This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[26001]
No. 1.
[July 27.]
SECTION 1.
Sir J. Jordan to Sir Edward Grey.-(Received July 27.)
(No. 270.) Sir,
Peking, June 11, 1908. WITH reference to my despatch No. 224 of the 25th May, I have the honour to state that, in a private letter dated the 24th May, Mr. Fraser mentioned that his Belgian colleague had inquired whether Mr. Moore's employment meant a foreign loan, alleging as his reason for the inquiry that the Chinese Government had some years ago given Belgium the first right to finance the Hankow-Canton Railway if foreign money was required.
I instructed Mr. Fraser by telegraph on the 26th May to tell the Belgian Consul, if he should return to the question, that we recognize no right on the part of Belgium to finance the Hankow Canton line, and in a despatch of the 28th May I sent Mr. Fraser a copy of my despatch No. 224 to you, requesting him to take an early opportunity of bringing to the notice of the new Viceroy the engagements entered into by his predecessor, Chang Chih-tung, in September 1905.
In a telegram of the 6th June Mr. Fraser informed me that he had done so, and that the Viceroy had replied acknowledging that he possessed copies of the special documents regarding both the Hankow-Canton and the Szechuan-Hankow Railways. The Viceroy also stated that the half-yearly interest on the unredeemed bonds, amounting to 55,550 dollars gold, has been regularly paid through the Chinese Minister at Washington into the bank at New York up to the 1st May, 1908; that at each payment Hupei Province receives for cancellation 4,444 coupons; and that in any case the purchase of the American Concession in 1905 annulled any validity which Sheng's letter might have possessed. It is evident from this that M. Bapst was misinformed when he told me that no interest has been paid on the outstanding bonds for the past three years.
In the meantime I have been pressing the matter at the Wai-wu Pu, and on the 2nd June his Excellency Liang Tun-yen told me that he had spoken to Chang Chih-tung on the subject at the Summer Palace. The Grand Secretary, who continues to exercise a general supervision over Hupei concerns in the Grand Council, did not think the time had come to consider the question of a foreign loan for the Hankow-Canton line, but suggested that Mr. Bland might go to Hankow and open negotiations for a Hankow-Szechuan Railway loan, which he promised to support by a telegram to the Viceroy.
Mr. Bland sees little advantage in a visit to Hankow unless he is assured of the readiness of the Viceroy to consider the question seriously, and by this mail I am requesting Mr. Fraser to endeavour to ascertain his Excellency's views on Chang's suggestion.
As regards the Hankow-Canton line, Mr. Fraser inclines to the belief that the Hupei authorities, who say that they have at least 5,000,000 dollars to spend on the Hupei section, and that Hunan has quite enough to begin with, will not entertain a foreign loan until it is seen whether the actual commencement of work will or will not rouse the Chinese to provide the capital themselves.
I have, &c. (Signed) J. N. JORDAN.
[1841 dd-1]
317
This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[26001]
No. 1.
[July 27.]
SECTION 1.
Sir J. Jordan to Sir Edward Grey.-(Received July 27.)
(No. 270.) Sir,
Peking, June 11, 1908. WITH reference to my despatch No. 224 of the 25th May, I have the honour to state that, in a private letter dated the 24th May, Mr. Fraser mentioned that his Belgian colleague had inquired whether Mr. Moore's employment meant a foreign loan, alleging as his reason for the inquiry that the Chinese Government had some years ago given Belgium the first right to finance the Hankow-Canton Railway if foreign money was required.
instructed Mr. Fraser by telegraph on the 26th May to tell the Belgian Consul, if he should return to the question, that we recognize no right on the part of Belgium to finance the Hankow Canton line, and in a despatch of the 28th May I sent Mr. Fraser a copy of my despatch No. 224 to you, requesting him to take an early opportunity of bringing to the notice of the new Viceroy the engage- ments entered into by his predecessor, Chang Chih-tung, in September 1905.
In a telegram of the 6th June Mr. Fraser informed me that he had done so, and that the Viceroy had replied acknowledging that he possessed copies of the special documents regarding both the Hankow-Canton and the Szechuan-Hankow Railways. The Viceroy also stated that the half-yearly interest on the unredeemed bonds, amounting to 55,550 dollars gold, has been regularly paid through the Chinese Minister at Washington into the bank at New York up to the 1st May, 1908; that at each payment Hupei Province receives for cancellation 4,444 coupons; and that in any case the purchase of the American Concession in 1905 annulled any validity which Sheng's letter might have possessed. It is evident from this that M. Bapst was misinformed when he told me that no interest has been paid on the outstanding bonds for the past three years.
In the meantime I have been pressing the matter at the Wai-wu Pu, and on the 2nd June his Excellency Liang Tun-yen told me that he had spoken to Chang Chih- tung on the subject at the Summer Palace. The Grand Secretary, who continues to exercise a general supervision over Hupei concerns in the Grand Council, did not think the time had come to consider the question of a foreign loan for the Hankow- Canton line, but suggested that Mr. Bland might go to Hankow and open negotiations for a Hankow-Szechuan Railway loan, which he promised to support by a telegram to the Viceroy.
Mr. Bland sees little advantage in a visit to Hankow unless he is assured of the readiness of the Viceroy to consider the question seriously, and by this mail I am requesting Mr. Fraser to endeavour to ascertain his Excellency's views on Chang's suggestion.
As regards the Hankow-Canton line, Mr. Fraser inclines to the belief that the Hupei authorities, who say that they have at least 5,000,000 dollars to spend on the Hupei section, and that Hunan has quite enough to begin with, will not entertain a foreign loan until it is seen whether the actual commencement of work will or will not rouse the Chinese to provide the capital themselves.
I have, &c. (Signed) J. N. JORDAN.
[1841 dd-1]
317
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