This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[2713]
No. 1.
[January 25.]
SECTION 2.
Sir J. Jordan to Sir Edward Grey.-(Received January 25, 1908.)
(No. 579. Confidential.)
Sir,
Peking, December 11, 1907.
NO progress has yet been made since my despatch No. 553 of the 26th November towards a solution of the Chekiang Railway question, but it may be useful for purposes of record to set down the facts of the case during the past fortnight.
On the 29th November you informed me by telegraph that you had furnished the Chinese Minister in London with a Memorandum on this and other subjects, and that he had been directed by his Government to telegraph to them the portion dealing with the Chekiang Railway in extenso. The new Governor of Chekiang had, he stated, strong instructions to overcome local opposition. In acknowledging this telegram on the 2nd December, I had the honour to report that Mr. Liang, of the Wai-wu Pu, had come to see me, with a message from Yuan Shih-k'ai, to the effect that private negotiations were reported to be in progress at Shanghae, on the subject of this railway loan, and that in their opinion any compromise which might be made independently of the Board would have a serious effect in weakening Yuan's position. It was feared that if the Central Government gave way before local opposition a serious situation might arise in the south-eastern provinces, and Yuan begged me to address a private letter to him which he could show to his colleagues in the Grand Council, pointing out the danger towards which they were drifting.
My inquiries at Shanghae, through His Majesty's Consul-General, satisfied me that the report of private negotiations being conducted there had no justification, and the perusal of a letter received by Mr. E. G. Hillier from the Manager of the Hong Kong and Shanghae Bank at Shanghae, clearly showed that a correct attitude had been preserved by the bank and Messrs. Jardine, Matheson, and Co. in the interviews which they had accorded to the representatives of the Chekiang gentry. This was also borne out by your telegram No. 130 of the 4th December, informing me that the British and Chinese Corporation in London had no knowledge of any private negotiations at Shanghae.
In pursuance of Yuan Shih-k'ai's request I proceeded on the 3rd December to address a letter to him, copy of which I have the honour to inclose. It was with some reluctance that I did so, as I could not feel sanguine of its utility, but I am glad to say that while lunching with his Excellency to-day he thanked me warmly for it, and said that it had been of considerable service to him.
On the 8th December I received your telegram No. 133 informing me of the appeal made by the Chinese Minister in London to Mr. Keswick of the British and Chinese Corporation to withdraw from this enterprise. In my telegram of the 9th December I expressed the view that the intervention of the Chinese Minister should be treated with great caution, and that we should maintain our position. I suggested, however, that the time had now come when we might proceed with the signature of the Tien-tsin-Yang-tsze Railway Agreement, provided that our interests in regard to the signature of the Chekiang Agreement were safeguarded.
This suggestion had been made to me unofficially by Mr. Liang a few days previously, and your telegram No. 134 of the 9th December authorized its adoption.
I accordingly sent a message to-day to Mr. Liang to the effect that I had been considering his proposal, and signifying that I would be prepared to entertain it if I had an assurance from the Wai-wu Pu in some satisfactory form that the signature of the Chekiang Agreement would follow within a reasonable time, say one month, and that its terms would not be less favourable.
Mr. Liang promised to let me have a definite proposal in a few days.
I caused his attention to be drawn at the same time to a report in the Tien-tsin papers of the 10th December, a cutting of which is inclosed, to the effect that the
[2815 bb-2]
60
This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[2713]
No. 1.
[January 25.]
SECTION 2.
Sir J. Jordan to Sir Edward Grey.-(Received January 25, 1908.)
(No. 579. Confidential.)
Sir,
Peking, December 11, 1907.
NO progress has yet been made since my despatch No. 553 of the 26th November towards a solution of the Chekiang Railway question, but it may be useful for purposes of record to set down the facts of the case during the past fortnight.
On the 29th November you informed me by telegraph that you had furnished the Chinese Minister in London with a Memorandum on this and other subjects, and that he had been directed by his Government to telegraph to them the portion dealing with the Chekiang Railway in extenso. The new Governor of Chekiang had, he stated, strong instructions to overcome local opposition. In acknowledging this telegram on the 2nd December, I had the honour to report that Mr. Liang, of the Wai-wu Pu, had come to see me, with a message from Yuan Shih-k'ai, to the effect that private negotiations were reported to be in progress at Shanghae, on the subject of this railway loan, and that in their opinion any compromise which might be made independently of the Board would have a serious effect in weakening Yuan's position. It was feared that if the Central Government gave way before local opposition a serious situation might arise in the south-eastern provinces, and Yuan begged me to address a private letter to him which he could show to his colleagues in the Grand Council, pointing out the danger towards which they were drifting.
My inquiries at Shanghae, through His Majesty's Consul-General, satisfied me that the report of private negotiations being conducted there had no justification, and the perusal of a letter received by Mr. E. G. Hillier from the Manager of the Hong Kong and Shanghae Bank at Shangbae, clearly showed that a correct attitude had been preserved by the bank and Messrs. Jardine, Matheson, and Co. in the interviews which they had accorded to the representatives of the Chekiang gentry. This was also borne out by your telegram No. 130 of the 4th December, informing me that the British and Chinese Corporation in London had no knowledge of any private negotiations at Shangliae.
In pursuance of Yuan Shih-k'ai's request I proceeded on the 3rd December to address a letter to him, copy of which I have the honour to inclose. It was with some reluctance that I did so, as I could not feel sanguine of its utility, but I am glad to say that while lunching with his Excellency to-day he thanked me warmly for it, and said that it had been of considerable service to him.
On the 8th December I received your telegram No. 133 informing me of the appeal made by the Chinese Minister in London to Mr. Keswick of the British and Chinese Corporation to withdraw from this enterprise. In my telegram of the 9th December I expressed the view that the intervention of the Chinese Minister should be treated with great caution, and that we should maintain our position. I suggested, however, that the time had now come when we might proceed with the signature of the Tien-tsin- Yang-tsze Railway Agreement, provided that our interests in regard to the signature of the Chekiang Agreement were safeguarded.
This suggestion had been made to me unofficially by Mr. Liang a few days previously, and your telegrain No. 134 of the 9th December authorized its adoption.
I accordingly sent a message to-day to Mr. Liang to the effect that I had been considering his proposal, and signifying that I would be prepared to entertain it if I had an assurance from the Wai-wu Pu in some satisfactory form that the signature of the Chekiang Agreement would follow within a reasonable time, say one month, and that its terms would not be less favourable.
Mr. Liang promised to let me have a definite proposal in a few days.
I caused his attention to be drawn at the same time to a report in the Tien-tsin papers of the 10th December, a cutting of which is inclosed, to the effect that the
[2815 bb-2]
60
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