CO129-353 - Public Offices - 1908 — Page 689

MANA

685

This Document is the Property of His Britannic Majesty's Government.]

CHINA RAILWAYS.

CONFIDENTIAL.

[41498]

No. 1.

[November 28.]

SECTION 1

C.0

47047

Rec REC 23 DEC 08

(No. 455.) Sir,

Sir J. Jordan to Sir Edward Grey.-(Received November 28.)

WITH reference to my despatch No. 418 of the 15th ultimo, I have the honour to

Peking, October 14, 1908. inclose copy of a despatch of the 1st ultimo from the Acting British Consul-General at Canton, forwarding translations of some interesting official telegrams and a Proclama- tion by the Viceroy Chang which bear on the appointment of the Grand Secretary Chang Chib-tung as Director-General, and on the affairs of the Canton-Hankow Railway generally.

I also transmit copy of a useful Report, which has been prepared by Mr. R. S. Pratt, Assistant in His Majesty's Consulate-General, showing the progress of the work on the Canton section of that railway.*

I have, &c. (Sigued)

J. N. JORDAN.

(Translation.)

Inclosure in No. 1.

Proclamation by Viceroy Chang.

In the matter of a Proclamation.

THE Kuangtung section of the Yuch Han Railway is under commercial control, as has been reported to the Throne on several occasions both by previous Viceroys and by the Board of Communications. A Decree has recently been promulgated appointing a Director-General for the railway in the three provinces in order to exercise a general direction over the affairs of the line and protect the interest of the railway. It has now come to the Viceroy's knowledge that the merchants of Canton and the shareholders settled in foreign ports have been misled by various rumours, and are filled with suspicion and uncertainty. The Viceroy therefore telegraphed to the Board of Communications asking that a telegram should be sent in reply containing an assurance that as the Kuangtung section had already achieved a measure of success, and in view of the different circumstances in Hunan and Hupeh, the line would remain under commercial control.

A reply has now been received to the effect that since the Viceroy has been in office daily progress has been made, which, owing to different conditions peculiar to Hunan and Hupeh, has not been possible in those two provinces. The Board has received a Decree ordering it to appoint an official to inspect the line and examine its finances. This official will take into consideration all the affairs of the line and will superintend the work with a view to avoid any squandering of the shareholders' capital or any waste of time or money. In obedience to this Decree, the Board has appointed a Director-General for the Yueh Han Railway, who will work in co-operation with the Board of Communications and the high authorities of the three provinces to secure the working together in harmony of the three provinces and to push on construction. The duty of this official will be that of exercising a general super- intendence, while the management will rest with the Company. The above provisions are in conformity with those adopted in most countries. There is no case on record, the Board says, of a railway not being subject to State supervision, and it is still more unheard of for such State supervision to have eutailed any loss of the benefit derived from mercantile control. On the other hand, the assistance rendered by each side to the other, and the fact of their being a general superintendence over all three provinces will make it easier for Hunan and Hupch to complete their sections and so hasten their connection with the Kuangtung section, thereby conferring a substantial benefit on the shareholders in that province. As had been agreed, a telegrain has been sent to the Company informing them that they will be still permitted a free hand in matters

* Not printed

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