This Document is the Property of His Britannic Majesty's Government? 606
35745 [September 14 1908]
CHINA RAILWAYS.
CONFIDENTIAL.
[31935]
No. 1.
SECTION 3.
Sir J. Jordan to Sir Edward Grey-(Received September 14.)
(No. 377.) Sir,
Peking, August 21, 1908. IN confirmation of my telegram No. 145 of the 19th instant, respecting the proposed application by the Chinese Central Railways for the Hankow-Chengtu Railway Concession, I have the honour to transmit to you herewith copy of the letter dated the 14th ultimo in which the Board suggested that Mr. Bland should endeavour to raise the question of the Szechuan line in connection with the French demands for reparation on account of the Yunnan frontier incident.
I have already forwarded to you in my despatch No. 338 of the 22nd ultimo Mr. Fraser's despatch No. 38 of the 30th June, reporting that the Viceroy at Wuchang had declined to entertain the suggestion, made by my instructions, that Mr. Bland should proceed to Hankow to negotiate a loan for the line.
I have, &c. (Signed)
J. N. JORDAN.
Dear Sir,
Inclosure in No. 1.
Chinese Central Railways to Mr. Bland.
110, Cannon Street, London, July 14, 1908.
I BEG to acknowledge the receipt of your letter of the 20th June, in which you submit, for the consideration of the Board, a proposition for the cancelling of the Pukow-Sinyang Preliminary Agreement in exchange for a Peking-Hankow Redemption Loan to be arranged on terms and conditions set out in your letter. In reply, I am to state that my Directors are unable to give you the authority asked for in the last paragraph of your letter, viz., to submit proposals in this sense to the Chinese Government. They think it would be impolitic, under any circumstances, to approach the Chinese Government with a proposal to cancel a Concession regularly obtained as the Pukow-Sinyang was. Such a step would seriously weaken our position and embarrass the British Minister if his aid had to be invoked later. It may be that the Chinese Government finds itself in a difficulty in giving effect to the Preliminary Agreement, but it is not a difficulty of our creating, and it is for them to make a counter-proposition and not for us.
As regards the Peking-Hankow Redemption Loan, you will have learnt from my No. 43 how the matter stands as between the Chinese Central Railways and Hong Kong and Shanghae Bank. Since the date of that letter it is understood that the negotiations between the bank and the Chinese Government have continued, and, indeed, are approaching completion, so it is extremely unlikely that there will be any opportunity of your intervening in that business.
There is, however, another alternative which might afford a solution to the Pukow-Sinyang difficulty, if there be a difficulty, and to which the Board would wish to draw your attention, and that is a Concession for the Szechuan line from Hankow to Chengtu. This is a line of so much greater importance that my Directors would be willing to postpone their rights to the Pukow-Sinyang line or possibly waive their rights altogether if a satisfactory agreement for the Szechuan line could be negotiated. At present the position stands that you have obtained the aid of the British Minister in calling on the Chinese Government to proceed with the Final Agreement for the Pukow-Sinyang line. To that application so far apparently no reply has been made. The application, however, cannot be ignored, and if difficulties are pleaded such as you anticipate, an opportunity would arise to introduce the Szechuan business as an alternative without in so many words offering to cancel the Pukow-Sinyang Preliminary Agreement.
As you are aware, we have claims for the Szechuan line independently altogether of the Pukow-Sinyang. Four years have now elapsed since the formal promise was
(1940 0-3]
This Document is the Property of His Britannic Majesty's Government? 606
35745 [September 149€ 08
CHINA RAILWAYS.
CONFIDENTIAL.
[31935]
No. 1.
SECTION 3.
Sir J. Jordan to Sir Edward Grey-(Received September 14.)
(No. 377.) Sir,
Peking, August 21, 1908. IN confirmation of my telegram No. 145 of the 19th instant, respecting the proposed application by the Chinese Central Railways for the Hankow-Chengtu Railway Concession, I have the honour to transmit to you herewith copy of the letter dated the 14th ultimo in which the Board suggested that Mr. Bland should endeavour to raise the question of the Szechuan line in connection with the French demands for reparation on account of the Yannan frontier incident.
I have already forwarded to you in my despatch No. 338 of the 22nd ultimo Mr. Fraser's despatch No. 38 of the 30th June, reporting that the Viceroy at Wuchang had declined to entertain the suggestion, made by my instructions, that Mr. Bland should proceed to Hankow to negotiate a loan for the line.
I have, &c. (Signed)
J. N. JORDAN.
Dear Sir,
Inclosure in No. 1.
Chinese Central Railways to Mr. Bland.
110, Cannon Street, London, July 14, 1908.
I BEG to acknowledge the receipt of your letter of the 20th June, in which you submit, for the consideration of the Board, a proposition for the cancelling of the Pukow--Sinyang Preliminary Agreement in exchange for a Peking-Hankow Redemption Loan to be arranged on terms and conditions set out in your letter. In reply, I am to state that my Directors are unable to give you the authority asked for in the last paragraph of your letter, viz., to submit proposals in this sense to the Chinese Govern- ment. They think it would be impolitic, under any circumstances, to approach the Chinese Government with a proposal to cancel a Concession regularly obtained as the Pukow-Sinyang was. Such a step would seriously weaken our position and embarrass the British Minister if his aid had to be invoked later. It may be that the Chinese Government finds itself in a difficulty in giving effect to the Preliminary Agreement, but it is not a difficulty of our creating, and it is for them to make a counter-proposition and not for us.
As regards the Peking-Hankow Redemption Loan, you will have learnt from my No. 43 how the matter stands as between the Chinese Central Railways and Hong Kong and Shanghae Bank. Since the date of that letter it is understood that the negotiations between the bank and the Chinese Government have continued, and, indeed, are approaching completion, so it is extremely unlikely that there will be any opportunity of your intervening in that business,
There is, however, another alternative which might afford a solution to the Pukow- Sinyang difficulty, if there be a difficulty, and to which the Board would wish to draw your attention, and that is a Concession for the Szechuan line from Hankow to Chengtu. This is a line of so much greater importance that my Directors would be willing to postpone their rights to the Pukow-Sinyang line or possibly waive their rights altogether if a satisfactory agreement for the Szechuan line could be negotiated. At present the position stands that you have obtained the aid of the British Minister in calling on the Chinese Government to proceed with the Final Agreement for the Pukow-Sinyang line. To that application so far apparently no reply has been made. The application, however, cannot be ignored, and if difficulties are pleaded such as you anticipate, an opportunity would arise to introduce the Szechuan business as an alter- native without in so many words offering to cancel the Pukow-Sinyang Preliminary Agreement.
As you are aware, we have claims for the Szechuan line independently altogether of the Pukow-Sinyang. Four years have now elapsed since the formal promise was
(1940 0-3]
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