CO129-360 - Public Offices - 1909 — Page 104

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With reference to the last paragraph of your despatch under acknowledgment, I have had frequent conversations with the French Minister regarding the Yünnan incident, and I am addressing you on the subject in a separate despatch. M. Bapst has always given me to understand that the Railway Concession in Shansi was no longer to be regarded as one of the conditions of settlement, and the prevailing impression here has been that it was virtually dropped. M. Bapst, however, now informs me that the extension of the line to Hsianfu is still under consideration, and he seems to hope that on the completion of some surveys which are now being carried out an opportunity may occur for reviving the French claim to undertake the work of construction. On this point I would only add that my experience during the past two years has firmly convinced me of the wisdom of your decision not to press for new Concessions if existing engagements are carried into effect, and this has become the policy which practically all the Powers are now adopting in China.

I have, &c. (Signed)

(Translation.)

Inclosure 1 in No. 1.

Imperial Decree issued on October 28, 1908.

J. N. JORDAN.

IN view of the paramount importance of the Hankow-Canton Railway, we specially appointed the Grand Secretary and Grand Councillor Chang Chih-tung to be Director- General. We have recently been informed by him that the progress of the railway has been greatly hampered owing to divided control and divergent views in regard to its management. This delay cannot be permitted to continue, and we therefore direct that in future the responsibility for procuring the capital, engaging employés, developing the advantages, and removing abuses in regard to this railway rests with Chang Chih-tung. Let him take a broad view of the whole situation, fix a strict limit of time for the completion of the undertaking, prepare regulations suited to the conditions existing in each of the three provinces concerned, and exercise his control and direction where The Board of Communications and the Governors-General and Governors of Hupei, Hunan, and Kuantung are required to assist him zealously, and not to hinder him in any way. The Directors and Sub-Directors appointed by the provinces must keep within the limits of their powers, and in the case of any peculation, incitement to disturbances, usurpation of authority, or other abuses on the part of any officials, gentry, or merchants connected with the railway, whereby the administration of the line is After the issue of obstructed, Chang Chih-tung should at once deal with the offenders. this Decree, Chang Chib-tung and the other officers concerned should combine to hasten the completion of the enterprise and permit no delay, so that there may be undivided control, and this important work may not be impeded.

necessary,

(No. 68.) Sir,

Inclosure 2 in No. 1.

Consul-General Fraser to Sir J. Jordan.

Hankow, October 23, 1908. BEGGING reference to my despatches Nos. 62 and 65 of the 7th and 10th instant respectively, reporting his Excellency Chang Chih-tung's intervention in the question of the building of Hupei railways to Yochou and to Ichang, I have the honour to forward copies and translations of further telegrams from his Excellency to the Wachang authorities, and to report that the local native papers are full of protests against a foreign loan by leading gentry and by Hupei students in Japan,

*

On the 20th instant a mass meeting of gentry, students, military, and traders was called by Liu, Comprador of the Banque de l'Indo-Chine and five of his fellows in the Commercial Association, who had previously circulated a scheme for the building of the line to Ichang and Siang-Yang by a purely mercantile Company, and, according to the It was addressed by Liu's Hupei News," was attended by several hundred persons. supporters, who argued that a loan on any terms entailed sacrifice of all trading and territorial rights; that the construction could be let in short sections and paid for half in share scrip; that the Board, which knew well how profitable the line would prove, should not be allowed to do Hupei out of such a valuable enterprise, and that his Excellency It is curious to find Chang would be only too well pleased to find a loan unnecessary.

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the examples of other provinces where railways have been left to private management cited as though this arrangement had proved eminently successful, and had worked without friction or difficulty.

The subscription list published recalls the lists put out at the time of the Shanghae- Hangchow-Ningpo Railway agitation, and gives no indication of the very depressed state of all branches of trade in this port. Liu heads it with 500,000 shares--presumably at 5 dollars--though it is common knowledge that his readily convertible funds are to seek, and that his title to the land round Hankow claimed by him is in many cases dubious. A bank manager and a money-lender sign for 250,000 dollars each, and one of the gentry for 200,000 dollars. An ex-steamer comprador, now, by Shông Kung-Pao's favour, in a prominent post in the new Ironworks and Mining Company, comes next with 10,000 shares. Various impecunious gentry undertake to get vast blocks of shares taken up; but there are very few actual promises of even 5,000 dollars, apart from these. His Excellency Chang, when Viceroy here, used to admit that he shrank from rousing popular and student clamour by a loan; and it remains to be seen whether he will stand firm in his present attitude towards an agitation which arose only when his Excellency proposed to take the three years' apathy of the Hankow public towards this line as a justification for taking it out of their hands.

I have, &c. (Signed) E. H. FRASER.

Inclosure 3 in No. 1.

Extracts from the "Eastern Times" of October 15, 1908.

Cypher Telegrams sent by Chang Chih-tung to the Wuchung Viceroy, the first being also for the Provincial Council, the Railway Bureau, and Gentry.

(1.)

(Translation.)

September 20, 1908. MY telegram of the 19th September sent last evening must have reached you. The present telegram supplements it on a point 1 omitted to touch upon. I obtained Imperial sanction on several occasions to Hupei's having charge of the Hupei section of the Hankow-Szechuan line; and I telegraphed last year to the Wai-wu Pu about borrowing for its construction. The Board of Communication's present urging is only insistence on a fixed limit for provincial arrangements being made with all haste on pain of delay leading to the Board's taking over the business. It is absurd to call this forcible reversal of precedent just as arrangements are making, and grabbing for Board construction. Your Excellency is a newcomer and may not be familiar with the history of the case and so misapprehend my position, and, in addition, that I am simply afraid the sums needed are beyond raising.

(Translation.)

Your telegram of the 20th September.

(2.)

September 22, 1908.

I am greatly impressed with your correct appreciation of the fact that Hupei ought to make its own arrangements for developing railways which are to its proper profit.

There is no need to be anxious whether the gentry and people will or will not approve of raising a loan.

The lines are so long and the cost so vast that, in view of Hupei's extraordinary poverty, the work cannot start without a loan. The intelligent gentry and people should understand the folly of throwing away a great profit for their province. For a loan raised by the authorities, with the proviso that traders and people may buy bonds up to 50 per cent,, on the general lines of the Tien-tain-P'uk'ou arrangement is a most Thus the Hunan advantageous business, and precludes any justification for refusal. gentry, after all their fuss and clamour against foreign loans, have recently changed their tune, and come to see that Hunan shares cannot attain success-proposing to move for an official loan to start work in combination with Hunan share capital. If even the Hunanese have awakened to comprehension, there need be no doubt about Hupei!

I hope you will let me have an early outline of future deliberations.

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