft Agreement:----
The line was to be divided into two sections, one from Tien-tsin to Yi Hsien and the other from Yi Hsien to Chinkiang, the total length being estimated at 1,800 h. The amount of the loan was 7,400,000% at 5 per cent, to be repaid in fifty years. Until the repayment of the loan all matters with regard to the construction and working of the line were to be under the direction of the banks. For the administration of the railway two offices should be established, one for each of the two sections of the line. Each of these general offices would be administered by a Board of five Directors, Chinese and foreign, as well as a foreign General Manager and foreign Chief Engineer, and would have full control of all income and expenditure. Out of the annual profits of the railway 20 per cent. should be paid to the banks for their services and 10 per cent. should be deposited with the banks to form a sinking fund.
In August 1902 Yuan Shih K'ai was directed to negotiate the final Agreement, and he deputed T'ong Shao Yi and Liang Ju Hao to arrange the matter with the banks. It was found impossible to come to an agreement over the question, for the German Representative wished to introduce various alterations into the Agreement,
[2880 dd-1]
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