This Document is the Property of His Britannic Majesty's Government.
! JUL 08
[June 10.]
# CHINA RAILWAYS
## CONFIDENTIAL
[20002]
No. 1.
## SECTION 1.
Sir,
India Office to Foreign Office.--(Received June 10.)
India Office, June 9, 1908. WITH reference to your letters of the 5th February and of the 29th May last, I am directed by the Secretary of State for India to forward, for the information of Sir E. Grey, copy of a telegram which has been received from the Government of India relative to the Burmah-Tengyueh Railway project.
It will be seen that the views expressed by the Government of India are in general accord with those contained in Sir J. Jordan's despatch of the 27th April last.
Before arriving at any definite decision on the question, Lord Morley would be obliged if Sir E. Grey could furnish him with a copy of the Tien-tsin-Pukow Agreement, which has not been received at this Office.
I am, &c. (Signed)
COLIN G. CAMPBELL.
## Inclosure in No. 1.
Government of India to Viscount Morley,
(Telegraphic.) P.
May 26, 1908. YOUR railway despatch (Confidential) dated the 6th March, 1908. Report and estimates of the Bhamo-Tengyueh Railway project by Mr. Lilley are incorporated in Railway Board's R. C. Proceedings for July 1907, Nos. 192 to 196A, to which we invite attention.
We are prepared to recommend grant of guarantee on loan on reasonable terms, but recent information before us leads us to doubt whether this would meet the case. Even if a guarantee were given no Company could build the line until it had obtained from Chinese Government a Concession for the portion in Chinese territory,
Sir J. Jordan in his despatch to the Foreign Office, No. 28 of the 22nd January, 1908, suggests that it would be impossible to obtain from China a Concession for the Bhamo-Tengyueh line for a Company guaranteed by the Government of India, and that the only terms on which Concessions for construction of railways in China can now be obtained are terms similar to those contained in the Agreement for the Tien-tsin-Pukow line, under which ownership and complete control by China are insisted upon. Should this view be correct, we think the best course will be to approach the British and Chinese Corporation, who has now successfully negotiated and completed several Agreements for railways in China, with a view to their obtaining from China a Concession to raise a loan on Tien-tsin-Pakow terms for a line from the British frontier to Yunnan-fu. Under this arrangement the only liability imposed on Government of India will be to construct section 40 of the line in British territory, but as negotiations might be expected to be protracted and difficult, we should be prepared to contribute towards the preliminary expenses involved, say, to the amount of £10,000.
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[This Document is the Property of His Britannic Majesty's Government.16
! JUL 08
[June 10.]
CHINA RAILWAYS.
CONFIDENTIAL.
[20002]
No. 1.
SECTION 1.
Sir,
India Office to Foreign Office.--(Received June 10.)
India Office, June 9, 1908. WITH reference to your letters of the 5th February and of the 29th May last, I am directed by the Secretary of State for India to forward, for the information of Sir E. Grey, copy of a telegram which has been received from the Government of India relative to the Burmah-Tengyueh Railway project.
It will be seen that the views expressed by the Government of India are in general accord with those contained in Sir J. Jordan's despatch of the 27th April last.
Before arriving at any definite decision on the question, Lord Morley would be obliged if Sir E. Grey could furnish him with a copy of the Tien-tsin-Pukow Agreement, which has not been received at this Office.
I am, &c. (Signed)
COLIN G. CAMPBELL.
Inclosure in No. 1.
Government of India to Viscount Morley,
(Telegraphic.) P.
May 26, 1908. YOUR railway despatch (Confidential) dated the 6th March, 1908. Report and estimates of the Bhamo-Tengyueh Railway project by Mr. Lilley are incorporated in Railway Board's R. C. Proceedings for July 1907, Nos. 192 to 196A, to which we invite attention.
We are prepared to recommend grant of guarantee on loan on reasonable terms, but recent information before us leads us to doubt whether this would meet the case. Even if a guarantee were given no Company could build the line until it had obtained from Chinese Government a Concession for the portion in Chinese territory,
Sir J. Jordan in his despatch to the Foreign Office, No. 28 of the 22nd January, 1908, suggests that it would be impossible to obtain from China a Concession for the Bhamo-Tengyueh line for a Company guaranteed by the Government of India, and that the only terms on which Concessions for construction of railways in China can now be obtained are terms similar to those contained in the Agreement for the Tien-tsin- Pakow line, under which ownership and complete control by China are insisted upon. Should this view be correct, we think the best course will be to approach the British and Chinese Corporation, who has now successfully negotiated and completed several Agreements for railways in China, with a view to their obtaining from China a Conces- sion to raise a loan on Tien-tsin-Pakow terms for a line from the British frontier to Yunnan-fu. Under this arrangement the only liability imposed on Government of India will be to construct section 40 of the line in British territory, but as negotiations might be expected to be protracted and difficult, we should be prepared to contribute towards the preliminary expenses involved, say, to the amount of 10,0001.
[1814 -1]
806
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