CO129-372 - Public Offices - 1910 — Page 357

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I was very careful to explain that I was only empowered to propose to his Excellency a joint building arrangement, and that the details I was giving him originated with me, and were solely intended to explain what might be done in furtherance of such an arrangement.

His Excellency seemed to be very pleased with the idea that the two Govern- ments should have exactly the same amount of interest in the construction and management of the line, although two-thirds of its length would be in Chinese territory against only one-third in Burmah. In this connection, I would respectfully suggest that it is not by any means to our disadvantage to possess a half-interest in a railway of which only one-third runs through British territory.

The Governor-General was very interested in various matters regarding railways, and I was able to give him some information on several points connected with railway undertakings in Europe, such as arrangements for through traffic at frontiers, break of gauge, &c. To convince him that a 2 ft. 6 in. gauge line is not merely a model, I was luckily able to show him a photograph of the opening of the old Shanghai and Woosung Railway in 1876, which was constructed to this gauge; and he could see that the train represented, though small, was quite capable of coping I made it clear to him that the cheapness of with a considerable passenger traffic. the proposed line depended to a considerable extent on this very narrow gauge being adopted, and that the substitution of the metre gauge or the standard gauge of 4 ft. 8 in. would result in the cost of construction being about doubled in the one case or quadrupled in the other.

In concluding this despatch, I would express my regret that I was unable to elicit from his Excellency any definite expression of approval of my proposals and suggestions; but his remarks generally, and the interest which he displayed in the details, showed that they were by no means displeasing to him.

I have, &c.

P. E. O'BRIEN-BUTLER.

C-O 354 C. 21654

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

CHINA RAILWAYS.

CONFIDENTIAL.

(22805]

Sir,

No. 1.

RECR

Ref 15 JUL 10,

[June 25.]

SECTION 1.

Mr. Whitelaw Reid to Sir Edward Grey.—(Received June 25.)

American Embassy, London, June 24, 1910. WITH reference to your note dated the 7th June, which I duly communicated to my Government, I have the honour to inform you that I am now in receipt of telegraphic instructions to the effect that the Government of the United States approves the settlement of the Hukuang loan agreement reached at Paris the 23rd- 24th May.

The American Minister at Peking will be instructed to present to the Wai-wu Pu a formal request in the sense indicated in your note under acknowledgment as soon as the Department of State has been informed that the other Governments also agree to this course.

I have, &c.

WHITELAW REID.

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