CO129-373 - Public Offices - 1910 — Page 22

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eastern section of the projected trunk line from Ili and Kansu, through Central China, to the Yellow Sea.

The cost of construction is roughly estimated as follows:-

Kaifeng to Hstichow,* 175 miles, 6,700,000 taels; Hsüchow to Tsingkiangpoo, 120 miles, 5,500,000 taels; Tsingkiangpoo to Haichow, 70 miles, 3,000,000 taels; extension to the beach of Haichow and harbour improvements, 2,800,000 taels; making a total of 18,000,000 taels (2,362,5001).

The writer says that, as the Board are averse to raising a foreign loan, and the surplus profits of existing lines are already appropriated, they have recommended that the work of construction be spread over a period of years. He considers that, as the route of the projected railway lies outside the German sphere of interest in Shantung, the latter will not be in a position to advance any serious objections to its construction, although it will undoubtedly have the effect of diverting the traffic from Honan, Shansi, Kansu, and beyond from Tsingtau to Haichow, "thus dispelling the German dream of a greater Tsingtau."

The new port will also, the writer thinks, enter into competition with Shanghai as a distributing centre for foreign goods and an outlet for the export trade of the Yang-tsze. He considers the project "a masterful piece of railway strategy, effectually blocking the German programme in Shantung, nullifying British claims to railway construction in Honan and Kiangsu, and opening a seaport which will be entirely He thinks "the deep significance of the move has been lost under Chinese control.” sight of in the general attention devoted to the Chinchow-Aigun affair."

He As regards the question of a foreign loan for this railway, Mr. Mayers informs me that the Board of Communications are giving the matter their serious attention. has himself discussed details with the Board, who appear, he says, well disposed towards his proposals. He fears, however, that they may give the loan to the Americans as compensation for the loss of the Manchurian loan. Colour is given to this sup- position by a paragraph which appeared in a Japanese paper published at Dalny on the 24th April last, stating that a Sino-American syndicate had agreed to advance 18,000,000 taels for the construction of the Kaifeng-Haichow line.

With respect to the suitability of Haichow as a port, Mr. Wilton reports that the town itself lies on a shallow inlet, and that steamers cannot approach within 10 miles of the shore. At Chingkow, however, a few miles north of Haichow, the anchorage is better. There appears to be a large junk traffic at Haichow, the native customs returns for 1908 giving an entry of 2,433 vessels and a clearance of 2,001 during the

I have, &c.

year.

W. G. MAX MÜLLER.

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

CHINA RAILWAYS.

CONFIDENTIAL.

[27601]

No. 1.

Foreign Office to Messrs. Puuling and Co.

CO 27913

[August 16.]

RECE SECTION 18 SEP 10

Sir,

I AM directed by Secretary Sir E. Grey to acknowledge the receipt of your

Foreign Office, August 16, 1910, letter of the 29th ultimo, in which you enquire whether His Majesty's Government will lend their support to the construction of a railway from Chenchow to Taonanfu; this construction to supersedo--for at any rate some years-the original proposal for the construction of a line from Chenchow to Aigun.

In reply, I am to observe that it is evident that a line between the places you mention would avowedly be constructed with a view to its extension northwards later on, and it appears to Sir E. Grey in the circumstances that the Russian and Japanese Governments are likely to consider themselves entitled to be consulted in regard to the project in the same way as they claimed to be consulted over the Chenchow-Aigua scheme. He does not therefore consider it possible, in view of all that has passed in the matter of the Chenchow-Aigun project, to afford support in the present case unless regard were also taken of Russian and Japanese interests in the regions to which the prolongation would extend.

I am further to point out that, as regards the former, His Majesty's Government have to consider how far this point of the engagement with the Russian Government of 1899, by which they are bound not to support concessions for railways in China north of the Great Wall, may preclude them from taking an active part in promoting this enterprise if it is opposed by the Russiau Government.

[2875 q-1]

I um, &c.

W. LANGLEY.

This was the line which was offered to the British and Chinese Corporation in December 1909 in exchange for the Shanghai-Hangchow-Ningpo Concession.

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