CO129-371 - Public Offices - 1910 — Page 102

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From a telegram received I gather that Mr. R. St. George-Moore's agreement? forwarded in my letter of the 12th May, 1908, has been terminated, but I am assured that this step did not originate here.

I have, &c.

E. H. FRASER.

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

CHINA RAILWAYS,

CONFIDENTIAL,

101

C O

2765

RECE REGE 28 JAN 10.

[January 8

SECTION 1.

Inclosure 2 in No. 1.

Consul-General Fruser to Sir J. Jordan.

[767]

No. 1.

(No. 77.) Sir,

Hankow, December 8, 1909. BEGGING reference to my despatch No. 74 of the 1st instaut, I have the honour to forward translation of the Hupei Railways United Association's application to the provincial council for its support in enforcing the levy of compulsory share con- tributions from the farming and business classes of Hupei.*

The proposed assessment on land represents six times the regular land-tax, but the limit of the charge to those whose tax reaches half-a-tael, implying as this does a holding of seven to teu mou, or an acre to an acre and a-half, relieves the smaller farmers of the burden.

The association is inaccurate in alleging that a business tax already exists; the framers of the document were presumably thinking of Japan.

Five per centum added to the tax on transfers, recently raised to 9 per centum, would check business in real property.

The sting of this document, as reckless as it is cynical, lies in the repetition of the lie that the province is in imminent peril of absorption by alien Powers, a slander even more plainly set forth in a colloquial notice also published in the papers.

The council's debate ou the proposal was inconclusive, and, it is understood, will not be resumed,

The association is now urging the guilds to provide a total in cash or its equivalent of 4,000,000 taels as au essential preliminary to its delegates proceeding to Peking to have the loan negotiations annulled.

The lankow Taot'ai chose this moment for asking me to press British subjects to subscribe for the relief of the distressed people in this province. I have replied that my nationals would require assurance that the native officials, gentry, and merchants had already done their utmost in this direction, and would hardly understand why these gentlemen, who can subscribe large sums for the anti-loan agitation, are forced to ask alien help in relieving their poorer brethren.

I have, &c.

E. H. FRASER,

Sir J. Jordan to Sir Edward Grey.--(Received January 8, 1910.) (No. 432.) Sir,

Peking, November 25, 1909. IN the question asked by Mr. Ginnell in the House of Commons on the 2nd September last, the Shanghae-Nanking Railway would appear to be adduced as an example of a line which His Majesty's Government have forced upon China in a district where no railway is needed and where such an enterprise cannot be made profitable.

In order to refute such a contention, I have the honour to bring to your notice the following facts which I have gathered from the statement furnished by the general manager as to the working of the railway in question during the half-year ended the 30th June last:-

Both the gross and the net earnings have largely exceeded those attained during any half-year up to date. Comparing the period in question with the corresponding six months of the year 1908, it appears that the gross earnings up to the 30th June of this year amount to 916,047 dollars (say 80,0001), an increase of more than 90,000 dollars over the figures for 1908, while the net earnings exceed the estimate by over 30,000 dollars, reaching a figure of 310,355 dollars. A marked reduction has been effected in the cost of working, the total percentage of working expenses to gross earnings being only 66-12 per cent, as against the estimated 68-33 per cent., a result which Mr. Pope considers very satisfactory.

That the railway meets the requirements of the Chinese themselves and is being increasingly appreciated is amply demonstrated by the receipts from passenger traffic. These have increased, when compared with the first half-year of 1908, by over 100,000 dollars, the total amount received under this heading being some 780,000 dollars, and it is interesting to observe that this increase is mainly due to the contributions of the third-class Chinese passengers.

The receipts from the goods traffic also show a satisfactory increase, having realised some 115,000 dollars for the period under consideration.

I may add that the train-miles run during the first half of this year amounted to 402,265.

The above facts show, I think, that the line is in a prosperous condition and is being worked in such a manner as to be an important factor in the development of the district, while, so far as passenger traffic is concerned, the railway bids fair to take its place in future as the premier line in this country.

I have, &c.

• Not printed.

[2581 4-1]

J. N. JORDAN.