This Document is the Property of His Britannic Majesty's Government
CHINA RAILWAYS.
3303795
[August] 26. 0 SEP 08
CONFIDENTIAL.
[29650]
No. 1.
SECTION 1.
(No. 357.) Sir.
Sir J. Jordan to Sir Edward Grey.-(Received August 26.)
Peking, August 5, 1908.
I HAVE the honour to inclose, for your information, copies of documents relating to the affairs of the Shanghae-Ningpo Railway.
The Memorial of the Board of Communications, with Rescript of the 15th April and attached Regulations, was not made known to me in any way officially. It was brought to my notice by Mr. Bland, who obtained a copy privately some time after the date of the Rescript, and who considered that, the control of the line being apparently handed over by the Board to the Kiang-su and Chêkiang Railway Companies, the Loan Agreement was contravened, and that His Majesty's Government should demand the revocation of the Rescript and the cancellation of the obnoxious features of the transaction.
It is true that the arrangement thus made between the Board and the Companies did not accord with some important provisions of the Loan Agreement, but it seemed to me to be explainable as a Chinese internal method of smoothing over strong local objections, which the Board would find means to vary according as it was found in practice to conflict with external obligations under the Loan Agreement.
In any case I felt that, before embarking upon a serious demand for the revocation of an Imperial Decree in such a case, I must be satisfied that the Chinese Government really meant to set the Loan Agreement directly at naught. A merely departmental scheme, which was probably devised to tide over temporary difficulties created by two influential provinces in a very contentious matter, and which, as far as I could judge, was not intended to come to the knowledge of His Majesty's Government, did not appear to me sufficient to convict the Chinese Government of deliberate bad faith and of an intention to violate the Agreement, formed almost as soon as the latter was signed.
I advised Mr. Bland to ignore these documents for the time being, and on all occasions to press steadily for the proper fulfilment of the loan terms. It appeared to me that, until it was proved in practice that the internal scheme arranged between the Board and the Companies was real, and not, so far as we are concerned, a mere paper concession to popular feeling, and that the carrying out of the Loan Agreement was seriously prejudiced thereby, it was not necessary to take any official steps in regard to it.
In the middle of May a proposal was mooted by the present Managing Director, before his actual appointment, to engage two Belgian Assistant Engineers to serve under the English Engineer-in-chief. I took an early occasion to express verbally to members of the Wai-wu Pu and the Board of Communications my strong objections to such a proposal which, I warned them, I should oppose firmly if it was seriously put forward. It was not reasonable, I said, that such a thing should be done in the case of a railway financed with British capitalists; it would undoubtedly be construed as an unfriendly step, and one which must lead to friction. The proposal was dropped.
The appointments of the Managing Director and Chief Engineer under the Loan Agreement were not made as rapidly as might have been expected, but I was aware that in the case of the first the post was not sought after because of the difficulties anticipated from the provinces, and I knew that at least one competent British Engineer had declined the other partly for similar reasons.
After the receipt of your telegram No. 101 of the 4th July, I requested the Wai-wu Pu by letter to hasten the appointment of the Engineer, and that and the selection of a Managing Director have been repeatedly urged verbally at the Board of Communications and the Wai-wu Pu.
On the 23rd July I learnt that Taotai Shih Chao-tseng, who was educated in America and appears to be qualified, was appointed Managing Director, and soon after Mr. Foord accepted the terms of the Agreement, copy of which is inclosed, and is now the Chief Engineer.
Mr. Foord surveyed the trace of the Pukow-Sinyang Railway for the Chinese Central Railways (Limited), and was at the time of his present appointment employed on the Canton-Kowloon Railway. In considering his Agreement, which does not appear to be a very satisfactory one, it should be borne in mind that, from his previous experience in China, he must be well aware of the meaning of the terms he has accepted.
[1897 cc-1]
B
>
This Document is the Property of His Britannic Majesty's Governmen
CHINA RAILWAYS.
3303795
[Augus) 26.0 SEP 08
CONFIDENTIAL.
[29650]
No. 1.
SECTION 1.
(No. 357.) Sir.
Sir J. Jordan to Sir Edward Grey.-(Received August 26.)
Peking, August 5, 1908. I HAVE the honour to inclose, for your information, copies of documents relating to the affairs of the Shanghae-Ningpo Railway.
The Memorial of the Board of Communications, with Rescript of the 15th April and attached Regulations, was not made known to me in any way officially. It was brought to my notice by Mr. Bland, who obtained a copy privately some time after the date of the Rescript, and who considered that, the control of the line being apparently handed over by the Board to the Kiang-su and Chêkiang Railway Companies, the Loan Agreement was contravened, and that His Majesty's Government should demand the revocation of the Rescript and the cancellation of the obnoxious features of the trans- action. It is true that the arrangement thus made between the Board and the Companies did not accord with some important provisions of the Loan Agreement, but it seemed to me to be explainable as a Chinese internal method of smoothing over strong local objections, which the Board would find means to vary according as it was found in practice to conflict with external obligations under the Loan Agreement. In any case I felt that, before embarking upon a serious demand for the revocation of an Imperial Decree in such a case, I must be satisfied that the Chinese Government really meant to set the Loan Agreement directly at naught. A merely departmental scheme, which was probably devised to tide over temporary difficulties created by two influential provinces in a very contentious matter, and which, as far as I could judge, was not intended to come to the knowledge of His Majesty's Government, did not appear to me sufficient to convict the Chinese Government of deliberate bad faith and of an intention to violate the Agreement, formed almost as soon as the latter was signed. I advised Mr. Bland to ignore these documents for the time being, and on all occasions to press steadily for the proper fulfilment of the loan terms. It appeared to me that, until it was proved in practice that the internal scheme arranged between the Board and the Companies was real, and not, so far as we are concerned, a mere paper concession to popular feeling, and that the carrying out of the Loan Agreement was seriously prejudiced thereby, it was not necessary to take any official steps in regard to it.
In the middle of May à proposal was mooted by the present Managing Director, before his actual appointment, to engage two Belgian Assistant Engineers to serve under the English Engineer-in-chief. I took an early occasion to express verbally to members of the Wai-wu Pu and the Board of Communications my strong objections to such a proposal which, I warned them, I should oppose firmly if it was seriously put forward. It was not reasonable, I said, that such a thing should be done in the case of a railway financed with British capitalists; it would undoubtedly be construed as an unfriendly step, and one which must lead to friction. The proposal was dropped.
The appointments of the Managing Director and Chief Engineer under the Loan Agreement were not made as rapidly as might have been expected, but I was aware that in the case of the first the post was not sought after because of the difficulties anticipated from the provinces, and I knew that at least one competent British Engineer had declined the other partly for similar reasons. After the receipt of your telegram No. 101 of the 4th July, I requested the Wai-wu Pu by letter to hasten the appoint- ment of the Engineer, and that and the selection of a Managing Director have been repeatedly urged verbally at the Board of Communications and the Wai-wu Pu. On the 23rd July I learnt that Taotai Shih Chao-tseng, who was educated in America and appears to be qualified, was appointed Managing Director, and soon after Mr. Foord accepted the terms of the Agreement, copy of which is inclosed, and is now the Chief Engineer. Mr. Foord surveyed the trace of the Pukow-Sinyang Railway for the Chinese Central Railways (Limited), and was at the time of his present appointment employed on the Canton-Kowloon Railway. In considering his Agreement, which does not appear to be a very satisfactory one, it should be borne in mind that, from his previous experience in China, he must be well aware of the meaning of the terms he has accepted.
[1897 cc-1]
B
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