CO129-363 - Public Offices & Others - 1909 — Page 23

[This Document is the Property of His Britannic Majesty's Government.)

CHINA RAILWAYS.

CONFIDENTIAL.

[31855]

No. 1.

35392

IRES

TREGE 5 NOVOY

2%

[August 23.]

SECTION 3.

Sir J. Jordan to Sir Edward Grey,-(Received August 23.)

(No. 137.) (Telegraphic.) P.

RAILWAY negotiations.

Peking, August 23, 1909.

The proposal as to which you consult me in your telegram No. 137 of the 23rd instant, appears to be the consequence of the American Government's determina- tion to insist, as my American colleague assures me they will do, on their right to a half share in the Ichang-Chengtu line as regards chief engineers, supply of material and financing, and also of Mr. Hillier's apprehensions as to the possible attitude of the French bank, which might go so far as to withdraw its adherence to the agreement with the Americans if the French right to appoint the chief engineer for the first half of the line in question were disregarded. It was in order to avoid the deadlock which, he feared, might thus arise that Mr. Hillier suggested our giving up the right to appoint a British chief engincer, as originally arranged, for the last section of the railway.

I do not myself believe that the French would go to the lengths foreseen by Mr. Hillier, and I incline to the opinion that the question as to the degree in which the various groups shall participate in the Ichang-Chengtu section might now be reserved for future consideration, as we have practically secured that the whole railway from Hankow into Szechuan shall not in the future fall solely to the share of the Germans. Should, however, the French group insist, and the Americans refuse to waive their right to appoint the engineer to the first half of the extension, a fairer solution of the problem would seem to be that the last half should be divided into two equal portions to which a British and a French engineer would be appointed respectively.

It is possible that the line now in dispute may never be entirely built with the assistance of foreign capital; and it seems therefore regrettable to delay the ratification of the loan agreement merely because of the differences of opinion which have arisen over the appointments of engineers for the Ichang-Chengtu line.

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