CO129-383 - Public Offices - 1911 — Page 534

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

CHINA RAILWAYS.

CONFIDENTIAL.

[17271]

No. 1.

0.0

18637 RECO & REGO 16 JUNTT

[May 8.]

SECTION 1.

(No. 169.) Sir,

Sir J. Jordan to Sir Edward Grey-(Received May 8.)

Peking, April 19, 1911. I HAVE the honour to transmit herewith the copy of a despatch from His Majesty's consul-general at Shanghai, enclosing a report by Mr. Handley-Derry, assistant at the consulate-general, on the feasibility of constructing a railway from Lienchou, north of Pakhoi, to Nanning, on the West River.

The line, if constructed, would be of more interest to the French than to ourselves, but, as Mr. Fraser observes, the work would scarcely seem to justify the expense as a commercial enterprise.

I have, &c.

Enclosure in No. 1.

J. N. JORDAN,

Sir,

Consul-General Fraser to Sir J. Jordan,

Shanghai, March 30, 1911. 1 HAVE the honour to forward herewith an interesting report furnished by Mr. Handley-Derry. #

Keports which were being circulated in Pakhoi and in the Chinese and European newspapers led that officer to believe that the scheme as proposed was a feasible one and likely to be undertaken. With a view to deciding the question of feasibility for himself, he travelled over the proposed route, and his report proves fully that the scheme is from a business point of view quite impracticable.

As a political move such a line might be justified; but the financial position of China does not, I submit, admit of the devotion of several millions to a railway which has no other justification, especially white lines that are essential for the development of her resources are either blocked by chauvinistic agitators, or left to the distant future.

The bringing forward of such a scheme for the building of a line, which can never hope to be commercially successful, and which can claim importance only as a political move directed against the French, does little credit to the statesmanship of the Viceroy, Chiang Ming-ch'i.

I have, &c.

E. H. FRASER.

* Not printed.

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