C.0.
This Document is the Property of His Britannic Majesty's Government.
CHINA RAILWAYS.
CONFIDENTIAL.
[September 14. OCT 08]
SECTION 1.
[31932]
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received September 14.)
(No. 365.) Sir,
Peking, August 17, 1908.
WITH reference to my despatch No. 357 of the 5th instant respecting the affairs of the Shanghae-Ningpo Railway, I have the honour to inclose a copy of a letter from the representative ad interim of the British and Chinese Corporation, informing me that the Board of Communications had replied in a satisfactory sense to the points raised by Mr. Bland in connection with the fulfilment of the Loan Agreement.
I also have the honour to report that in the course of an interview with Mr. Liang Shih Yi at the Board of Communications on the 14th instant I informed his Excellency that I was aware of the Agreement made between the Board and the Provincial Railway Companies concerning this line, and of the Agreement under which Mr. Foord was engaged as Engineer-in-chief. I observed that the Board's agreement with the Railway Companies, which had not been communicated to me officially, but had been brought to my notice by Mr. Bland, had been made shortly after the Loan Agreement was signed, and that it conflicted with the provisions of that contract. Mr. Bland had desired me to demand its revocation, but I had determined to ignore it until any violation of the Loan Agreement in actual practice should compel me to take action.
The terms of the engineer's engagement showed a further tendency to disregard the Loan Agreement, and were such that a British subject could not, under ordinary circumstances, have accepted; but here I had again decided not to intervene, and to trust to the good faith of the Board of Communications in loyally carrying out the stipulations of the loan, in spite of these preliminary acts. I held no brief for Mr. Foord personally, whom I scarcely knew, and who had not approached me on the subject in any way; and my motive in thus expressing my views was solely to emphasize the necessity of seeing that the proceeds of this British loan were expended to the best advantage. In this I felt a personal responsibility, and I must look to the Board to give Mr. Foord a full measure of support. Without watchfulness and assistance on their part it was probable that the engineer would not be able to contend single-handed against the policy of the local Notables, which hitherto had not been characterized by any great measure of good sense or administrative ability, and I should do all in my power to prevent British enterprise from being associated with an undertaking which was unsound. A sufficient example was now being afforded by the Peking-Hankow Railway of the evils of faulty construction, since traffic on this line has been suspended for weeks at a time each summer since it was opened. If Mr. Foord be given sufficient power he would doubtless furnish them with a satisfactory railway on which traffic could run throughout the year, and I now invited his Excellency to give me an explicit assurance that the line would be constructed properly in accordance with the terms of the Loan Agreement.
When the His Excellency said he had no hesitation in giving such an assurance. Loan Agreement was ready for signature on the 6th March last, the provincial Delegates had endeavoured to make a certain alteration in Article 17 concerning the position of the Chief Engineer. Their wishes had been overruled by the Wai-wu Pu, but, in the course of the discussion on this subject, Mr. Bland had himself suggested that steps could be taken subsequently to effect what they required. The arrangement between the Board of Communications and the provincial Companies was merely the outcome of this episode. (See my despatch No. 118 of the 12th March.)
I said that whatever Mr. Bland may have stated while waiting for the signature of his Agreement could not impair the force of the signed document, and that I felt sure he had said nothing to warrant the conclusion of an arrangement or agreement with the provincial Companies such as the Board had made. It would have been beyond his powers to do so, and the only document that I could recognize as of binding force was the Loan Agreement.
Under its terms the Board had appointed Taotai Shih Chao Tseng to be Managing Director—a man of considerable experience in railway affairs. The Chinese Government had the full...
[1940-1]
1.04
604
C.0.
This Document is the Property of His Britannic Majesty's Governme
CHINA RAILWAYS.
CONFIDENTIAL.
vernment.45
[September 142 OCT 08
SECTION 1.
[31932]
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received September 14.)
(No. 365.) Sir,
Peking, August 17, 1908. WITH reference to my despatch No. 357 of the 5th instant respecting the affairs of the Shanghae -Ningpo Railway, I have the honour to inclose a copy of a letter from the representative ad interim of the British and Chinese Corporation, informing me that the Board of Communications had replied in a satisfactory sense to the points raised by Mr. Bland in connection with the fulfilment of the Loan Agreement.
I also have the honour to report that in the course of an interview with Mr. Liang Shih Yi at the Board of Communications on the 14th instant I informed his Excellency that I was aware of the Agreement made between the Board and the Provincial Railway Companies concerning this line, and of the Agreement under which Mr. Foord was engaged as Engineer-in-chief. I observed that the Board's agreement with the Railway Companies, which had not been communicated to me officially, but had been brought to my notice by Mr. Bland, had been made shortly after the Loan Agreement was signed, and that it conflicted with the provisions of that contract. Mr. Bland had desired me to demand its revocation, but I had determined to ignore it until any violation of the Loan Agreement in actual practice should compel me to take action.
The terms of the engineer's engagement showed a further tendency to disregard the Loan Agreement, and were such that a British subject could not, under ordinary circumstances, have accepted; but here I had again decided not to interveue, and to trust to the good faith of the Board of Communications in loyally carrying out the stipulations of the loan, in spite of these preliminary acts. I held no brief for Mr. Foord personally, whom I scarcely knew, and who had not approached me on the subject in any way; and my motive in thus expressing my views was solely to emphasize the necessity of seeing that the proceeds of this British loan were expended to the best advantage. In this I felt a personal responsibility, and I must look to the Board to give Mr. Foord a full measure of support. Without watchfulness and assistance on their part it was probable that the engineer would not be able to contend single-handed against the policy of the local Notables, which hitherto had not been characterized by any great measure of good sense or administrative ability, and I should do all in my power to prevent British enterprise from being associated with an undertaking which was unsound. A sufficient example was now being afforded by the Peking Hankow Railway of the evils of faulty construction, since traffic on this line has been suspended for weeks at a time each summer since it was opened. If Mr. Foord be given sufficient power he would doubtless furnish them with a satisfactory railway on which traffic could run throughout the year, and I now invited his Excellency to give me an explicit assurance that the line would be constructed properly in accordance with the terms of the Loan Agreement.
When the His Excellency said he had no hesitation in giving such an assurance. Loan Agreement was ready for signature on the 6th March last, the provincial Delegates had endeavoured to make a certain alteration in Article 17 concerning the position of the Chief Engineer. Their wishes had been overruled by the Wai-wu Pu, but, in the course of the discussion on this subject, Mr. Bland had himself suggested that steps could be taken subsequently to effect what they required. The arrange- ment between the Board of Communications and the provincial Companies was merely the outcome of this episode. (See my despatch No. 118 of the 12th March.
I said that whatever Mr. Bland may have stated while waiting for the signature of his Agreement could not impair the force of the signed document, and that I felt sure he had said nothing to warrant the conclusion of an arrangement or agreement with the provincial Companies such as the Board had made. It would have been beyond his powers to do so, and the only document that I could recognize as of binding force was the Loan Agreement.
Under its terus
Mr. Liang Shih Yi assured me this would be faithfully observed. the Board had appointed Taotai Shih Chao Tseng to be Managing Director-a man of considerable experience in railway affairs. The Chinese Government had the full
}
[1940 -1]
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