This Document is the Property of His Britannic Majesty's Government.
AFFAIRS OF CHINA.
CONFIDENTIAL.
[October 3.] Ra
30.0.
39169
TR 27 001 08: SECTION 1.
[34150]
No. 1.
Sir J. Jordan to Sir Edward Grey.--(Received October 3)
(No. 375. Confidential.) Sir,
Peking, August 20, 1908. IN the course of conversation with Mr. Liang Shih Yi at the Board of Communications on the 14th August I asked what the Chinese Government intended to do in the matter of railway development, in view of their present reluctance to borrow foreign capital, and whether they had any definite programme before them.
Mr. Liang said that they intended to do what they could with Chinese capital. They could at least make the earthworks of the various lines already granted to native Companies, and raise funds later on to complete construction and equip these railways; or they could concentrate all the native railway funds on one trunk line and complete that. Either method of procedure would, he admitted, be slow and unpracticable; but, he said, as long as exterritoriality lasted there could be no real opening up of the country. Great efforts were being made to reform the legal system of the Empire, and he thought that in six or seven years exterritoriality would be abolished. Then China would go ahead, and foreign capital would be freely admitted for mining and railway enterprises.
I observed that while I could not take so sanguine a view as to the period of time which must elapse before Consular jurisdiction disappeared, it seemed to me advisable, if this was the cherished design of China, that she should make a beginning by reforming the Mixed Court at Shanghae. There was a judicial establishment standing under the closest observation of foreigners, and a reform of its constitution would do more to satisfy foreigners that China seriously intended to introduce Western conceptions of law than any number of superficial changes in up-country yamêns.
At the same time I could not see why the existence of Consular jurisdiction with mining in far distant parts should interfere with railway development in the least.
Of the Empire it might be otherwise; but the construction of railways must at least keep pace with every other change in the country, as without communications every form of progress was being retarded.
On the following day I received the letter, of which I have the honour to inclose a copy, which throws light on the part now being played by the Board of Communications.
The writer of this letter, Mr. J. K. Tweed, was formerly in the Hong Kong and Shanghae Bank, and is now a stockbroker in Shanghae, besides being connected with the Anglo-Japanese Bank (Limited). Through the compradore of this bank, who is the brother of a prominent official, Mr. Tweed was invited to come to Peking to discuss with Mr. Liang Shih Yi a loan for 7,000,0001.
The terms offered Mr. Liang were precisely those which Mr. E. G. Hillier had refused a week before (see my despatch No. 354 of the 4th August), and they were in turn refused by Mr. Tweed.
I understand from this gentleman that they are now trying other sources, and that, if they fail, they may be inclined to try the scheme of Treasury bills mentioned in Mr. Tweed's letter.
I have, &c.
(Signed)
J. N. JORDAN,
Your Excellency,
Inclosure in No. 1.
Mr. J. K. Tweed to Sir J. Jordan,
Grand Hôtel des Wagons-Lit, Peking,
August 15, 1908.
I HAVE hesitated up till now to trouble your Excellency regarding my business in Peking, as I did not think the chances of bringing that business to a successful conclusion...
102
This Document is the Property of His Britannic Majesty's Government.
AFFAIRS OF CHINA.
CONFIDENTIAL.
[October 3.] Ra
30.0.
39169
TR 27 001 08: SECTION 1.
[34150]
No. 1.
Sir J. Jordan to Sir Edward Grey.--(Received October 3)
(No. 375. Confidential.) Sir,
Peking, August 20, 1908. IN the course of conversation with Mr. Liang Shih Yi at the Board of Communications on the 14th August I asked what the Chinese Government intended to do in the matter of railway development, in view of their present reluctance to borrow foreign capital, and whether they had any definite programme before them.
Mr. Liang said that they intended to do what they could with Chinese capital. They could at least make the earthworks of the various lines already granted to native Companies, and raise funds later on to complete construction and equip these railways; or they could concentrate all the native railway funds on one trunk line and complete that. Either method of procedure would, he admitted, be slow and unpracticable; but, he said, as long as exterritoriality lasted there could be no real opening up of the country. Great efforts were being made to reform the legal system of the Empire, and he thought that in six or seven years exterritoriality would be abolished. Then China would go ahead, and foreign capital would be freely admitted for mining and railway enterprises.
I observed that while I could not take so sanguine a view as to the period of time which must elapse before Consular jurisdiction disappeared, it seemed to me advisable, if this was the cherished design of China, that she should make a beginning by reforming the Mixed Court at Shanghae. There was a judicial establishment standing under the closest observation of foreigners, and a reform of its constitution would do more to satisfy foreigners that China seriously intended to introduce Western conceptions of law than any number of superficial changes in up-country yamêns.
At the same time I could not see why the existence of Consular jurisdiction With mining in far distant parts should interfere with railway development in the least.
of the Empire it might be otherwise; but the construction of railways must at least keep pace with every other change in the country, as without communications every form of progress was being retarded.
On the following day I received the letter, of which I have the honour to inclose a copy, which throws light on the part now being played by the Board of Communica- tions.
The writer of this letter, Mr. J. K. Tweed, was formerly in the Hong Kong and Shanghae Bank, and is now a stockbroker in Shanghae, besides being connected with the Anglo-Japanese Bank (Limited). Through the compradore of this bank, who is the brother of a prominent official, Mr. Tweed was invited to come to Peking to discuss with Mr. Liang Shih Yi a loan for 7,000,0001.
The terms offered Mr. Liang were precisely those which Mr. E. G. Hillier had refused a week before (see my despatch No. 354 of the 4th August), and they were in turn refused by Mr. Tweed.
I understand from this gentleman that they are now trying other sources, and that, if they fail, they may be inclined to try the scheme of Treasury bills mentioned in Mr. Tweed's letter.
I have, &c.
(Signed)
J. N. JORDAN,
}
Your Excellency,
Inclosure in No. 1.
Mr. J. K. Tweed to Sir J. Jordan,
Grand Hôtel des Wagons-Lit, Peking,
August 15, 1808.
I HAVE hesitated up till now to trouble your Excellency regarding my business in Peking, as I did not think the chances of bringing that business to a successful conclu-
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