CO129-363 - Public Offices & Others - 1909 — Page 212

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Mr. Bellingham does nothing to have the terms altered, and the agreement binds the Chinese and prevents the appointment of another man, though if the corporation were to withdraw their acceptance of Mr. Bellingham's appointment and insist on another nomination, the Chinese would probably select a stranger and force the resignation of Mr. Cox, which is not at all to be desired. To make matters more complicated, I have been given plainly to understand by Messrs. Jardine, Matheson, and Co. that it does not suit their interests to continue factious disputes with the Board of Communications, which I can quite believe, and it is possible that they may influence their partners in the British and Chinese Corporation to avoid a direct conflict with Liang Shih-yi.

Mr. Hillier has reported the facts more fully to the corporation, who will probably apply to you soon after the receipt of this despatch. It seems to me that it is for them, who are the trustees for the bondholders, to decide whether the action of Liang is to be opposed or not. For my part I cannot see my way to acquiescence in the matter of Mr. Bellingham's agreement, which, if accepted, will probably lead to other incursions on the control of the engineer-in-chief, and the corporation should, I think, be given to understand that if they acquiesce they do so on their own responsibility.

I have, &c.

Sir,

Inclosure 1 in No. 1.

Mr. Hillier to Liang Shih-yi.

J. N. JORDAN.

July 17, 1909. WITH reference to your Excellency's conversation with me on the 10th instant, on the subject of the separation which you propose to make between the post of engineer-in-chief of the Northern Railways and that of general manager, I have carefully considered the effect of your Excellency's proposal in the light of the loan agreement, and of the protocol signed between Sir Ernest Satow and the administra tors-general of the railway on the 29th April, 1902, and have now to submit to you the following observations:---

1. The functions of the general manager, as defined by the protocol, are "specially to control the works, native and foreign workmen, the inspection of materials," &c. It is obvious from this that the position calls for the appointment of an engineer of high technical qualifications, which Mr. Foley, the nominee proposed by your Excellency, does not possess.

2. The functions of the general manager, regarded as a separate post, overlap and infringe those of the engineer-in-chief as defined in the loan agreement, and it is therefore inadmissible under any circumstances that they should be held by different individuals.

3. On referring to His Britannic Majesty's Legation, I am informed that the intention of the protocol of the 20th April, 1902, was not to create a new post of general manager, but to enlarge the functions of the engineer-in-chief by adding to them those of general manager, an arrangement which had for some time been in practice during Mr. Kinder's occupation of the post, and continued up to the time of his resignation.

In these circumstances, it seems to me inadvisable that the British and Chinese Corporation should alter the terms their acceptance of Mr. Bellingham's appoint- ment, namely, as engineer-in-chief and general manager of the railway, and I have therefore to ask that your Excellency will be so good as to reconsider the matter in At the same time I have to ask that the light of the observations submitted above.

you will be good enough to hasten the decision of this matter as much as possible, as I am led to understand that the present delay in filling the post of engineer-in-chief is affecting the discipline of the staff to an extent which cannot but be prejudicial to the proper administration of the railway.

I have, &c.

E. G. HILLIER.

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Inclosure 2 in No. 1.

Agreement between Liang Shih-yi and Mr. Bellingham.-(Revised by Mr. Hillier, August 23, 1909.)

THIS agreement is made between his Excellency Liang Shih-yi, director-general of railways, hereinafter called the director-general, of the one part, and Augustus William Harvey Bellingham, Esq., M.I.C.E., M.S.E., &c., of the other part, whereby it is mutually agreed as follows:--

1. The director-general engages the services of Mr. Bellingham as engineer-in- chief and general manager of the Imperial Railways of North China, the said appointment having been made in consultation with British and Chinese Corporation in terms of the loan agreement of the 10th October, 1898, and of the protocol dated the 29th April, 1.902.

2. Mr. Bellingham shall faithfully serve the Imperial Chinese Government as engineer-in-chief and general manager of the Imperial Railways of North China, and shall fulfil his duties in that capacity to the best of his ability for the period of three years from the date of this agreement, after which time the agreement shall be terminable by either party on giving six months' notice.

sum of

3. For such service rendered the director-general shall pay Mr. Bellingham the per quarter, paid as it shall become due in Tien-tsin at the rate of exchange of the day, or in London to his credit with the Hong Kong and Shanghae Banking Corporation.

4. In addition thereto Mr. Bellingham shall be entitled to unfurnished quarters equal in every respect to the present quarters occupied by him in Victoria Park, Tien-tsin.

Should it be considered desirable that Mr. Bellingham reside at Tongshan, in the bungalow recently occupied by Mr. Kinder, it shall be cleaned, painted, and colour-washed, and electric light installed.

5. Mr. Bellingham shall be entitled to travelling expenses, medicines, and medical attendance.

6. Mr. Bellingham shall exercise the greatest discretion in the engagement of the employés of the railway, so that only skilled, capable, respectable, and honest men are employed.

7. Mr. Bellingham shall, while giving due regard to the wishes of the director- general, exercise full and sole control over all employés connected with the railway service, and must inspect, and reject if unsuitable, all materials supplied to the railway.

8. All indents for materials from abroad roust first be sent into the director- general for his approval, and no order for their purchase may be forwarded to Europe except under his instructions.

9. No construction or expenditure must take place without proper drawings and estimates being duly submitted to the director-general.

10. Mr. Bellingham shall not be held personally responsible for any delays or losses incurred by defects in management of financial matters, cashier's department, or purchasing agents.

11. Subject always to the duties and responsibilities of the engineer-in-chief and general manager to the bondholders, as implied by the terms of the loan agreement of the 10th October, 1898, and of the protocol of the 29th April, 1902, the said Mr. Bellingham shall not divulge private information regarding the affairs of the railway to any party or parties outside the railway administration.

12. Mr. Bellingham shall devote the whole of his time to the service of the administration, and shall not engage in any other business whatevor.

In witness whereof the contracting parties do hereby subscribe their seal and (or) signature on

Witness to signatures :

[2486 p--2]

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