31859
[This Document is the Property of His Britannic Majesty's Government.]
RECT
CHINA RAILWAYS.
CONFIDENTIAL.
[29893]
No. 1.
Seof 25 SEP 09
[August 9.]
SECTION 3.
458
Sir J. Jordan to Sir Edward Grey,-(Received August 9.)
(No. 251.) Sir,
Peking, July 12, 1909. WITH reference to my despatch No. 215 of the 17th June, I have the honour to enclose copy of the full report of His Majesty's consul-general at Shanghae upon the circumstances connected with the circular of the Kiangsu Railway Bureau which called for tenders for locomotives of German make. It would appear that the bureau, when the error committed was brought to their notice by Messrs. Jardine, Matheson, and Co., made an attempt to legalise their position, and it is probable that their experience in this matter may tend to make them more careful in the future.
I am still without any reply from the Wai-wu Pu to my complaints in regard to this and other matters connected with the Shanghae-Ningpo Railway.
Inclosure in No. 1.
I have, &c.
J. N. JORDAN.
(No. 49.) Sir,
Consul-General Sir P, Warren to Sir J. Jordan.
Shanghae, June 29, 1909. IN accordance with the instructions contained in your telegram of the 9th instant, I have the honour to report the result of my enquiries into the purchase of German locomotives by the Kiangsu Railway Bureau.
Early in February of this year the bureau, by means of a circular letter addressed to a number of local firms, called for tenders for a locomotive without giving any design and without mentioning any country of origin.
Several of the firms represented that the very meagre information given by the bureau was insufficient to enable them to tender, and in consequence on the 5th April, the day previous to the date for opening tenders, the bureau issued a second circular letter calling for tenders for a locomotive "manufactured by well-known German makers," promising a plan later, and extending the time for opening of tenders to the 17th May (copy and translation enclosed*).
On the 14th May the promised plan and specification were sent in a third circular letter (copy and translation enclosed"), which again extended the time for opening tenders to the 31st May; the plan proved to be a photograph of an engine by Henschel und Sohn, and the specification bore unmistakable evidence of being a translation of an offer already made to the bureau. I enclose both in original.*
On the same date (14th May) an article appeared in the "Hsin Wen Pao" (copy and translation enclosed*), justifying the burcau's action.
On the 17th May Messrs. Jardine, Matheson, aud Co. wrote to the managing director of the Shanghae-Hangchow-Ningpo Railway a letter, a copy of which enclose,* pointing out that the invitation to tender for German locomotives issued by the Kiangsu Bureau was contrary to the provisions of article 18 of the loan agreement. No answer was received to this letter, but on the 18th May the bureau issued a further letter (copy and translation enclosed*) requesting a quotation for a locomotive in accordance with the same plan and specification, but manufactured by well-known British makers.
Tenders were sent in by nine firms on the 31st May, of which I enclose a list,* and a notice appeared in the "Shanghae Mercury" of the same date, which was copied in the native press, stating that Messrs. Carlowitz and Co.'s offer, being the lowest, had been accepted (copy enclosed").
It is interesting to note that Messrs. Carlowitz and Co.'s tender is quoted in American currency, although for a German engine. I am informed that Messrs. Henschel * Not printed
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