[This Document is the Property of His Britannic Majesty's Government.j
Inclosure 2 in No. 1.
Acting Consul-General Willis to Sir J. Jordan,
(No. 67. Confidential.) Sir,
Mukden, October 8, 1908. HIS Excellency M. T. Liang, the Senior Secretary to the Manchurian Govern- ment, called on me yesterday, and in the course of conversation mentioned the following incident, which seems to me worth reporting as illustrative of the policy of the Chinese Eastern Railway, and of the criticism I advanced on their methods in my despatch No. 63, Confidential, of the 1st instant.
It appears that the Chinese Government send a considerable quantity of salt, mainly produced in the neighbourhood of Newchwang, but partly imported from Shanghae, into the Hei Lung Chiang Province. The salt has hitherto been conveyed to its destination by cart in the winter season, but Mr. Liang informed me that the Chinese Eastern Railway had offered the Manchurian Gevernment very favourable terms if they would ship the salt to Vladivostock and forward it thence by train to its destination. The natural railway route for salt from Yingkou to Tsitsilar would be ri Ta Shih Chiao or Mukden and Kuanchengtzu, but the Chinese Eastern Railway declined absolutely to come to any reasonable arrangement for the transport over their lines if the salt were first handled by the South Manchurian Railway.
Mr. Liang expressed himself as sceptical of the reported success of Baron Goto's recent mission to St. Petersburgh, and gave it as his opinion that both the South Manchurian and Chinese Eastern Companies would continue as far as possible to use their lines as instruments for the advancement of the political aims of their respective Governments and to the consequent detriment of the development of the resources of the country and general commercial opportunity.
In support of Mr. Liang's contention I would state that the linking up of the two systems at Changchun seems postponed, at any rate until next spring, and the journey from Kuanchengtzu to Harbin, a distance of 140 miles, still takes about eleven hours, four of which at least are consumed in waiting at unimportant wayside stations. The interchange of goods between the two systems is at present insignificant.
I have, &c. (Signed)
R. WILLIS.
P.S.-In connection with this despatch I would mention that the "Peking and Tien-tsin Times" of the 6th instant states that it is reported that the journey between Shanghae and Moscow via Vladivostock can now be made in fourteen days.
R. W.
CHINA.
CONFIDENTIAL.
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(No. 78.)
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[April 21.]
Prco (12 JUL 09)
SECTION 1.
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received April 21.)
(Telegraphic.) P.
Peking, April 21, 1909.
TROUBLE at Honan mines of Peking Syndicate. There has already been correspondence between this legation and the syndicate on matter mentioned in your telegram No. 75.
I made verbal representations in strong terms to the Wai-wu Pu, who promised to instruct the governor by telegraph and advise me of the result. I insisted on necessity of issuing notices at once in accordance with the terms of the agreement of the 1st April.
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