CO129-371 - Public Offices - 1910 — Page 171

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already expended, actually or nominally, on the Shanghae-Ningpo Railway would of course have to be replaced by the Chinese Government, and care would have to be taken that the line selected for the employment of the funds was not one already ear- marked for construction by foreign capital, such as the Pukow-Hsinyang or lukuang Railways and their extensions. "But there are other lines in China not so earmarked, and where the inhabitants are likely to be more open to argument and alive to their own interests than the people of Chekiang, which are crying out for capital, and I think everyone would agree that if China showed an honest desire to employ the Shanghae-Ningpo Railway funds for such an object she would deserve encouragement in the attempt. It would both be economically sound and would relieve her from an inextricable and humiliating impasse.

These are only rough ideas, but I set them down for what they are worth in anticipation of a question which we may shortly be called upon to consider seriously.

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

CHINA RAILWAYS.

CONFIDENTIAL.

[1144]

No. 1.

dovernment

3502

[Janualy 9.3 FEB 10,

SECTION 3.

Sir J. Jordan to Sir Edward Grey.~(Received January 11, 1910.)

(No. 478.) Sir,

Peking, December 22, 1909. THE accompanying despatch from His Majesty's consul-general at Hankow* will serve to supplement the information which has previously reached you regarding the agitation against a foreign railway loan which has been going on in the provinces of Hupei and Hunan since the negotiations for an international loan miscarried, and more especially since the death of the Chinese negotiator, his Excellency Chang Chilt- tung. The great emphasis which was placed on the political aspect of Chinese railway loans in the "Times" and other leading organs of the British press has had its effect in China. The vernacular newspapers now quote freely from British publicists to show that the Powers have ulterior designs in seeking to build Chinese railways.

Chiên Kuei-lung, the viceroy to whom Mr. Fraser refers, called upon me yesterday and in the course of conversation admitted that the provinces were totally unable to raise money for railway construction. He seemed to think that the agitation would subside and that the people would in time realise that it would be better to utilise the offer of foreign money than to do without railways.

I have, &c.

* Not printed.

[2581 1-3]

J. N. JORDAN.

לי, -דל -

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