2
to show that railway construction, even in Great Britain, with its Parliamentary and other legal requirements, does not contrast so favourably as is generally supposed with the methods obtaining in China. Mr. Liang Shib-yi, the Director of Railways, is admitted by foreigners who have made a special study of the subject to be exceptionally well informed on all that appertains to railway administration; and it requires an expert knowledge, to which I can lay no claim, to try conclusions with him on questions of this kind.
Dear Sir,
I have, &c.
(Signed) J. N. JORDAN.
Inclosure 1 in No. 1.
Messrs. Jardine, Matheson, and Co. to Mr. Bland.
Hong Kong, April 30, 1908. Canton-Kowloon Railway-Mr. Grove, the Engineer-in-chief of the above railway, has had considerable discussion and correspondence with the Chinese authorities regarding the proper and just price to be paid for a piece of reclaimed and landed land at Canton, which has been selected by him and approved by the Viceroy, as the site for the terminus of this line.
According to Mr. Grove, the actual cost to the Chinese of reclaiming this land (which we understand is Government property) could not have exceeded 111,078 dollars, whereas the price first demanded was 400,000 taels! a figure which, owing to Mr. Grove's representations, has since been reduced to 280,000 dollars. According to Article 7, paragraph 2, of the Loan Agreement, the Viceroy is supposed to acquire land for this railway at actual cost price, and though this is perhaps not possible under conditions prevailing, we think Mr. Grove quite rightly maintains that a profit to the officials concerned of about 169,000 dollars on 51 mow of land is altogether contrary to the letter or spirit of the Agreement, and if "squeezes" on land purchases are to continue on this scale the loan funds will not be sufficient to pay for the completion of the railway.
We inclose for your information copies of correspondence in the above connection, between Mr. Grove and the Managing Director, Mr. Wei Han, from which you will observe that the price of 280,000 dollars has apparently been sanctioned by the Board of Communications and by the Viceroy, and Mr. Grove having carried his protest as far as he deemed advisable, the matter was referred to us. We think Mr. Grove has handled this matter with considerable tact, for while securing a very substantial reduction on the price which these officials first contemplated charging the railway, he has nevertheless avoided all friction. It is evident to us, however, that friction would result if further opposition were offered to payment of the sum demanded, and as this would be very undesirable we considered it best to advise Mr. Grove to sanction the payment. We would suggest for your consideration the advisability of noting a protest at the Board of Communications against the excessive cost of this land, and would further ask you to show the correspondence and explain the matter to the British Minister for his information,
We are, &c.
(Signed) JARDINE, MATHESON, and Co.
Inclosure 2 in No. 1.
Acting Consul-General Fox to Sir J. Jordan.
(No. 31. Confidential.) Sir,
July 25, 1908.
I AM confidentially informed that the Administration of the Chinese section of the Canton-Kowloon Railway are experiencing considerable difficulty in obtaining the land required for railway purposes.
Article 7 of the Loan Agreement states that the necessary land shall be acquired by the Viceroy; but as the control of the line has been taken away from the Viceroy and placed in the hands of a Director-General in Peking, the former official, not unnaturally, declines to afford the Administration any assistance in the matter. The local officials, taking their cue from the Viceroy, adopt a similar attitude, and refuse to bring any pressure to bear on native owners to make them surrender their land. The Administration are therefore obliged to make the best terms they can, with the result that land is being acquired very slowly, and in most cases at exorbitant rates. Not only are they being charged at an average rate of over 100 dollars a mow for land which is, for the most part, waste ground, but they are often forced to buy land they do not require. In one case where the line runs through the outskirts of a small village, necessitating the removal of a few houses, the Administration have been obliged by the local gentry to buy up the whole village.
Mr. Grove, the Engineer-in-chief of the line, to whom I am indebted for this information, estimates that at the present rate of purchase a sum of not less than 120,000l. will be required on this account, and he fears that this unexpectedly heavy expenditure will make it impossible for him to construct the line for the sum originally agreed upon.
He is at present engaged, at the request of the Director-General in Peking, in drawing up a detailed estimate of the cost of construction.
Materials have been accumulated and all preparations made to commence the building of the permanent way as soon as the rainy season is over, which will probably be about the beginning of September. Unless, however, the rate at which land is at present being acquired can be considerably accelerated, work will be stopped in a few months' time for want of land.
Mr. Grove has brought this state of affairs to the notice of the Director-General in an official report.
The progress of the railway is being hampered in another direction, in this case due to the action of the Chinese Administration.
The Director-General, relying on the clause in Article 9 of the Loan Agreement, which provides that, with a view to encouraging Chinese industries, Chinese materials are to be preferred, insists that all orders for railway materials shall first be submitted to the Tong Shan and other iron and steel works for tender. As many of the materials required cannot be supplied by these works, it simply means that the placing of the order with a home manufacturer is delayed while the local manufacturers are being communicated with. As a case in point, Mr. Grove mentioned that he had requested permission to purchase some steel caissons for bridge work from a firm in England who made a speciality of these articles, the steel plates of which the caissons were composed being unobtainable in China. The request was refused by the Director-General, who, quoting the clause above referred to, instructed Mr. Grove to place the order with a local firm. This will be done, and as a consequence the delivery of the caissons will be delayed by at least two months, as the plates must be imported from England.
With regard to a paragraph in the "China Mail" newspaper of the 23rd July, intimating that things are not as they should be on the Chinese section of the Canton-Kowloon Railway, and stating that the Board of Communications had requested the Viceroy to hold an inquiry, Mr. Grove informs me that, unless the difficulties with regard to land purchase are referred to, he is unable to understand the meaning of the paragraph. His relations with Taotai Wei Han, the Managing Director, are excellent, and as far as the local administration of the line is concerned, there is complete harmony between the Chinese and foreign staffs.
I am sending a copy of this despatch to the Governor of Hong Kong.
I have, &c. (Signed) HARRY H. FOX.
158
2
to show that railway construction, even in Great Britain, with its Parliamentary and other legal requirements, does not contrast so favourably as is generally supposed with the methods obtaining in China. Mr. Liang Shib-yi, the Director of Railways, is admitted by foreigners who have made a special study of the subject to be exceptionally well informed on all that appertains to railway administration; and it requires an expert knowledge, to which I can lay no claim, to try conclusions with him on questions of this kind.
Dear Sir,
I have, &c.
(Signed) J. N. JORDAN.
Inclosure 1 in No. 1.
Messrs. Jardine, Matheson, and Co. to Mr. Bland.
Hong Kong, April 30, 1908. Canton-Kowloon Railway-Mr. Grove, the Engineer-in-chief of the above railway, bas had considerable discussion and correspondence with the Chinese authorities regarding the proper and just price to be paid for a piece of reclaimed and banded land at Canton, which has been selected by him and approved by the Viceroy, as the site for the terminus of this line.
According to Mr. Grove, the actual cost to the Chinese of reclaiming this land (which we understand is Government property) could not have exceeded 111,078 dollars, whereas the price first demanded was 400,000 taels! a figure which, owing to Mr. Grove's representations, has since been reduced to 280,000 dollars. According to Article 7. paragraph 2, of the Loan Agreement, the Viceroy is supposed to acquire land for this railway at actual cost price, and though this is perhaps not possible under con- ditions prevailing, we think Mr. Grove quite rightly maintains that a profit to the officials concerned of about 169,000 dollars on 51 mow of land is altogether contrary to the letter or spirit of the Agreement, and if "squeezes" on land purchases are to continue on this scale the loan funds will not be sufficient to pay for the completion of the .railway.
We inclose for your information copies of correspondence in the above connection, between Mr. Grove and the Managing Director, Mr. Wei Han, from which you will observe that the price of 280,000 dollars has apparently been sanctioned by the Board of Communications and by the Viceroy, and Mr. Grove having carried his protest as far as he deemed advisable, the matter was referred to us. We think Mr. Grove has handled this matter with considerable tact, for while securing a very substantial reduction on the price which these officials first contemplated charging the railway, he has nevertheless avoided all friction. it is evident to us, however, that friction would result if further opposition were offered to payment of the sum demanded, and as this would be very undesirable we considered it best to advise Mr. Grove to sanction the payment. We would suggest for your consideration the advisability of noting a protest at the Board of Communications against the excessive cost of this land, and would further ask you to show the correspondence and explain the matter to the British Minister for his information,
We are, &c.
(Signed) JARDINE, MATHESON, and Co.
Inclosure 2 in No. 1.
Acting Consul-General Fox to Sir J. Jordan.
(No. 31. Confidential.) Sir,
July 25, 1908.
I AM confidentially informed that the Administration of the Chinese section of the Canton-Kowloon Railway are experiencing considerable difficulty in obtaining the land required for railway purposes.
Article 7 of the Loan Agreement states that the necessary land shall be acquired by the Viceroy; but as the control of the line has been taken away from the Viceroy and placed in the hands of a Director-General in Peking, the former official, not unnaturally, declines to afford the Administration any assistance in the matter. The local officials, taking their cue from the Viceroy, adopt a similar attitude, and refuse to
3
bring any pressure to bear on native owners to make them surrender their land. The Administration are therefore obliged to make the best terms they can, with the result that land is being acquired very slowly, and in most cases at exorbitant rates. Not only are they being charged at an average rate of over 100 dollars a mow for land which is, for the most part, wasle ground, but they are often forced to buy land they do not require. In one case where the line runs through the outskirts of a small village, necessitating the removal of a few houses, the Administration have been obliged by the local gentry to buy up the whole village.
Mr. Grove, the Engineer-in-chief of the line, to whom I am indebted for this information, estimates that at the present rate of purchase a sum of not less than 120,0007, will be required on this account, and he fears that this unexpectedly heavy expenditure will make it impossible for him to construct the line for the sum originally agreed upon.
He is at present engaged, at the request of the Director-General in Peking, in drawing up a detailed estimate of the cost of construction,
Materials have been accumulated and all preparations made to commence the building of the permanent way as soon as the rainy season is over, which will probably be about the beginning of September. Ualess, however, the rate at which land is at present being acquired can be considerably accelerated, work will be stopped in a few months' time for want of land.
Mr. Grove has brought this state of affairs to the notice of the Director-General in an official report.
The progress of the railway is being hampered in another direction, in this case due to the action of the Chinese Administration.
The Director-General, relying on the clause in Article 9 of the Loan Agreement, which provides that, with a view to encouraging Chinese industries, Chinese materials are to be preferred, insists that all orders for railway materials shall first be submitted to the Tong Shan and other iron and steel works for tender. As many of the materials required cannot be supplied by these works, it simply means that the placing of the order with a home manufacturer is delayed while the local manufacturers are being communicated with. As a case in point, Mr. Grove mentioned that he had requested permission to purchase some steel caissons for bridge work from a firm in England who made a speciality of these articles, the steel plates of which the caissons were composed being unobtainable in China. The request was refused by the Director-General, who, quoting the clause above referred to, instructed Mr. Grove to place the order with a local firm. This will be done, and as a consequence the delivery of the caissons will be delayed by at least two months, as the plates must be imported from England.
With regard to a paragraph in the China Mail " newspaper of the 23rd July, intimating that things are not as they should be on the Chinese section of the Canton- Kowloon Railway, and stating that the Board of Communications had requested the Viceroy to hold an inquiry, Mr. Grove informs me that, unless the difficulties with regard to land purchase are referred to, he is unable to understand the meaning of the paragraph. His relation with Taotai Wei Han, the Managing Director, are excellent, and as far as the local administration of the line is concerned, there is complete harmony between the Chinese and foreign staffs.
I am sending a copy of this despatch to the Governor of Hong Kong,
HARRY H. FOX.
I have, &c. (Signed)
158
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