2
and also expressed myself as confident that the sense of justice of His Imperial Highness the Prince Regent would secure that suitable commands were issued to the provincial authorities of Kiangsu and Chekiang for a faithful observance of the loan contract, the terms of which have up to the present been persistently ignored.
I am now in receipt of a despatch from Sir Edward Grey, instructing me that His Majesty's Government regard the situation in this matter with considerable misgiving. It appears that the Kiangsu railway bureau, who are a body of whom the loan agreement takes no cognisance, are allowed complete control of all railway affairs by the Board of Communications, whose authority they ignore; that the managing director and chief engineer are both treated contemptuously by the bureau, the former having resigned in consequence of the bureau's obstruction; and, more serious still, that the railway loan funds in London are being rapidly withdrawn in a manner which gives rise to suspicions that they will not be honestly expended in the construction of the line.
I have the honour to request that I may be favoured with the reply of the Imperial Chinese Government to my memorandum of the 2nd March and note of the 29th March at an early date, for the information of His Majesty's Government.
I avail myself of this opportunity to renew to your Highness the assurance of my highest consideration.
Sir.
Inclosure 2 in No. 1.
Mr. Bland to Sir J. Jordan.
April 29, 1909. I HAVE the honour to enclose for your Excellency's information copy of a letter which I have this day addressed to the director-general of railways, having reference to the Shanghae-Haugchow-Ningpo Railway. I beg to request your Excellency's good offices and intervention with the Chinese Government to put an end to the irregularities therein set forth. In the present instance it will be observed that not only is the loan agreement ignored in regard to the functions and responsibility of the managing director, but occasion has been taken to discriminate against British materials which by the terms of the loan agreement are entitled to preferential
I have, &c.
treatment.
J. O. P. BLAND.
3
of managing director on the 20th ultimo. If a new appointment has been made under anthority of the Yu Chuan Pu, I would ask your Excellency to be so good as to inform me of the fact, for communication to the corporation's agent at Shanghae; at the same time I would request your Excellency to issue fresh instructions to the managing director with a view to ensuring the proper exercise of the functions in accordance with the terms of the loan agreement, and to prevent the commission of further irregularities by the Kiangsu and Chekiang bureaux.
I have, &c.
(Translation.) Sir,
Inclosure 4 in No. 1.
Liang Shih-yi to Mr. Bland.
J. O. P. BLAND.
May 7, 1909.
WITH reference to your letter of the 29th April, wherein you state that the action of the Kiangsu railway bureau in issuing a circular calling for tenders for locomotives in which it is stipulated that these must be supplied by well-known German manu- facturers is a breach of article 18 of the loan agreement, I beg to state that this board has no information on the subject, but I presume that this action was taken owing to the difference in the materials used by various countries. I would point out, however, that the 18th article of the loan agreement provides that "the managing director shall have the right. .. in respect of all purchases of foreign materials, to avail himself of the services of other agents in China or abroad should he see fit to do so," and the provision to which you refer ouly concerns purchases made through the agency of your corporation; it certainly does not include those made through other
agents.
You also enquire what steps have been taken to appoint a successor to Shih Taotai in the post of managing director, and request that instructions be issued to the managing director with a view to ensuring the proper exercise of his functions in accordance with the terms of the loan agreement, and to prevent the commission of further irregularities by the Kiangsu and Chekiang companies. In reply I beg to inform you that, upon the retirement of Shih Taotai, Chou Chin-piao Taotai was at once appointed to the post of managing director of the Shanghae-Hangchow-Ningpo Railway and was instructed to carry out all his duties in accordance with the loan agreement.
I am, &c.
LIANG SHIH-YI.
i
Sir,
Inclosure 3 in No. 1.
Mr. Bland to Liang Shih-yi,
April 29, 1909.
I HAVE the honour to draw your Excellency's attention to a circular letter recently issued by the Kiangsu railway bureau (copy enclosed herewith) calling for tenders for locomotives in which it is stipulated that these must be supplied "by well- known German manufacturers." By article 18 of the Shanghae-Hangchow-Ningpo Railway loan agreement it is laid down that all foreign materials shall be purchased in the open market, and that, at equal rates and qualities, goods of British manufacture shall be given preference over other goods of foreign origin. It is, moreover, stipulated in the loan agreement that the managing director (appointed by and representative of the Yu Chuan Pu) shall call for tenders, and that no orders for materials shall be executed without his authorisation.
Assuming that the Kiangsu bureau has acted in this matter without reference to the Yu Chuan Pu, or its duly appointed representative, I have the honour in bringing the facts, which constitute a most serious breach of the loan agreement to your Excellency's notice, to request that the bureau may be instructed, by telegraph, to recall its circular and to cancel the arrangement therein proposed for receiving and opening these tenders on the 17th proximo.
I avail myself of this opportunity to enquire whether steps have been taken to appoint a successor to Shih Taotai who, it is understood, resigned and vacated the post
* Not printed.
Inclosure 5 in No. 1.
Sir J, Jordan to Prince Ch'ing.
Your Highness,
Peking, May 13, 1909. ON the 29th April, Mr. Bland, agent of the British and Chinese Corporation, wrote a letter to his Excellency Liang Shih-yi, director-general of railways at the Board of Communications, enclosing copy of a circular issued by the Kiangsu railway bureau, calling for tenders for locomotives, in which it is stipulated that these must be supplied "by well-known German manufacturers," and inviting his Excellency's attention to the breach of the Shanghae-Hangchow-Ningpo loan agreement thereby committed.
It was pointed out by Mr. Bland that under article 18 of the agreement all foreign materials should be purchased in the open market, and that, at equal rates and qualities, goods of British manufacture should be given preference over other goods of foreign origin; and that it is stipulated in the same article that the managing director, who is appointed by the Board of Communications, shall call for tenders, and that no orders for materials shall be executed without his authorisation. Mr. Bland requested that the bureau might be instructed by telegraph to recall its circular and to cancel the arrangements therein proposed for receiving and opening the tenders on the 17th of this month.
In a reply to Mr. Bland, dated the 7th May, his Excellency Liang Shih-yi evaded the question, ignored the request to instruct the bureau to conform to the loan agree-
85
No comments yet.
Private notes are available after approval.