605
C.O.
[This Document is the Property of His Britannic Majesty's Government.
145
2
responsibility for this loan on their shoulders, and they felt confident that under Taotai Shih's management all would go well. Up to the present it was gratifying to see that the loan had been floated half a point higher than the Tien-tsin-Pukou loan immediately preceding it, and that the bonds now stood above par. This was clear enough proof that confidence in the possibilities of this railway was not shaken up to the present.
As regards the engineer's Agreement, he also had not approved of the manner in which it was drawn up, and had told Taotai Shih to alter it--but it was too late; Mr. Foord had already signed. The experience derived from the employment of other British engineers made him feel sure that it was unnecessary to draw such Agreements so strictly, as it was not from the part of the engineer that trouble and friction arose, but from the agents, notably Messrs. Jardine, Matheson, and Co., or the British and Chinese Corporation. In the present instance this difficulty did not exist, since the control was entirely vested in the Board, and they could be relied on to see that the engineer was given a fair field.
I admitted the force of much that his Excellency had said, especially with regard to the confidence which China is still fortunate enough to enjoy on the London market. I hoped this would long continue, but as a word of friendly caution I felt bound to say that it would not take much to destroy this feeling. If, for example, the provincial Companies interfere with the construction of the Shanghae-Ningpo Railway, the publication in the English press of an official account of such proceedings would, I was sure, have an immediate and far-reaching effect on Chinese credit. I trusted that there would never be occasion to take such action.
The conversation then passed to other topics.
CHINA RAILWAYS,
CONFIDENTIAL.
(31680)
(No. 116.) (Telegraphic.) P.
No. 1.
Sir Edward Grey to Sir J. Jordan.
2 OCT 08
[September 14.]
SECTION 2.
Foreign Office, September 14, 1908. PLEASE see your telegram No. 144 of the 13th ultimo regarding the Bhamo-Tengyueh Railway,
We concur in your view that at this stage it is advisable to explain the proposals to the Wai-wu Pu, and endeavour to induce them to accept them.
[1940 0-2]
I have, &c.
(Signed)
J. N. JORDAN.
Sir,
Inclosure in No. 1.
British and Chinese Corporation to Sir J. Jordan.
Peking, August 11, 1908. HAVING reference to Mr. Bland's despatch to your Excellency of the 31st ultimo, on the subject of the delay caused by the Chinese Government in depositing with the Hong Kong and Shanghae Bank security for the payment of interest in accordance with the terms of the Shanghae-Hangchow-Ningpo Railway Loan Agreement (in which was inclosed copy of the correspondence between himself and his Excellency Liang Shih Yi), I have now the honour to inform your Excellency that I am in receipt of a despatch from his Excellency Liang stating that so soon as the loan proceeds have been paid to the credit of the Chinese Government funds will be deposited in the Hong Kong and Shanghae Bank in accordance with the conditions of Article 9 of the Loan Agreement.
With regard to the appointment of the Managing Director, I have the honour to state that in a despatch dated the 7th instant Mr. Bland is officially informed by his Excellency Liang that the authority for the appointment of Taotai Shih Chao Tseng, previously communicated on the 23rd ultimo, is derived from the Yu-chuan Pu, in whom rests the final responsibility for the proper construction and control of the railway, and that all questions that may arise in future having reference to the construction of the line are to be arranged between himself and the Engineer-in-chief.
I have also the honour to inform your Excellency that an Agreement has been signed between the Managing Director and Mr. Foord, as Engineer-in-chief of the Shanghae-Hangchow-Ningpo Railway.
I have, &c.
(For Mr. J. O. P. Bland, representative in China),
G. A. ROBERTSON
(Signed)
605
C.0.
[This Document is the Property of His Britannic Majesty's Government.145
2
responsibility for this loan on their shoulders, and they felt confident that under Taotai Shih's management all would go well. Up to the present it was gratifying to see that the loan had been floated half a point higher than the Tien-tsin-Pukou loan immediately preceding it, and that the bonds now stood above par. This was clear enough proof that confidence in the possibilities of this railway was not shaken up to the present.
As regards the engineer's Agreement, he also had not approved of the manner in which it was drawn up, and had told Taotai Shib to alter it--but it was too late; Mr. Foord had already signed. The experience derived from the employment of other British engineers made him feel sure that it was unnecessary to draw such Agreements so strictly, as it was not from the part of the engineer that trouble and friction arose, but from the agents, notably Messrs. Jardine, Matheson, and Co., or the British and Chinese Corporation. In the present instance this difficulty did not exist, since the control was entirely vested in the Board, and they could be relied on to see that the engineer was given a fair field.
I admitted the force of much that his Excellency had said, especially with regard to the confidence which China is still fortunate enough to enjoy on the London market. I hoped this would long continue, but as a word of friendly caution 1 felt bound to say that it would not take much to destroy this feeling. If, for example, the provincial Companies interfere with the construction of the Shanghae-Ningpo Railway, the publication in the English press of an official account of such proceedings would, I was sure, have an immediate and far-reaching effect on Chinese credit. I trusted that there would never be occasion to take such action.
The conversation then passed to other topics.
CHINA RAILWAYS,
CONFIDENTIAL.
(31680]
(No. 116.) (Telegraphic.) P.
No. 1.
Sir Edward Grey to Sir J. Jordan.
2 OCT 08
[September 14.]
SECTION 2.
Foreign Office, September 14, 1908. PLEASE see your telegram No. 144 of the 13th ultimo regarding the Bhano- Tengyueh Railway,
We concur in your view that at this stage it is advisable to explain the proposals to the Wai-wu Pu, and endeavour to induce them to accept them.
[1940 0-2]
I have, &c.
(Signed)
J. N. JORDAN.
Sir,
Inclosure in No. 1.
British and Chinese Corporation to Sir J. Jordan.
Peking, August 11, 1908. HAVING reference to Mr. Bland's despatch to your Excellency of the 31st ultimo, on the subject of the delay caused by the Chinese Government in depositing with the Hong Kong and Shanghae Bank security for the payment of interest in accordance with the terms of the Shanghae-Hangchow-Ningpo Railway Loan Agreement (in which was inclosed copy of the correspondence between himself and his Excellency Liang Shih Yi), I have now the honour to inform your Excellency that I am in receipt of a despatch from his Excellency Liang stating that so soon as the loan proceeds have been paid to the credit of the Chinese Government funds will be deposited in the Hong Kong and Shanghae Bank in accordance with the conditions of Article 9 of the Loan Agreement.
With regard to the appointment of the Managing Director, I have the honour to state that in a despatch dated the 7th instant Mr. Bland is officially informed by his Excellency Liang that the authority for the appointment of Taotai Shih Chao Tseng, previously communicated on the 23rd ultimo, is derived from the Yu-chuan Pu, in whom rests the final responsibility for the proper construction and control of the railway, and that all questions that may arise in future having reference to the construction of the line are to be arranged between himself and the Engineer-in-chief.
I have also the honour to inform your Excellency that an Agreement has been signed between the Managing Director and Mr. Foord, as Engineer-in-chief of the Shanghae-Hangchow-Ningpo Railway.
I have, &c.
(For Mr. J. O. P. Bland, representative in China),
G. A. ROBERTSON
(Signed)
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