CO129-520-6 Railway development- Canton-Kowloon Railway 5-11-1929 - 5-11-1930_Part_002





occurred in Haiti and Liberia. Active illustration of China's ability to conduct her own affairs in an orderly manner is the best answer returnable in the circum- stances, but can this answer be given while every rob- bery and minor misdemeanour is magnified and garbled in their own interests by commercial agencies? Another favourite argument of those opposed to Chinese autonomy is that as China's civilisation is based upon the precepts of Confucius, who lived half a century before Christ, her present condition is similar to her con- dition at that time. People who are according to our standards, 3,500 years behind the times (they contend) cannot obviously be entrusted with the task of adminis- tering the affairs of a vast country in an up-to-date manner. This is a subtle argument because those who make it realise that, apart from the unacceptable anti- quity involved in their contention, Confucius is com- monly thought to have believed in and taught the in- ability of progress, preferring to create a stable society without working consistently for further success. The truth is that Confucius did not think the human race naturally progressive. He believed in rulers being wise and ambitious in the interests of their subjects. And as regards the cavil that China is still where Con- fucius left it, we have only to look at the almost in- calculably great and far-reaching consequences which have followed as the result of his teaching. His life was one of the greatest and most progressive ever lived by man, Three others only are comparable with it in world history: Guatama's sojourn among men the career of the Arab Prophet, and the "Sinless Years" which, we are told, closed on Golgoth. Contributors of special articles to The China Critic are hereby requested to inform us of their professional connections when they send in their manuscripts. Phthisis is usually the result of a common cold, which weakens the delicate lung tissues and thus enables tuberculosis-germs to settle and spread. Take Guaiacose It strengthens the entire organism and makes it more resistant to infections. By de- stroying the germs causing it, the initial stage of tuberculosis can be successfully FACTS & FIGURES MINISTER T. V. SOONG'S FINANCIAL STATEMENT For the 17th Fiscal Year July, 1928 to June, 1929. (A) Revenue: 1. Customs duties Receipts J.-Rolled Tobacco and Kerosene 4.--Tax collected by provinces 5.-Tobacco and 6.-Stampe 7. Flour 8. Parcel Post 9.--Mining Tax TI. Miscellaneous Revenue: 1.--Examination of deeds 2.-Fines Sale of confiscated properly 4. Registration fees III. Unclassified Revenue: 1. National revenue collected by pro- vinces and directly disbursed for military expenses 2.-Miscellaneous (B) Refunds: Return of Russian Indemnity II. Refunds of expenses and advances (C) Bonds, Treasury Notes and Loane: Treasury Notes III. Loans Overdrafts $179,141,017.18 29,542,421.46 27,691,387.60 14,643,819.28 3,549,880,41 3,054,842.06 2,087,921.71 923,078.53 Cosmetics Medicine Uthers Total Percentage Sub-Division Cotton Spinning Cotton Weaving Silk Reeling 1-Textile Industries Proprietorship Partnership Corporation Total 8,480,000 +28,750,000 $87,280,000 $1,820,000 Silk Weaving Wool Spinning *152,350,800 *152,350,800 287,900 1,840,650 2,243,650 $74,000 +2,425,900 675,000 1.279.000 Knitting 7683,000 +1,825,600 *250,000 *250,000 Percentage 11,713,600 185,054,400 197,443,900 2-Chemical Industries 13,500 1478,000 +$11.500 *375,000 *303,000 Soap and Candles 512,400 888,800 $1,000,000 $1,132,480 90,182.19 ~940,000 *943,000 $260,554,396.27 1211,000 *640,300 1,860,019.88 40.899.80 14.660.88 3,130.00 1,927,000 1,910,700 Bleaching and dyeing Enamelled 1,918,710.56 Percentage 11,000 274,300 16,000 897,780 160,800 8,199,600 97.50 187,800 9,871,580 100,00 62,881,587.86 7,624,846.16 3-Printing 70.006,444.02 $332,479,550.85 Printing 1427,200 $1,699,026.26 117,890.71 Percentage 625,200 5.65 19,404,700 *676,000 $54,791 10,014,491 90.44 710,457,300 -581,000 $74,791 11,012,891 1,816,916.97 4-Machine Industries 44,506,129.01 Machine Foundry 1,766,450 24,048,471.98 28.077.995.45 8,611,648.66 Grand total Disbursements 100,144,245.10 3434,440,712.92 Electric Machinery Shipbuilding Total Percentage 757.200 $1.01 1,212,400 49.65 38,000 2,444,450 5-Foodstuff Manufacturing Keirigeration 50,600 6,000 $ 4,040,000.00 $80,000 5.466,500 5,236,500 Rice-hulling †416,600 †962,100 *361,100 -861,100 194,300 17,074,860 $17,890,110 $10,000,000.00 *23,350,000 *28,850,000 464,300.00 Sauce, etc. 4.--Judicial Yuan and Subsidiary $ 7,000,000.00 5. Examination Ypan and sidiary Organs 1,890,000.00 6.- Supervisory Yuan and Subsidiary 504,318,71 248,000.00 448,429.50 *111,100 *113,100 Percentage 822,760 1,518,000 47,874,220 25,600 49,715,020 100.00 28,088,394.62 6-Tools, Apparatus and Furniture III. Military Establishments: 2. Disbursed directly by Provinces.. 62,881,597.86 Scientific apparatus Hattan and bamboo ware Metallic ware †50,000 +616,560 209,5$6,969.49 •125,000 IV. Other Disbursementa: 8,627,936.96 2. Miscellaneous subvention 1,081,104,60 Musical instruments & toys 45,000 Others Total *125,000 196,000 +149,800 Fercentage 275,050 24.62 1,117,000 6.925.472.06 $247,690,896.17 121,818,007.57 88,668,189.79 20,000,000.00 6,768,697.39 7-Articles of Daily Use Umbrellas Brushes +147,000 *700,000 *700,000 Stationery Clothing $434,440.712.92 Percentage 1,028,900 38.11 1,162,100 8 Other Industries Building material 1,460,000 1,532,000 Paper Cartons 197,300 26.300 Electric power & water +8,980,000 +8,980,000 *10,000,000 *10,000,000 Cotton Ginning Others Total 125,460 0.59 150,160 31,700 18,000 46,000 248,600 20,584,500 20,958,460 100.00 2,806,410 16.127,680 274,848,411 293.282,401 ** Foreign Capital) (*†(Church) 辦理銀行一切業務 兼收各種儲蓄存款 天津 北平 上海 漢口 * * Kincheng Banking Corporation Authorised Capital Paid-Up Capital I. Party Expenses (A) Current Purposes: IL. Civil Establishments: 1.-State Council and Subsidiary Organs $4,098,791.51 2.-Executive Yuan & Subsidiary Organe 22,327,554.90 3-Legislative Yuan and Subsidiary 1.-Disbursed by Central Government.. 147,155,371.68 1. Subvention to provinces 3. Refunds of taxes and deposita, 4. Miscellaneous Debt Service Indemnity (D) Advances for Capital of Central Bank Suspense $10,000,000.00 $ 7,000,000.00 $ 1,890,000.00 Every Branch of Banking Business Transacted Saving Deposits Received Head Office: Tientsin. Branches: Peiping, Shanghai, Hankow, and Dairen. Grand total 703,946.43 612.484.17 CAPITALIZATION OF SHANGHAI INDUSTRIES The Chinese Government Bureau of Social Affairs of the Shanghai Municipality has compiled statistics of in- dustrial establishments in the Municipality, including the foreign settlements. There are altogether 1781 Chinese and foreign factories in this city, but only 1,500 filled in the schedules of the Bureau. The following table shows the capital figures of these 1,500 factories classified according to the nature of the industry as well as to the type of organization. This is the first comprehensive statistica ever collected and compiled on this subject. Spectacles Others Total Coal Bails Percentage Grand Total (Chinese Capital) THE CHINA CRITIC March 13, 1930 March 13, 1930 THE CHINA CRITIC CHIEF EVENTS March 2-8 GOVERNMENT Dark War Clouds Passing The dark war clouds in the North, which have caused nation-wide concern and anxiety, are now passing away, and a feeling of ease is perceptible among the general public as a result of the announcement that Gen. Yen Hsi-shan is determined to go abroad together with Marshal Feng Yu-hsiang. In his telegram of March 5, he de- clares that he has always stood for peace and unification and that his recent the suggestions to Government were made with a view to preventing fur- ther internal strife. "Since, however, my proposals have not even been con- sidered," Yen declared, "I shall certain- ly not be the cause for any civil strife. am, therefore, immediately going abroad with Huankung (Feng Yu- hsiang) in order to carry out my original intentions", It is understood that Gen. Yen will leave for Japan, probably alone, as Feng Yu-hsiang has not yet made any pre- paration for leaving. Mr. Chao Tai-wen, in his wire to the Government, is com- ing to the capital to make final arrange- ment with the Government for Yen's departure. The Shansi troops in Chengchow, Ho- nan, under Gen. Sun Tso, evacuated on March 4 and the garrison duties of that city is now being performed by Gen. Shih Yiu-shan according to the Govern- ment order. Tsaochow, which was also occupied by the Shansi troops in Western Shantung, has been deserted, and these Shansi troops have returned to their original post at Taming. The advanced forces of Gen. Fu Tso-yi, which occupied Tehchow, an important city in northern Shantung, are preparing to leave for Shansi shortly, on account of the sudden change of political de- velopment. The reasons for Yen's sudden change of policy to fight the Government seem to be due to the fact that Gen. Chen Tiao-yuan, Governor of Shantung, and Gen. Ho Chien, Governor of Hunan, have remained loyal to the Central Govern- ment. With Marshal Chang Hsueh-liang neutral and Gen. Shih Yiu-shan and Gen. Han Fu-chu again gone over to the Central Government, Gen. Yen Hsi-shan has been left without sufficient allies to oppose Gen. Chiang Kai-shek. Apparently Gen. Yen hoped that a chorus of disapprobation of Gen. Chiang Kai-shek would arise following Yen's denunciation of the Generalissimo, think- ing that this would be sufficient to in- duce Gen. Chiang resign without fighting; but as the Generalissimo is determined to remain in office, the Shansi general will not fight in an attempt to compel him to go, Well-informed circles state that A Lotal of ten million dollars ($10,000,000) have so far been spent by General Yen Hsi-shan for military preparations against the Government. But the re- fusal of the Kuominelun and other military units in Honan to act accord- ing to his instructions have brought about the collapse of his scheme. 3RD PLENARY SESSION OF C. E. C. ENDED The third Plenary Session of the C.E.C. came to a conclusion after a five- day discussion. In a manifesto issued to the nation, it stresses the need of District Autonomy, Economic Recon- struction and the spread of Education based upon the Three People's Prin- ciples. In the 2nd general meeting, nine re- solutions were passed, two dealing with party affairs; two on the Reconstruc- tion Program of the National Govern- ment; three on the civil administration of the Government with special reference to the question of the selection of Dis- trict Magistrates, Bandit-Suppression and the Program of Economy of the Government; one concerning the appoint- ment of additional members of the various committees of the C. E. C., and the last concerning the Shansi Provin- cial Currency Rehabilitation Loan of twenty-four million dollars ($24,000,- 000). The order for the latter loan was cancelled. The employment of the disbanded soldiers and officers was also discussed. It was proposed that the soldiers be absorbed in the various reclamation, colonization and reconstruction works. However for the employment officers, the following scheme is recommended: (1) To establish a Police Training Institute for the training of those dis- banded officers who aspire to be police officers and who, upon completion of their training, can be dispatched to various districts throughout the country to organize and improve the police sys- tem. (2) To train a number of disbanded officers to serve as military gendarmes whose specific responsibility will be to onforce discipline in the National Army. (3) To establish in each province a Surveying Institute where suitable dis- banded officers can be assigned to study the surveying of land and public roads. Upon conclusion of their training, they will be assigned to various Reconstruc- tion departments of the Government to assist in carrying out the program of National Reconstruction. (4) To open a Civil Engineering In- stitute for the training of suitable dis- banded officers who be employe upon completion of their special train ing, in the various railroad and public as superinten- highway constructions dents. disbanded train suitable (5) To officers as agricultural experts. (6) To train the disbanded officers for special service in connection with land reclamation along the border districts of the country. CHINA'S FINANCIAL STATEMENT Mr. T. V. Soong, Minister of Finance, presented an annual report on the finan- ces of the National Government to- gether with a financial statement to the Third Plenary Session of the Central The Executive Committee. total re- ceipts were $434,440,712, of which by far the greatest contribution came from Customs duties. However, half of this amount went to military establishment, the exact figure being $209,536,969. The present situation is much improved than that prevailing during 1928, when only Kiangsu and Chekiang were bearing the heavy financial burden. Now the Cus- toms revenue is centralized, with only about ten provinces still controlling their financial revenues. KWEILIN CAPTURED Kweilin, an important city in northern Kwangsi, was captured by the Hunan Government troops. As a result of this defeat on the part of the Kwangsi re- bels headed by Pei Tsung-hsi, a general retreat was ordered. No longer able effectively to resist the onslaught of the Government forces, the rebellious "Ironsides" leader, Chang Fa-kuei, sent two personal representa- tives on March 2 to implore General Chen Chi Tang to stop the advance of the Government forces, General Chen has telegraphed to Nanking for instruc- tion in regard to the matter. INTERNATIONAL RELATIONS LEAGUE'S OPIUM COMMISSION The League of Nations Commission of Inquiry into Opium Smoking in the Far East arrived in Shanghai on Thurs- day, March 6, in the str. Chosa Maru from Formosa. The Commission is com- posed of M. Max Leo Gerard, Dr. Ian Haviase, and Mr. Bertil A. Renborg. The commission is merely passing through Shanghai on its way to Dairen, as it has not been invited by China to come on account of League's refusal to include the investigation of Morphia, Morphine and other drugs in its in- vestigation. THE LEAGUE'S HEALTH COMMISSION The Health Committee of the League Nations examined the proposals made by the Chinese Government, which asks for the help of the League in the way of technical advice in regard to rtain sanitary works that are com- prised in the reconstruction and modernization of China, especially, the reorganization of the quarantine service by the Ministry of Health. Among the other measures proposed are the immediate establishment of a national hospital in Chekiang, which will serve as a model to the other pro- vinces of China; and the reorganization of medical training. The Chinese Government also asks for the collaboration of the Epidemiological Office at Singapore with the Ministry of Health for fighting small-pox and chotera. The Chinese Government has already entered into obligations involving a sum of M.$200,000 in respect of fulfilment of its plan which, it is estimated, will cost M.$1,000,000. Miyajima considered the most important question, from an in- ternational point of view, was the or- ganization of quarantine service in China. AMERICAN MINISTER VISITING Mr. Nelson T. Johnson, American Min- ister to China, visited Nanking and was entertained by Dr. C. T. Wang, Minister Sun Fo and other officials. While in Shanghai, he received a most hearty welcome from the American community. AIR CONTRACT REVISION The contract signed between the Chinese Government and the China Air- ways Inc., an American company, which has been seriously protested against by the Chinese, is now being revised at Nanking. MIXED COURT IN FRENCH CONCESSION The Judicial Yuan and the Ministry of Foreign Affairs received on March 2 identic telegrams from the Shanghai Bar Association suggesting reorganiza- tion of the Mixed Court in the French Concession at Shanghai along the same lines as that of the Shanghai Provisional Court. It is pointed out that although several minor changes in the adminis- tration of the Mixed Court of the French Concession have been voluntarily introduced by the French Consular Authorities, the Court remains to all intents and purposes under the control of the French Concession Authorities and is altogether inconsistant with the Chinese judicial system. Responsible Judicial authorities are formulating de- tailed procedure governing the rendition and reorganization of the Court which will be the basis of discussion during the negotiations, SINO-GREEK TREATY RATIFIED According to a cable to the Ministry of Foreign Affairs from Minister Kao Lu at Paris, the new Sino-Greek Treaty has been duly ratified by the Greek Parliament, ROYAL VISITOR At the request of the Ministry of Foreign Affairs, the Ministry of the Navy has dispatched the gunboat "Hai- yung" to Shanghai to welcome the Danish Crown Prince. Preparations are now under the auspices of the Ministry of Foreign Affairs to extend an ap propriate welcome to Prince Frederick on his arrival at the Capital. JAPANESE SOLDIERS IN KIRIN Under the pretext of suppressing the independence movement of Korea, a de- tachment of Japanese troops, numbering over one thousand men, recently arrived at Chungchun route to Lungchin, near the Kirin-Korea border. Strong resentment is expressed by the public at the illegal arrest of Kor- eans by Japanese soldiers in Kirin without the concurrence of the local Chinese Authorities. Two Koreans are reported to have been executed by the Japanese military authorities in Lung- chin for alleged complicity in the In- dependence movement. PERMIT NECESSARY FOR ARMS IMPORTATION The Ministry of Foreign Affairs, in identic communications dispatched to the foreign Legations, declares that hereafter all shipments of arms and munitions from abroad will not be per- mitted into the country without the necessary permit issued by the National Government. Any foreign national con- travening the order of the Government will be severely dealt with, This action is taken in consequence of the receipt of reports that certain foreign nationals have been secretly importing arms and other implements of war for, the counter Revolutionary elements. CHINESE CREW ON FOREIGN VESSELS According to a cable from Geneva, the Governing Body of the International Labour Office is notifying member-states of the Chinese proposal adopted at the 13th International Labour Conference providing that Chinese crew on foreign vessels shall be amenable to Chinese jurisdiction when within Chinese ter- ritorial waters. TRADE & CONSTRUCTION CENTRAL BANK OF CHINA'S 46TH EXAMINATION OF RESERVES In accordance with Article 15 of the Charter of the Central Bank of China, the Supervisory Committee is invested with the duty to examine the Reserves held against Note-Issue. The Committed has on the 28th day of February, 1930 held its forty-sixth examination at the Issue Department of the Bank, the result is as follows: Total amount of notes in circulation: Dollar Notes Subsidiary Coin Notes 12. .$12.484.888.00 1,365,500,00 $13,850,888.01 Reserves against notes in circulation: Cash Reserve $9,007,883.24 (of the above sum $5,284,574.82 is in Shanghai the Office, balance $1,162,085.14 is kept in Branches and Sub-branches $2,610, 778.24 is kept in Local Banka). Securities Reserve 4,843,004.80 $18,850.388.00 According to Article 2 of the Bank's rezulation governing note issue, the Bank is required to keep Cash Reserve @ 60% and Securities Reserve @ 40% of the total issue. Finding the Cash Reserve to exceed 60% and the Securities Re- serve not over 40%, we hereby certify that the reserves against notes in cir- culation is in order. Signed by Messrs. Li Ming, Chairmen of the Committee; C. L. Wang, Tsuyee Pei, Z. C. Zing, Yu Ya-ching, K. H. Lin and C. M. Shu, Supervisors. OPIUM SUPPRESSION MEASURES For the effective prevention of opium smuggling into China, all vehicles, vessels and aeroplanes entering or pass- limits of ing through the territorial China, whether on land, upon water or in the air shall be subject to search by the responsible local opium-suppression authorities and the bureaux of public safety. This decision was reached at a joint meeting on March 6 of the various Ministries concerned and the Central It was Opium-Suppression Committee. also decided to make it incumbent upon all communication organs, civic organiza- tions and the revenue bureaux through- out the country to render all necessary assistance in the matter of enforcing the search. A recent communication from the Secretariat of the League of Nations at Geneva received at the Ministry of For- eign Affairs states that the following measures for the prevention of opium smuggling were adopted at the 10th. In- ternational Opium-Conference: 1. Customs Authorities should con- duct a search of all suspicious looking packages. YELLOW TAXI IS WARMER THE CHINA CRITIC March 13, 1930 March 13, 1930 THE CHINA CRITIC Search of all Post Office boxes. of facilitating the As a means search, all mails destined for the Far East should be handled by specially de- signated Post Offices. The Ministry is understood to have forwarded the above communication to the Opium Suppression Committee for reference. EXPORT RAW SILK TO BE TESTED It is announced at the Ministry of Industry, Commerce and Labor that be- ginning from March 1, all shipments of raw silk destined for exportation abroad will be subject to examination by the Testing Bureau of the Ministry at Shanghai before such shipments may be exported. The purpose of the examina- tion is to ensure that only raw silk of the requisite standards shall be shipped abroad so as to enhance the quality of Chinese products in foreign countries. GOVERNMENT RADIO ADMINISTRATION According to a spokesman of the Min- istry of Communications, formal notifica- tion of the termination of the Govern- ment's contracts with the Great Eastern and Great Northern Telegraph Com- panies at the end of the current year have been dispatched to the Companies concerned. With the Government Radio Adminis- tvation now in direct contact with Man- ila and in view of the early completion of the construction of the powerful radio stations near Shanghai for direct com- munication with Europe and America, it is believed that satisfactory arrange- ments will be made for all messages abroad to be transmitted direct through the Government's radio stations. GOVERNMENT RAILWAYS: REVENUE & EXPENDITURE According to a statistical report re- cently compiled by the Ministry of Rail- ways, the total revenue and expenditure for 1915, 1916, 1917 and 1918 of thir teen Government Railways, namely, Pei- ping Nanking, Liaoning. Shanghai - Shanghai Hangchow, Peiping-Suiyuan, Taiyuan-Shihehiachwang, Taokow-Ching- hua, Lung-Hai, Kirin-Changchun, Can- ton-Kowloon, Hunan-Hupeh, Sipingchi- Taonan, Kiaochow-Tsinan and Nan- chang-Kiukiang Lines, are as follows:- Total revenue expenditure $111,110,613 $47,990,511 75,892,621 50,621,403 76,292,582 51,405,365 62,445,686 41,256,072 MODERN PAPER MILL Wenchow is greatly interested at the prospect of having the country's first modern paper mill in the immediate future. Preparations for the construc- tion of the mill have been under way for some time. It is stated that over half of the authorized capital of $3,000,- 000 has been obtained through subscrip- tion to the stocks of the proposed com. pany, which is headed by a powerful group of Shanghai newspaper magnates. According to technical experts who have been investigating the district around Wenchow, the pine forests will make excellent pulp for the paper making in- dustry. RAIL COMMUNICATIONS It is announced by the Tientsin-Pukow Railway Administration that beginning from March 3 all up-trains on the Line will proceed as far Tsinanfu only, while down-trains will leave Tsinan for Pukow once a week. Down-trains from Tientsin only proceed as far as Lienchin, one station north of Tehchow, on the Shantung-Hopei border. TONNAGE OF VESSELS & IMPORTS REQUIRED In a circular ministerial order issued on Mar, 2 to all Superintendents and Commissioners of Customs throughout the country, the Ministry of Finance in- structs that full reports on the total tonnage of foreign vessels engaged in the export or import trade during the year 1929, as well as the total tonnage and quantity of all foreign imports during the year should be immediately submitted to the Ministry. YUNGTING RIVER BRIDGE COLLAPSES Two bridges of the Yungting River suddenly collapsed on Mar. 4 and 8 resulting in the destruction of over 400 feet of the embankment. The Conservancy Bureau has rushed a number of workmen to effect immediate repairs. The necessity for reinforcing different parts of the embankment is keenly felt by the Hopei Provincial Authorities and for a petition appropriation of $1,000,000, to be remitted by the Chang- lu Salt Inspectorate, for effecting re- pairs has been submitted to the Central Government. COAL MINES Preparations for the opening of the coal mines at the Hualyuan District, west of Pengpu in Northern Anhwei, having been completed, it is announced by the National Reconstruction Com- mission that work will be commenced on the 15th inst. It is expected that the preliminary excavations will require one year to complete following which, it is estimat- el, a daily output of 300 tons will be obtained. To facilitate transportation of the coal, extensions of the Tientsin- Pukow Railway from Pengpu and Huai- ho to the mining area will be construct- ed. The Commission is also planning to construct a road directly connecting Hofei with the Yangtze River. PRESS COMMENTS M. TARDIEU'S CABINET IN FRANCE The China Times: On the 17th ultimo, M. Tardieu's Cabinet was de- feated by a division of votes on the Bill. decreasing the income tax payable by married women, the Chamber's votes showing 281 for and 286 against the Bill. M. Chautemps, leader of the Soci- al-Radical Party, succeeded in forming a cabinet. But the Chamber threw his government out by easting only 277 votes in favor of his declaration of policy and 292 votes opposed to it; and since M. Chautemps made this a ques- tion of confidence, his Cabinet had to resign en bloc. Whereupon, M. Tardieu resumed his premiership on the second instant. M. Chautemps' Cabinet lasted five days only, a rare phenomenon in the annals of parliamentary government of the world; not even in the history of France has there ever been a cabinet as short-lived as that of M. Chantemps'. It is a well-known fact that the French Cabinet has been changed scores of times since 1870 when the Republic was reestablished for the third time. The chief reason why a French Cabinet can- not be maintained for long is because of the multicipility of political parties, coupled with the divergence of views held even between members of the same party in and out of the Parliament. This explains why it had hitherto been impossible for any French cabinet to control its own party or to make advantageous use of the support of the majority party. Cabinet Ministers had to resign on any occasion when more votes were cast opposing any govern- ment proposal or bill than those in support of it. No Cabinet could, there- fore, be sure of the duration of its tenure of office. At the beginning of the twentieth century, as a result of her political lassitude, the national affairs of France were in a state of chaotic confusion. M. Georges E. Clemenceau, popularly nick- named the "Tiger", became the Prime Minister. By virtue of his dominating spirit, he had the French Parliament completely at his command; and his Cabinet lasted as long as two years and nine months. And in 1926 when France was threatened with financial bank- ruptcy, M. Raymond Poincare was call- ed upon to assume the premiership; and his Cabinet, having secured public support by a pledge to rehabilitate French finances and stabilize the price of the franc, was enabled to eke out a life of over two years. These two instances of durable cabinet were exceptions rather than the rule, as th were favored by the circumstances and tendencies of their times. Although the French political parties lack the stamina to support the Cabinet, yet they appear potent enough to sound its death knell. The Cabinet of M. Chautemps had the full support of its own party and the Leftists, but the Right and Central parties would rather prefer M. Tardieu, as proved by the ringing cheers they raised in favor of M. Tardieu upon the defeat of the Chautemps Cabinet, although the Left- ists answered by their vociferous cry of "vive le M. Chautemps." From this, we may safely say that the Leftists and their adherents entertain no pleasant feelings towards the Tardieu Cabinet. (A short record of M. Tardieu's past deeds and achievements is given in the concluding portion of this article.) (March 7.) CONSERVANCY WORK OF THE YUNGTING RIVER The Sinwanpao: The North appears to be again afflicted with flood, especial- ly threatening has been the aspect of the Yungtingho. For the present, pre- ventive measures must be urgently taken. But no fund is available owing to lack of a clear understanding as to responsibility between local authorities and the Central Government. How dangerous such a situation is! The rise and fall of rivers and streams in the North have never been regular. At low water, a river can be forded on foot. But suddenly a flood the would appear, inundating whole countryside around, and converting it into a vast lake. If preventive men- sures were inadequately taken, and the embankment of a river was burst open. the region situated even as far as several thousand li away might often become a mass of water. The breach of a rivér embankment, however small, must not, therefore, be lightly regarded. The delineation of responsibility be- tween the central and local governments is a matter that should have our atten- tion in peaceful times. Upon an emergency, all other considerations should be disregarded, in order to tackle the problem confronting the nation as speedily possible. With flood stretching beyond the horizon, involving the lives of hundreds of thousand or millions of our people, what a danger- ous spectacle this is. Could we be so callous as to be able to discuss the niceties of ethics calmly and leisurely under such distressing circumstances? In all forner dynasties, river con- servancy was invariably regarded as a very important branch of work under- taken by the government. The local officials were held absolutely responsible for keeping the river flood in harness, and it was their bounden duty to look after all repairing and constructional works at ordinary times. Special com- missioners were appointed to superint- end such works in connection with im- portant rivers. These officials were considered to have done their duty well only after having successfully passed the three periods of high water in a year without encountering any mishap. Now-a-days, official lassitude seems to be the order of the day in respect of river conservancy. When any danger is approaching, they are still wasting valuable time by a quarrel as to who should really be the responsible party to "bear the baby". The local officials should at least be charged with trifling with the lives of our people. (March 7.) RESULT OF THE NAVAL CONFERENCE The Shunpao: According to preced- ing cases, no satisfactory result could possibly be expected from the Naval Disarmament Conference now being held in London. In spite of the earnest and utmost exertion on the part of certain individuals, the human mind is full of doubts and suspicions which can never be wholly dissipated in all circum- stances. Not to mention the designs of ambitious persons in this world, the simple desire not to suspect others is as difficult to materialize as our aim not to be subject to the suspicion of others. Before the outbreak of the European War, the Powers vied with each other in their endeavor to maintain peace by their "military preparedness," in the belief that in view of their military strength, no оле Power would have dared to start hostilities, and that peace could have thus been preserved. But the Great War was the result of this very military preparedness. After the war, the wise men in all countries have unanimously condemned the policy of "armed peace", having learnt the painful truth that war has never been and will never be profitable. The disarmament proposal was, there- fore, broached immediately upon the conclusion of the European War. A]- though this proposal is still being acted upon today. little has SA far been achieved, judging by the result of several international conferences on this question of disarmament. The chief obstacle which may easily wreck the Naval Conference today is the pretext of "self defence" advanced by most Powers. What may the stand- ard strength considered sufficient for the purpose of self defence be? This question depends, of course, on the re- quirements of different Powers in whose countries conditions widely differ. Hence, a unanimity of opinion is out of the question. No fixed standard of disarmament can he agreed to. The vain effort to seek a solution by the ratio of proportion, even if successful, would not prove effective in the pre- vention of war by the restriction of all kinds of armament. Should the Powers of the world sincerely desire to attain the object of disarmament, they should each try to be the first to reduce their armament to the minimum strength in order to set up a model for the world to copy, irrespective of what the other countries might or might not do. This would be a much more effective way towards universal disarmament than the hold- ing of futile conferences, (March 7.) QUARANTINE SERVICE IN CHINA The Sinwanpao: The Health Corn- mittee of of the League Nations discussed the proposals made by China the other day. Measures to be under- taken in China by herself, we shall pass over for the present. Our atten- tion should be paid to those questions that require international collaboration, such as, the reorganization of the quar- antine service and the collaboration of the Epidemiological Office at Singa.. pore with Ministry of Health for fighting small-pox and cholera, both proposed by OCT Government. Japanese Delegate voluntarily gave his assurance that the Japanese medical world would gladly collaborate with us, through the intermediary of the League. In international affairs, col- laboration is certainly necessary. But collaboration should be confined within a certain scope, and preparations on our part should be made in advance. One thing we must guard against, and that is, we should take care not to drift into the reprehensible habit of relying too much on others. In sounding this warning, we are influenced by the lamentable lack of talented men in all branches of work in this country. Moreover, we find that public works undertakings have usually been carried out in a slipshod way. We feel some apprehension that in matters of international cooperation, our countrymen might conceivably find their position untenable and might decide to give way and shirk respon- sibility, unon discovery of their inferior- ity in everything inaugurated or done. It is owing to this reason that we urge upon our people the necessity of pre- paring themselves beforehand, should China's proposals be adopted. We would point out another drawback in the characteristics of our peorle. In the introduction of anything or any movement affecting public welfare in this country, ill-feeling or reactionary feding has often been aroused. This is because of the backwardness of our social progress, and, sometimes, of the lack of an earnest interest displayed by the men engaged in the work or under- taking. (March 8) THE CHINA March 13, 1930 March 13, 1930 THE CHINA CRITIC BOOK REVIEW Edited by Quentin Pan AND POPULATION PROB- LEMS. By H. G. Duncan. XV and 424 pp. New York: Longmans, Green and Co. 1929. quantitative This book forms one of the Long- mans' Social Science Series under the general editorship of Professor Ernest R. Groves. It is designed as a general introduction to population problems, both in their qualitative and aspects. As a textbook it differs from others in that it contains a great many quotations and citations from various au- thorities in the field, as the author has tried to make it serve at the same time as a book of readings. We see here the last stage of the process of the simplica- tion of supplementary reading ma- terials, for which the average Amer- ican college student cannot but feel thankful. Knowledge is nowadays ob- tainable in increasingly handy and digestible doses. Let up hope there is in appreciable loss flavor and piquancy which goes with original and deliberate search. The text is in two books, the first hav- ing to do with the problem of races, and the second with the problem of numbers. While on the whole the au- thor presents a quite balanced panoramic view of the whole field of population problems, the second book appears to be much better written. One of the rea- sons for this is that the qualitative prob- lem has been approached in recent years from many more angles than the quantitative, and there is much less agreement as to some of its major issues. As one of the weaknesses we may mention our author's failure to dis- tinguish between race as "stirps" which involves valulation and race as a taxo- monical term which is merely descriptive. The failure is quite common, it is also found in Professor Hankin's Racial Basis of Civilization, but is quite serious as it tends strongly to becloud the issues involved. The racialist eugenist owes the untenability of his position almost entirely to his inability to make this distinction. A better outline of the volume would be Book I, The Problem of Races, Book II. The Problem of Quality, and Book III, The Problem of Numbers. Another weakness appears to be our author's inability to be really impartial between rival schools any two of thought. This weakness is of course well-nigh universal. While the author "has striven to refrain from injecting his own conclusions," his inclination to- wards some particular viewpoint or school of thought is often quite obvious from the way he sifts his reference ma- terials and the varying emphasis which he puts upon them, usually through the use of italics. Our author starts one of the chapters saying, "We have no intention of minimizing the importance of the social environment, but it is well to remember........." But he concludes the same chapter with a passage from Jennings, the very last sentence of which he has taken pains to italicise: "And the way they (the hereditary units call- ed genes) interact and what they pro- duce depends on the conditions." SJ our author appears to be at heart an environmentalist. Similarly he appears to be a racial egalitarian, and tend to minimize racial differences. While he speaks disdainfully of the racialists, he himself has not hesitated to refer to the Mexican as "a more slothful and less progressive group" than the Americans, the Chinese as "non-assuming," and the Japanese as "efficient," nor has he been słow in Smith's adopting Professor Tentative Scheme of the Relationships of the Different Genera, Species, and Races of the Human Family, which makes the Nordic Race the latest de- velopment of the trunk and all other races earlier developed branches from the trunk. respectable That in the discussion of monogenism versus polygenism and of the produc tion of genius, Crookshank and Redfield should have occupied as places as most other authorities, and this in an introductory textbook, is a big surprise to us, We also wonder why in the discussion of mental differences between races, Profesor Porteus' contri- butions which are based upon quantita- tive measurements and upon a method of testing which obviated the use of language, are not even alluded to. As minor mistakes, we may mention that the three teeth of the Java Man were not all discovered by Dubois in 1891-2. One of the three came to light a few years later as a result of the expedition sent out by Madame Selenka. Polydactylism, brachydactylism and the "sex-linked disease, color-blindness" are by this time fairly well established to be Mendelian traits, and not "thought by a few" to be such. Students in heredity usually do not call such traits as color-blindness "diseases," And in calling such traits "sex-linked," author has himself implied something more than what is strictly Mendelian. The volume has more typographical errors than one would normally expect from American publishers. One error is perhaps serious, as it appears more than once; we refer to Professor H. F. Osborn being misspelt "Osborne""" page 143. Inspite of all this, we do not hesitate to recommend this volume as a good textbook for a term course in Race and Population Problems, provided of course the teacher knows how to make good some of the drawbacks we have men- tioned. For Chinese colleges and uni- versities which are not equipped with good reference library the volume will prove particularly useful, as it is in part a book of readings, containing as many as "some 650 quotations and cita- tions" which "present the major as wel! as some of the minor contributions to the field." OFFICIAL DOCUMENTS THE RAILWAY ENTERPRISE UNDER THE NATIONAL GOVERNMENT LA Brief History of the Ministry of Railways Dr. Sun Yat-sen said "Transportation is the key to Industries and Railway the key to Transportation." Verily the Rail- way is the fundamental instrument of transportation and therefore the founda- tion of industrial development. That is why Dr. Sun Yat-sen advocated, at the very beginning of the Republic, the con- struction of a 100,000-mile railway net- work. His advocation has taught us that without executing the Railway policy, material construction in China will be impossible. The National Government, acting on Dr. Sun's instruction, established November 1st, 1928 under the Executive Yuan the Ministry of Railways to take charge of the Railways in the Country and to consummate Dr. Sun's plan. Mr. Sun Fo was appointed Minister; Messrs. Lien Sing-hai and Wang Cheng were ap- pointed Political and Administrative Vice- Ministers respectively. On the day of the Ministry's inauguration, it consisted, as provided in the Organic Law pro- mulgated by the National Government, four departments, namely, the Depart- ment of General Affairs, the Department of Railways Administration, the Finance Department and the Department of Plan- ning and Construction with Messrs, Chen Yen Chun, J. K. Choy, Wang Cheng and Y. S. Chun as Directors of the respective departments. Messrs. C. S. Liu, T. C. Yen, Kuan Keng Lin and J. Usang Ly were appointed Counsellors. Having taken over from the Ministry of Communications all duties pertaining to Railways, the Chiaotung University in Shanghai, the Civil Engineering College in Tangshan, the College of Railway Ad- ministration in Peking and a chain of Railway Middle and Primary Schools es- tablished in the various Railway Centers for the education of the children of Rail- way employees; the Ministry set to work, Minister Sun Fo introduced in the Central Political Council of the Kuo- mintang two Administrative Policies; i.e. the Centralization of Railway Adminis- tration and the Independence of Railway Accounting System. Having passed these resolutions, the Central Political Council ordered the Ministries of War and Railways to execute these policies in full. The Railway enterprise in China began a new life. On account of the lack of Railway ex- perts in Chim, Dr. J. A. L. Waddell was retained as Consulting Engineer, Mr. J. J. Mantell as Adviser on Railway Man- agement, Mr. R. S. Norman as Legal Adviser and Mr. Wm. B. Poland as finan cial Adviser to the Ministry. For the sake of facilitating business transaction, an office of the Ministry was established at Shanghai with Mr. Tieh- sun Chen as Director. So much for organization let us now come to the administration of the various Railways. Since Nanking became the National Capital, the political and economic im- portance of the Nanking-Shanghai and the Shanghai-Hangchow-Ningpo Rail- ways has gradually grown. Mr. J. K. Choy was appointed to concurrently take charge of these administrations. The Peiping-Mukden and Peiping- Suiyuan Railways, being trunk lines of the North-East, have suffered great damages from internal strife of late. They urgently need rehabilitation. Mr. Wang Cheng was appointed to currently take charge of them. The Lunghai and the Tatung-Chengtu Railways were formerly administered by Directorates-General. Upon the recom mendation of the Ministry, the Executive Yuan abolished the above mentioned offices so that the administration of these Railways would be under one head in- stead of two. The settlement of the Tsinan Incident called for reorganization of the Kiao- Tsi Railway Consequently the Kiao-Tsi Railway Mhaging Commission was es- tablished with Dr. T. C. Yen as Chair- man of the Commission. Later with its head office removed to Peiping, the Hankow-Peining Railway was renamed as Peiping-Hankow Rail- way. Mr. W. T. Liu was appointed Man- aging Director. Messrs. Pan Ting-hsien, Sun Ho-kao and Faung Ta-chih were appointed Man- aging Directors of the Peiping-Suiyuan, the Tientsin-Pukow Railways and tho Hunan-Hupei Section of the Canton- Hankow Railway respectively. Then three Railways in Kwangtung came under the actual control of the Ministry. The Canton-Samsui Railway was amalgamated into the Canton-Han- kow Railway with Mr. Chen Yin Wen as Managing Director, while Mr. Liu Chiu-ko was made Managing Director of the Canton-Kowloon Railway. Upon the request of the Kianesi Pro- vincial Government, the Ministry took over the administration of the Nan- chang-Kiukiang Railway. Mr. Kung Hsueh Shui was appointed Managing Director. After the inauguration of the Ministry, the Ministry of Communications, acting on the order of the State Council trans- ferred to the Ministry of Railways all duties pertaining to National Highways. A National fighway Planning Commis- sion was organized with three Comis- sioners appointed by the Ministry and one representative from each of the Provincial Construction Departments and Mr. Y. S. Chun as Chairman. It com- pleted its task of planning in three months. The Ministry of Communications also handed over its European office at Paris which served as an organ to arrange for international through traffic. Upon tak- ing charge of this office, the Ministry appointed Mr. K. Y. Woo as Director and concurrently as Delegate to the International Railway Union representing the Peiping-Liaoning, the Peiping-Han- kow and the Tientsin-Pukow Railways. For the classification of goods and the determination of tariffs, the Advisory Committee on Fares, Rates and Class- ification of Goods was appointed with the Director of the Department of Railway Administration as Chairman of the Committee. In order to unify the accounting and statistical systems of the various Rail- ways, the Advisory Committee on the Unification of Railway Accounts and Statistics was appointed with the Direc- tor of the Finance Department as Chair- An Editorial Committee on Railway Rules and Regulations was also appoint- ed. Vice-Minister Lien Sing-hai serves as Chairman. To eliminate corruption in the purchas- ing of Railway materials, a purchasing Commission, a Commission on Selection of Tenders and a Commission on Inspec- tion of Purchased Materials were or- ganized. Later, the three Commissions were amalgamated into the Purchasing Commission with Messrs. Hu Chi-hsien, Tiehsan Chen and Chen Chiu An as mem- bers of the Standing Committee. Three Sub-committees were appointed to Pei- ping, Hankow and Canton. For the training of qualified person- nel for Railway Service, the improvement of the existing Railway Schools and the education of the low grade staff and laborers now in active service, the Com- mittee on Railway Education was or. ganized with at first. Mr. Y. S. Chun and later Mr. Kuan Keng Lin as Chairman. More than fifty years have elapsed since Chinn first adopted modern means of communication, but no complete and reliable record of the History of Com- munications is available. Since the or- ganization of a Committee to compile a history of communications under the auspices of the Bureau of Compilation and Translation in the defunct Peking Government in 1922, the history has not been completed although several changes had already taken place. The Ministry, in cooperation with the Ministry of Com- munications, organized the Committee for Compiling the History of Communica- tions with Mr. Kuan Keng Lin as Chair- man and Mr. Chang Hsin Cheng, a divi- sion chier of the Ministry of Communica- tions, as Editor-in-Chief. In last September Vice-Minister Wang Cheng resigned cn account of poor health. Mr. J. Usang Ly was appointed to succeed him. Meanwhile Mr. Hu Chi- hsien was appointed Director of the Finance Department, Dr. T. C. Yen was transferred to be Chief Technical Expert. Messrs. Liang Han Chau, F. K. Sah and Dr. King Cheng-yang were appointed Counsellors. Not long after, Mr. J. K. Choy was sent to Europe to study Railway condi- tions and problems. Mr. F. K. Sah was made acting Director of the Department of Railway Administration and Mr. Hu Chi-hsien was appointed to concurrently take charge of the Administration of the Nanking-Shanghai and Shanghai-Hang- chow-Ningpo Railways, The Peiping-Mukden Railways was renamed as Peiping-Liaoning Railway with Mr. Kao Chi Yi appointed Managing Director. The unification of administration in the Peiping-Liaoning Railway was effected. For one year after the establishment of the Ministry, no serious change in organization took place. But being new- ly established the division of duties in- side the Ministry worked more or less on a trial basis. As the Ministry goes on experience calls for reorganization. Therefore, on the 18th of last November, the National Government promulgated the revised Organic Law of the Ministry. In the new organization the Ministry is composed of the following departments and bureaus:- 1. The Counsellors' Office. 2. The Secretariat. 3. The "epartment of General Affairs, with Mr. Chen Yen Chun as Director. 4. The Department of Traffic ari Operation with Mr. Kuan Keng Lin as Acting Director. 5. The Finance Department with Mr. Hu Chi-hsien as Director. 6. The Engineering Department with Mr. F. K. Sah as Director. 7. The Railway Through Traffic Ad- ministration with Mr. Kuan Keng Lin as Acting Director. 8. The Bureau of Statistics with Mr. F. K. Mok as Director. 9. The Railway Health Service with Dr. S. M. Woo as Director. THE CHINA CRITIC March 13, 1930 March 13, 1930 THE CHINA CRITIC A resolution passed by the Second Plenary Session of the Kuomintang Cen- tral Executive Committee last Spring ap- propriated two-thirds of the Boxer In- demnity Funds for railway con- struction and decided that the Railway should Canton-Hankow be completed by the end of 1932. Therefore Commission on the Completion of the Canton-Hankow Railway was established with Mr. Y. S. Chun as Chief Commis- sioner and Mr. H. S. Chuck as Director of Construction of the Chuchow-Shao- The Ministerial Conference The Minister The Political Vice- Minister The Administrative Vice-Minister chow Section. The same resolution fur- ther decided that the Lunghai Railway should be completed by the end of 1934. Therefore a Commission on the Com- pletion of the Lunghai Railway was established with Mr. Kuan Keng Lin as Chief Commissioner, Mr. Ling Hun Huan as Director of Construction of the Lung- hai Railway and Mr. Ko Kuang Ting as Managing Director. As a compensation to the share holders of the Canton-Shaochow Section of the Canton-Hankow Railway the Ministry. Nationdu has bee authorized by the Government to issue $20,000,000, boils A to rede:m the shares outstanding. Board of Trustees for the Yueh-Han Railway Redemption Bonds was organiz- ed. Other organizations as the Advisory Committee on Railway Terminology and the Advisory Committee on Railway Loan Agrcements have come into existence as work demands. II. Analysis of Principal Duties. TABLE SHOWING THE ORGANIZATION AND WORK OF THE MINISTRY THE ADVISORS' OFFICE-Proposing, investigating, examining, and inspecting the plans, estruction and management of Railways and Rational Highways. THE COUNSELLORS' OFFICE Drafting, examining, deliberating on editing and com- piling rules, regulations and ministerial orders. THE SECRETARIAT Drafting, deliberating on and safekeeping confidential correspon- dence, editing and translating administrative reports and documents in for- eign languages, keeping records of ministerial conferences, taking care of the Library and the Museum, THE DEPARTMENT OF GENERAL AFFAIRS-Attending to the general affairs of the Min- istry and its subordinate offices and affairs not specially assigned to other offices, departments and bureaus. THE DEPARTMENTS OF TRAFFIC AND OPERATION--Attending to the traffic and operation of Railways and National Highways under the Ministry. THE FINANCE DEPARTMENT Attending to the financial aliairs of the Railways and National Highways under the Ministry. THE ENGINEERING DEPARTMENT-Attending to the engineering work of the Railways and Highways under the Ministry. THE BUREAU OF RAILWAY STATISTICS-Attending to the statistics of the Ministry and its subordinate offices. THE RAILWAY HEALTH SERVICE-Attending to the sanitary and medical affairs of the various Railways. THE THROUGH TRAFFIC ADMINISTRATION—Attending to domestic and international through traffic arrangements and the clearing of Railway accounts. RAILWAY PLANNING CAMMISSION-Planning Railway lines of the whole country. NATIONAL HIGHWAY PLANNING COMMISSION_Planning the Construction of National Highways. ECONOMIC COMMITTEE Making economic plans for operating and projected lines. EDITORIAL COMMITTEE ON RAILWAY RULES AND REGULATIONS Drafting, deliberating on and compiling rules and regulations. PUBLICITY COMMITTEE Centralizing publicity and editing official publications and statements. TECHNICAL COMMITTEE Studying and solving technical problems in Railway Engineer- ing. COMMITTEE ON STANDARDIZATION OF RAILWAY TECHNIQUE-Determining 12 standard of and working out improvement on Railway technique. PURCHASING COMMISSION-Purchasing materials for the railways. ADVISORY COMMITTEE ON THE UNIFICATION OF RAILWAY ACCOUNTS AND STATISTICS— Revising the Accounting Rules and Classifications, working out accounting me- thods, working out Statistical forms and Regulations, and suniniarizing other accounts. ADVISORY COMMITTEE ON READJUSTMENT OF RAILWAY OBLIGATIONS Readjusting the various Railways' obligations rising out of domestic and foreign indebtedness. COMMITTEE ON RAILWAY PERSONNEL-Investigating the qualification of railway em- ployees. COMMITTEE ON RAILWAY EDUCATION Reforming and improving on Railway education. COMMITTEE ON RAILWAY SCHOLARSHIP ABROAD-Determining the number of scholar- ships and investigating the qualification, examining the standard and exper- ience of scholarship holders and applicants. COMMISSION ON SUPPRESSION OF OPIUM SMOKING-Investigating, examining and Sup- pressing Opium Smoking that may be addicted by Ministerial and Railway staff. COMMISSION ON THE COMPLETION OF THE LUNGHAI RAILWAY-Taking charge of the planning, surveying, financing and construction of the unfinished sections of the Langhai Railway. COMMISSION ON THE COMPLETION OF THE CANTON-HANKOW RAILWAY-Taking charge of the planning, surveying, financing and construction of the unfinished section of the Canton-Hankow Railway. COMMITTEE FOR COMPILING THE HISTORY OF COMMUNICATIONS Compiling the History of Communications. Other Committees, Commissions and Conferences. The Shanghai Office. II. The organization of and Distribution of Work in the Ministry The Ministry of Railways plans, con- structs and manages all the state rail- ways and national highways. It super- vises all the province-owned and private railways. The Ministry of Railways is composed of: The Counsellors' Office. The Secretariat. The Department of General Affairs, The Dept. of Traffic and Operation. The Finance Department. The Engineering Department. The Through Traffic Administration. The Bureau of Railway Statistics. The Railway Health Service. The Commissions and Committees. The Counsellors' Office is composed of two Sections, the Legislative Section and the Compilation Section. This office attends to the drafting, delibera- tion, examination, compilation, editing, and registry of rules, regulations and Ministerial Orders. The Secretariat is composed of three offices, the Secretarial Office, the Editori- al and Translation Office and the Library. The Secretarics attend to the drafting and custody of confidential correspond- ence, the deliberation of official docu- ments, the editing and translation of official publications, statements, and docu- ments, and the records of the Ministerial Conferences. The Department of General Affairs is composed of the Business Division, the Division of Documents and archives, the Division of Education and the Personnel Division. This Department attends to:- 1. The receiving, despatching, distribu- tion, drafting and safekeeping of docu- ments. 2. The issuance of Ministerial Orders. 3. The custody of the Ministerial Seals, 4. The appointment, dismissal, reward, and punishment of the staff of the Minis- try and the staff of the officers under the Ministry. 5. The compilation of administrative reports 6. The training and education of ex- ecutive and technical personnel for the Railway service. 7. The education of Railway employees the administration of Railway schools. 8. The Ministerial estimates, budgets, accounting and miscellaneous affairs. 9. The affairs not especially assigned to other offices, departments, bureaus, committees or commissions. The Department of Traffic and Opera- tion is composed of the Traffic Division, the Operation Division and the Labor Division. This Department attends to:- 1. The supervision, management, im- provement and development of the traffic business of the Railways. 2. The management and control of Railway operation and the rolling stocks. 3. The determination of fares and rates. 4. The domestic and international through traffle arrangements. 5. The approval of traffic equipments. 6. The working condition and protec- tion of Railway employees. 7. The training and control of Railway police. 8. The adoptation of plague-preven- tive and other sanitary methods in the Railways. 9. The supervision of the province- owned and private Railways. 10. International Railway problems. 11. The operation and traffic of nation- al highways. The Finance Department is composed of the Division of Financial affair, the Division of Audits and accounts, the Division of Railway 'Obligations and the Division of Investigation. This Depart- ment attends to:- 1. The drawing up and checking of railway estimates and budgets. 2. The control and safekeeping of Railway funds. 3. Raising funds for rehabilitation and construction of Railways. 4. The readjustment and repayment of Railway loan; and obligations. 5. The auditing of Railway accounts and bills. 6. Railway accounting system and statistics. 7. The management of Railway pro- perties. 8. The purchase and management of Railway land. 9. The economic planning and in- vestigation of Railways, 10. The supervision of the finance of the province-owned and private Rail- ways. 11. Other financial affairs of the Rail- ways. 12. The financial affairs of national highways. The Engineering Department is com- posed of the Division of Civil Engineer- ing, the Division of Mechanical Engineer- ing and the Planning Division. This De- partment attends to:- 1. The supervision, management and rehabilitation of engineering affairs in the Railways. 2. The Location of Railway lines and the planning of Railway engineering. 3. The supervision and management of the engineering work in Railway con- struction, 4. The construction of Railway ter. minus and municipal construction in the Railway concs. 5. The examination in materials for civil and mechanical engineering in the construction of Railways. 6. The construction and management of Railway shops and stores. 7. The supervision of the engineering work in the province-owned and private Railways. 8. Other engineering work in the Rail- ways. 9. Engineering work in the nationa highways. In the Ministry of Railways, there shall be one Minister, one Political Vice- Minister, one Administrative Vice-Minis- ter, two to four Counsellors, four to eight Secretaries, four Department Directors, twelve Division Chiefs, one hundred twenty to one hundred sixty clerks, one Chief Technical Expert, sixteen to twenty Technical Experts, twenty to thirty Junior Technical Experts an twenty to twenty-four Technical Assist ants. For the planning of the National Rail- way Network, the national highway sys- tem, the unification of Railway account- ing system, the compilation of Railway rules and regulations, the purchasing of Railway materials and the standardiza- tion of Railway technique the Ministry of Railways organizes a number of com- mittees and commissions. In the Ministry of Railways, the Through Traffic Administration take: care of domestic and internationa! through traffic and Railway clearing, the Bureau of Railway Statistics takes care of Railway statistics, the Railway Health Service takes care of the medical and sanitary affairs of the various Railways. 電報簡碼 三〇四六 歐美各國每月潭二元五角 三個月:七元 六個月举十二元五角 全年廿四元 上海山東路二二歳 中國境內每月一元 三個月洋三元 六個月洋五元 全年洋九元 法 收載 力作 於制 院府之 宏別 商 農廣 大出 界穎 工告 凡心 貢深 報價低廉....故費用經濟 提綱絜領·····故腦力經濟 標題醒目.....故時間經濟 BANK OF CHINA Re-organized October 26, 1928, Under Special Charter Of The National Government as q INTERNATIONAL EXCHANGE BANK Subscribed Capital Paid-up Capital Reserve Funds .$25,000,000.00 $24,710,200.00 $ 3,820,503.82 With our numerous Branches and Sub-Branches throughout China and Correspondents in most of the important commercial cities of the World, we are able to extend to our Clients Banking and Ex- change facilities indispensable for the development of trade on a large scale. We also handle the issue of Bonds and other public funds of the Government both in the country and abroad, Chairman of Board of Directors: Managing Directors: CHANG KIA-NGAU FONG KENG-KUANG SUNG HAN-HANG K. P. CHEN Managing-Director and General Manager: CHANG KIA-NGAU Manager of Shanghai Branch: TSUYEE PEI Head Office: 22 The Bund, Shanghai. London Agency:34 Old Broad Street, London E. C. 2. Bank of Communications ESTABLISHED IN 1908 Under special charter of the National Government as an INDUSTRIAL BANK ..$10,000,000 Head Office: 14 The Bund, Shanghai. Branches throughout China and correspon- dents in foreign countries. Every description of banking business transacted. Transfers made to all parts of China and abroad. Privileged to issue Banknotes and to act as a Government Depository. Facilities for de- velopment of industry and commerce extended. Chairman of the Board: LU HSUBH-PU Manager, Shanghai Branch: S. M. TONG Managing Directors: YIKAO KOU CHENGYIH LI Y. M. CHIEN THE STATISTICAL MONTHLY SPECIAL ISSUE ON THE SILVER QUESTION Vol. II No.1 Portrait of Dr. Sun Yat-sen ARTICLES January, 1930 The Lesson We Should Learn From the Silver Situation, by Hu Han-min, President of the Legislative Yuan. Remedy for the Silver Situation, by Ma Yin-cho, Legislator. The Maritime Customs Should Levy a Gold- Silver Ratio Surtax, by T. M. Liu, Chief of the Third Division of the Bureau of Statistics. Remedy for the Siver Slump, by B. Y. Chu, Chief of the Fifth Division of the Bureau. Proposed Reform for China's Curency System, by Chang Chia-hsiang, Expert of the Bureau. Losses due to the Silver Slump and Remedies, by Tung Meng-chen, Assistant Editor of the Bureau. Some Temporary Remedies for the Silver Slump, by Chang Chia-hsiang. Causes of the Low Value of Silver and Some Urgent Remedies, by Wang Chung-wa, Chief of the Statistics Division of the Ministry of Communications. Causes of the Silver Slump and Probable Effects of the Gold Customs Duties, by D. K. Lieu. Director of the Bureau. A Sady of the Value of Silver, by C. Sun, Expert and Editor-in-Chief of the Bureau. STATISTICAL TABLES Changes in the Gold-Silver Ratio, 1687-1929. China's Gold Import and Export, 1890-1£t28. China's Silver Import and Export, 1890-1928. Net Import of Silver into British India, 1890-1928. Shanghai Gold Bar Quotations, 1921-1929. Shanghai-London Exchange Quotations, 1906- 1929. Shanchai-New York Exchange Quotations, 1920-1929, Sharehai-Tokyo Exchange Quotations, 1921- 1929. Shanghai Stock of Silver Svece, Silver Dollar and Bar Silver by Months, 1923-1929. GIM Reserve of the Principal Nations, 1913- Silver Production and Silver Price in Gold, 1890-1928. Annual Value of the Net Foreign Trade of China, 1887-1928. Subscription rate: (China and Japan) $3.00 a year, $1.50 Half a year; 30 Cents per copy. (Foreign) $5.00 a year,$2.50 Half a year; 45 cents per copy. Published by BUREAU OF STATISTICS LEGISLATIVE YUAN On Sale Also at The China Critic Office 95 Carter Road, Shanghai. 年七十國民華中 日九十月一十 神筛詳 銷 之盡 數努周持消 力人論 息 之才之之 表之靈 現盛允敏 亦卽與紀 之可達 達不十 老知 二斷餘 萬的年 發之年 資卽行繼歷十 格此而續五五 卽此夫載 精設之 新力之於老 與則精祉而 General Manager: T. D. Woo 閣下如欲洞悉時事 寶號果欲發展營業 CIGARETTES FROM THE VIRGINIA MEDIUM STREKOTH CAPSTAN Navy Cut Cigarettes WD. & H.O.WILLS. Bristol & London' 20 CIGARETTES 20 MEDIUM STRENGTH Cigarettes W.D. & H.O. WILLS Bristol & London SOLD THROUGHOUT THE WORLD This advertisement is issued by the British-American Tobacco Co., (China) Lig. In any further communication on this subject, please quote F2802/141/10 and address-not to any person by name, but to- RECEIVED 27 MAY 1930 "The Under-Secretary of State," Foreign Office, London, S.W. 1. COL OFFICE THE Under-Secretary of State for Foreign Affairs presents his compliments to The Unter Sariciary the Colonies and, by direction of the Secretary of State, transmits herewith cop of the under-mentioned paper. Foreign Office, 26 M Reference to previous correspondence: onial office intres 72710/30 Description of Enclosure! F 28 M nach 1930 Name and Date. 4.M. Minis cu Desprich 12 402 3 ape 1930 Subject. claims of Hongkong Government for compensativon in respect of suspension of thrown Compre གག་དན ·ནང་་མི་ཐཔད་ 14-20295 12/29 (2) Similar letter sent to No. 402 (6/52.0.) Copy to Canton Hong Kong BRITISH LEGATION. PEKING. 3rd April 1930. Hong Kong No. 23 of 11/3/30. With reference to despatch Number 106 from this Legation of January 30th, enclosing copies of correspondence with His Excellency the Governor of Hong Kong, concerning the claim of the Hong Kong Government for compensation in res- peat of the suspension of through traffic on Janton-Kowloon Railway, I have the honour to transmit herewith a copy of a further despatch from the officer Administering the Government of the Colony, in which he states that Sir Cecil Clementi's letter Humber 4 of January 2nd has been forwarded to His Majesty's Consul-General at Canton for such action as he may feel able to take. The Right Honourable Arthur Henderson, M.P., YOABION OFFICE. I am not yet aware whether or not Mr. Phillips, to whom, as well as to Mr. Southern, your telegram Number 33 of February 3rd was repeated, has presented the claim put forward in the above letter to the Provincial Authorities, but in any case I presume that, should His Majesty's Govern- ment consider it ill-founded, on the grounds suggested in my despatch Number 1794 of December 12th laat, any necessary instructions will be issued by the Colonial Office to the Government of Hong Kong with a view to the desgation of such representations which may have been made. I have the honour to be, With the highest respect, Your most obedient, humble servant, (SIGNED) MILES LAMPSON. No. 23 (1243/1923) NLS 1/3: ALR GOVERNMENT HOUSE, HONG KONG 11th March, 1930. I have the honour to acknowledge the receipt of your despatch No. 11 (1/520), dated 30th January, containing a reference to the despatch No. 1794 (6/520) to the Foreign office, a copy of which accompanied your note of 16th Deo- amber, 1929. I desire to express my regret at the inconven- ience caused by the erroneous forwarding to your address of Sir Cecil Clementi's letter to His Majesty's Consul-General, Canton. I have to thank you for returning the letter, which has now been sent to the Consul-General, Canton, for such action as he may feel able to take in the matter. I would explain that the course adopted in ap- proaching the Canton authorities direct was suggested in a telegram from the Colonial Office dated 15th June, 1929, on the subject of the inclusion of these claims for payment from the Boxer Indemnity funds. The last paragraph of that telegram reads as follows:- "I would suggest that, if you consider any satis- factory settlement is likely to be reached, you should request His Majesty's Minister to take up the matter independently with the Chinese Government. however, prefer to take it up again first with the provincial government at Canton." You may, According to the signed oopy of the Working Agree- ment which is on file here the article quoted in the fourth His Britannic Majesty's Minister, paragraph/ X40 in our front of the diff (celto after 10) paragraph of your despatch should be numbered 38 and not 32. This article, which is entitled "Suspension of Agreement," has in the past been interpreted as re- ferring to a suspension of the Agreement itself, not to the temporary suspension of through traffic, which seems to be covered by article 7 (1). Although, as you point out in the seventh paragraph of the despatch, the Agreement has not been ratified, it has frequently been quoted by both the Chinese and British sections of the Railway as being in the nature of a binding obligation. I attach for your information a copy of the claims still outstanding up to the end of January 1930. I have the honour to be, Your most obedient servant, (SIGNED) W.T.SOUTHORN. Officer Administering the Government. SUMMARY OF CLAIM FOR SUSPENSION OF TRAFFIC Total for the year $164,309.84 247,989.78 231,216.73 223,356.11 68,430.29 5,905.46 23,966.40 Reference to letter from Manager (British Section) to Managing Director (Canton) M.R.letter No.276 of 25/5/29. M.R.letter Nos. 304 & 32 dated 10.6.29 & 9.1.30 respectively. Jan- uary 1930 3,844.83 M.R. letter No.105 of 18/2/30. $969,019.44 Summary of Claim for Demurrage in respect of British Section Stock detained on the Chinese Section. Total for the year Reference to letter from Manager (British Section) to Managing Director (Canton) $24,430.00 22,869.00 M.R. letter No.276 of 25/5/29. 9,089.00 $56,388.00 Grand Total $1,025,407.44 In any further communication on this subject, please quote F2262/141 and address-not to any person byʼname, but to— "The Under-Secretary of State," Foreign Office, London, S.W. 1. RECEIVED - 2MAY 1930 OL. OFFICE THE Under-Secretary of State for Foreign Affairs presents his compliments to The Sualow of for the Colonies and, by direction of the Secretary of State, transmits herewith copies of the under-mentioned paper. Foreign Office, Reference to previous correspondence: FD. Leasi Name and Date. F113/141 kə Description of Enclosure] closure 2 April 1930 H. M. Minista Despacen No: 270 12 Maich 1930 Subject. Rohntilication of chinese ༡༥、 of Canim. Kowloon Railway. Similar letter sent to 14-20295 12/29 (2) No. 270 (5/52C) His Majesty's Minister, Peking, presents his compliments to His Majesty's Principal Secretary of State for Foreign Affairs, and transmits herewith three cop ies of the undermentioned 12th. March 19...... Reference to previous correspondence: Despatch to Foreign Office Printed Letter number 185 of 20/2/1930. Description of Enclosure Name and Date. Subject. Note from Wai Chiao Pu Canton Kowloon Railway. of 20th. February 1930. Chinese Section. Copy to Hongkong Translation. FROM WAI CHIAO PU TO H.M. MINISTER. 20th. February 1930. I have to acknowledge the receipt of your note of the 27th. of last month, stating that the Chinese Section of the Canton Kowloon Railway is very much in need of rehabilitation, and forwarding a copy of a memorandum prepared by the Government of Hong Kong; and requesting that the matter be brought to the attention of the Ministry of Railways, so that they may at an early date undertake the repairs. On receipt of the above note, this Ministry immediately approached the Ministry of Railways that they might act upon it and the following reply has now been received: "In regard to the matter of the letter from the Governor of Hong Kong, requesting the rehabilitation of the Chinese section of the Canton Kowloon Railway, We have instructed the Administration of the said railway to consider this question, and send us a report upon which action may be taken." I have the honour to communicate this for the information of Your Excellency, and I avail myself of this opportunity, etc. (SIGNED) WANG CHENG T'ING. In any further communication on this subject, please quote F1799/141/10 and address-not to any person by name, but to- "The Under-Secretary of State," Foreign Office, London, S.W. 1. THE Under-Secretary of State for Foreign Affairs presents his compliments to The un for the colonies and, transmits herewith copies of the Foreign Office, Suiciary of finte direction of the Secretary of State, REO Entivned pare * 3 APR 1930 OOL.OFFICE Reference to previous correspondence: Name and Date. F. 0808/31/10 Description of Enclosure 2 Jun, 900 Subject. 4. M. Representative Rehabilitation of Canton - Kousls a.... Dispaino: 185° Perg1930 20 Fely 1930 Similar letter sent to 14-20295 12/29 (2) 185 (4/52C) His Majesty's Minister, Peking, presents his compliments to His Majesty's Principal Secretary of State for Foreign Affairs, and transmits herewith 20th. February 19.......... cop ies of the undermentioned Reference to previous correspondence: Despatch to Foreign Office Printed Letter No. 1596 of 6/11/1929. Description of Enclosure Name and Date. Despatch from Governor Hong Kong No. 64 of 6/12/1929. Note to Wai Chiao Pu of 22/1/1930. Copy to Hong Kong. Rehabilitation of the Canton Kowloon Railway. No 64. TM:LK. GOVERNMENT HOUSE, HONGKONG. 6th. December 1929. CONFIDENTIAL. Copy to Canton No. 182. I have the honour to acknowledge with thanks, the receipt of your despatch No. 116 (5/52.C)dated the 5th. of November 1929, and to forward herewith a statement, drawn up by the Manager of the British Section of the Kowloon-Canton Railway, of the wishes of this Government in regard to the rehabilitation of the Chinese section of that Railway. I shall be glad if you will avail yourself of any suitable occasion for bringing this statement to the notice of the Minister for Foreign Affairs. I have the honour to be, Your most obedient servant. (SIGNED) C.CLEMENTI. Governor, etc. His Britannic Majesty's Minister, FOR ENCLOSURE PLEASE SEE ENCLOSURE IN NOTE TO WAI CHI AO PU OF 22/1/1930. MITISH LODATION, 22 JAN 1930 Hougkom das. his Pelaj I have been requested by the Governor of Hong Kong to invite Your xeellency's attention to the interest of his Government in the rehabilitation of the Chinese section of the Canton-Fowloon Railway. As Your Excelleney is aware the Chinese and British sections of this railway are operated in close conjunction under the Joint Working Agreement of 1911 which provides for through-traffic over the lines of the two sections, the pro- seeds of whien are pooled and divided according to a fixed ratio. It is thus apparent that the prosperity of the two sections is largely inter-dependent and that anything which affects the efficient operation of either section is a mat- ter of considerable concern to the other. The affairs of the Canton-Fowloon Railway were dis- cussed in September last between Sir Cecil Clementi and Mr. J.E. Choy of the Chinese Ministry of Railways and the latter then alluded to the need for rehabilitation of the Chiress seotion. Sir Cecil Clementi strongly endorses the view that such rehabilitation is urgently required in order to render the whole line capable of producing adequate returns and he / wishes His Xxcellency, Daster C.7. Minister for Foreign Affairs, MANK ING. wishes me to place on record the importance which his Government attach to the execution at an early date of measures calculated to place the Chinese section on a sound basis. I have the honour to enclose for the information of the competent department of Your xeellenoy' a nevarnaant a statement of the improvements and repaire which in the opinion or the Government of Hong Kong are required on the Chinese section in order to increase the earnings of the whole line to their full capacity. It will be seen from the mclosed statement that disproportionate dalla have recently been made upon the British section of the railway to provide locomotives and coaching stock to meet the requirements of through-traffie over the whole line, and that even so the extra 100omotives and coaches provided by the British section cannot be exploited to their full earning capacity for the benefit of the joint parse of the railway owing to defects in the track on the Chinese section. In the circumstances I should be grateful if Your Ex- cellency would call the serious attention of the Ministry of Railways to the needs of the Canton-Kowloon line and re- quest that the necessary meŭsures of rehabilitation on Chinese section may be undertaken as soon as possible in order to place this joint Sine-British enterprise on a sound footing. I avail myself of this opportunity to renew to Your Aroellenay the assurance of my highest con- sideration, (SIGNED) w.m. Hewlet form himal Enclos, in hober of 6/12/201 Statement of the Wishes of the Hong Kong Goverment dead his Kela with regard to the Rehabilitation of the Chinese bection of the Canton-Kowloon Railway. Many more sleepers, probably some 30,000, are necessary before express through trains um be run at the most advantageous speeds and thereby attract all possible through passenger traffic. More ballast appears to be necessary in many places, especially on the approaches to bridges where embankments Bave settled. LOCOMOTIVES. Three ne reas locomotives are now on order by arrangements made between the Bang Kong dove rium en t and the Provincial Goverment of Kwangtung, md are due for delivery in England in April next. It will however not be possible to obtain the best service from these locomotives unless the track is made safe for fast running. COACHING STOCK. The Chinese Section, to be in position to supply its full quota of coaches and to meet emergencies, requires at least twenty more coacher; sixteen however would suffice for the immediate future. When the Chinese section has to run troop trains, it usually calls upon the British Section to replace Chinese ösation thire class coaches on ordinary trains with British Section stock. Thus the British Section is relied upon te expend a disproportionate amunt of capital in providing ocaching stock which should be found by the Chinese Section. The Chinese Bection is unable to contribute any stock towards Tourist Special trains. The British Section is about to acquire eight more coaches in anticipation of additional trains being necessary when the three new locomotives are brought into service and to relieve other coaches for overhaul. TELEGRAPH POLES. These are in such bad condition generally that the lightest storm blows them down and interrupts telegraphie communication when most urgently required. Underground cable is strongly recommended, failing which, now and substantial poles are considered essential. GOOD TRAFFIC FACILITIES. The goods traffic at present osrried is almost negligible, but this should not be 30. up through good traffic from Kowloon is very considerably greater than that down from Canton, which means expense and loss in hauling empties one way. The principal reasons for this lack of business are, the difficulties consignors have in paying Likin and export duties, and the lack of facilities for goede traffic at Canton. The creek alongside the goods yard is tidal and is silting up. Transport of goods by river seems to be preferred in both directions as Likin charges, if any, are lighter by water than by land route, and consignees are given longer time before removing cargoes by junk, or obtain better facilities in regard to storage in gedowns, The Hailway goods-shed at Canton is very small. 25.11.29. In any further communication on this subject, please quote No. F 1687/141/0 and address-not to any person by name, but to- "The Under-Secretary of State,” Foreign Office, London, S.W. 1. THE Under-Secretary of State for Foreign Affairs presents his complinents to་་ ཨ་ the Coloni, and, by direction of the Secretary of State, transmits herewith cop of the Foreign Office, 18 March, -mentioned paper. 31 MAR 1950 COL. OFFICE Reference to previous correspondence: FDLRU of 5 Faly 193 Description of Enclosure. Name and Date. ★ M. Repriseni. 101/1106 30J 190- Subject. Luspension, of Gaffic on ་་ལ་་ང་རག པ་་ཐ་གཚང་ Similar letter sent to 14-20295 12/29 (2) No. 106 (1/52.C.) CONFIDENTIAL His Majesty's Minister, Peking, presents his compliments to His Majesty's Principal Secretary of State for Foreign Affairs, and transmits herewith of the undermentioned 30th January 1930. 19............. Reference to previous correspondence: Despatch to Foreign Office No. 1794 of 14/12/29. Description of Enclosure Name and Date. Subject. To The Governor, Hong Kong, despatch No. 11 of 30/1/30. Kowloon-Canton Railway: Recurring acts of damage. #6.1. (1/520). Copy tos- 3.0.. H.M.Minister, 30th January, 1930. Hongkong death to Danton Bo. I have the honour to asmowledge the receipt of Your Exaellenay's despatch of the 3rd of January, forwarding a copy of a letter, No.4 of the and of January, addressed to His Majesty's Consul-General, Canton, on the subject of damage to the Chinese section of the Canton-Kowloon Railway and outstanding claims against the Chinese section in mapeot of sug- pension of traffic and demurrage, A few days before the receipt of this letter, the signed copy of the same desjatah, addressed to His Majesty's Consul-General, Canton, had been re- ceived in this Legation, and it was then supposed that the oopies for Canton and for the Legation had been interchanged; is now alear, iwwerer, that both copies of this despatch have been forwarded to Peking in error, and I have accordingly the honour to retur the signed oopy herewith. Since this despatch was written, Your Kxosilency will no doubt have receiyed the copy, for- warded on the 16th of December, of His Majesty's His Excelleney, Sir Ceail Clementi, K.C.A.0.. Governor, HONGKONO. Minister's despatch to the Foreign Office, No.1744 of the 14th of December, in which he referred to the Secretary of State the question of the presentation to the Chinese Government, in accordance with the request contained in Your Excellency's previous despatch No.58 (1115/1915) of the 6th of November last, of claims for suspension of traffic on the Railway in Eay last. It will be seen from this report to the Foreign Office, that 3ir Eiles Lampson felt some hesitation in pressing such a clain against the Chinese Goverment,as he was in considerable doubt as to whether a claim for compensation for suspen- sion of tmffie could be held to lie against the Chinese Government, in view of the somewhat ambiguous terms of the particular sections of the dorking Agreement under which the claims are put forward, and he asked for a ruling on the subject before taking any action in the matter. 4. The question of the presentation of the whole claim for suspension of tractie sinos 1923 to the Danton Government would appear to be subject to many of the saS e considerations as were put forward by Bir Mĵles Lampson in hio despatch to the Poreign office in regard to that of the presentation of a part of the olaim only to the Central Government, and I have accordingly the honour to suggest that, in the event of Bis Bajesty's Conaui- General at Canton having failed to tace any action in the matter owing to his not having received Your Exuellen ay'a despatch of January 2nd intended for him, any further question of the presentation of these claims might be deferred until a ruling has been received from the Secretary of I have the honour to be, Your xolienoy's obedient servant, (In the absence of His Majesty's Minister) (sd.) M.B. INGRAM. No. 5 (1249/1923) X/JHG1FKK GOVERNMENT HOUSE, HONG KONG. 3rd January, 1930. The Governor of Hong Kong presents his compliments to His Britannic Majesty's Minister, Peking, and has the honour to forward for his infor mation the accompanying copy of letter No. 4 of the 2nd of January, 1930, to His Britannic Majesty's Consul-General, Canton, on the subject of the constantly recurring acts of deliberate damage to the Chinese Section of the Kowloon-Canton Railway and outstanding claims against the Chinese Section of the Railway in respect of suspension of traffic and demurrage. His Britannic Majesty's Minister, PEKIN G. Copies to Secretary of State No. 3. Peking No. 5. Government House, Hong Kong, 2nd January, 1930. Received alocade in I have the honour to refer you to my letter of 6th November, 1929, to His Britannic Majesty's Minister, Peking, a copy of which was sent to you on the same date, on the subject of outstanding claims against the Chinese section of the Kowloon-Canton Railway, and to request that you will, in view of the events subsequent to that date, direct the serious attention of the Canton Government to the constantly recurring acts of deliberate damage to the Chinese section of the Kowloon-Canton Railway, which cause serious loss of reven- ue to this Government by suspending through traffic as well as by general interference with the normal and legitimate trade between Hong Kong and Canton. On the 9th May this year, the big bridge at Shek T'an ( ) was blown up by Canton Government troops and traffic was consequently suspended until the 26th May. On the 10th of December a 20-lbs. charge of dynamite connected with a battery was found on the line between Sha Taun ( ) and Sun Tong ( On the 13th December a big bridge at Shek Ha ) (No. 85) was blown up, causing serious damage and the suspension of the train service again for an indefinite period. In this case the ends of two of the three 60-ft. steel spans were practically destroyed where bearing on the second pier. His Britannic Majesty's Consul-General, CANTO N. Sha Po ( On the 17th December a third bridge (No. 66) near was blown up and further serious damage caused. In this case two of the three 15-ft. steel spans were badly damaged and the supporting pier so badly cracked that it will require to be rebuilt. The claims to be made in accordance with Article 7 (f) of the Working Agreement of 8th September 1911, will, on the stipulated scale of half the average gross receipts of the British section for the corresponding month of the previous year, probably work out at a minimum of about $660 per day during December and the total will of course depend upon the duration of the stoppage. 4. I would further request that you should bring to the notice of the Canton Government the fact that claims in respect of suspension of traffio and demurrage up to the end of 1928 and still outstanding, to the total amount of 3997,596.21, have been filed against the management of the Chinese section of the Railway, with a further 311,438.16 for the period between 1st January, 1929, and the present suspen- sion of traffic on 13th December. Although olaime made under the Working Agreement quoted above must be filed against the Railway authorities, I would desire that you should emphasize the opinion of this Government that the responsibility for such wanton aots of destruction as are enumerated in my second paragraph above must lie with the Canton Government, upon whom devolves the duty of providing adequate protection for the permanent way on the Chinese seotion. I have the honour to be, Sir, Your most obedient servant, (SIGNED) C. CLEMENTI. Governor, &o. Delahunt 20/3 Bickle 21 Mr. Bottomley. Sir J. Shuckburgh. Sir G. Grindle. Permt. US. of S. Parly. U.S. of S. Secretary of State. 72710/30 March, 1935 The 2. S. ft. Tel to our companion dood. (Mpcy).500.9% I am etc. to ack wooledge Re receipt of your letter No. F 919/141/10 of the 27th February. regardy claim's in respect of the suspension of traffic on the Cantin-Kowloon Railway. and to transmit to you for hur. Sec. Handerson information. Celegram + a copy of a despatch which i hang addressed to the have been sent O. A. J. & Hong Kong, stan 2. Having req.nd to the views expressed In De Arcumstances the in Love Cutters under act nowledgment the Secretary of State does not Consider it necessary te comouth #.54. Munster at Peking inst santfect matter. Should he cursul test in the matter gned) WALTER D. ELLIS Delubent 20/3 Bickle 21 •Str. Gent 27 Mr. Bottomley. Sir J. Shuckburgh. Sir G. Grindle. Permt. U.S. of S. Parly. U.S. of S. Secretary of State. đang xông o. a. G. Tel to? Mich 30 The. have with asilitaci asili frei copy to 7.0% comp.oth. 42710/30 28 March, 1930 I have etc. to acknowledge Eur C. Clemente 'S Re recupt of Your dispatch No. 3 of the 3rd January concerning 16.34 damage done toke Chmise See hōn Ne Kowloon - Canton Railway and outstanding clainis afourst Re management Re Ohniese section in repoch of suspension of traffic and demmurafe, the conform my telegram 1 the 24 it - thaoch, . I have to inform for theat any of the enclosed 2_.) have carefully considered Sir. Mr. Lampson's despatch off he Support. 14th Decemtic, No. 178/4 of which a why has been supplied: YouD (6/526) in consultation withh Re S. Pos. for F. A., Mor Jan Hunderadorsed that the in the past one British section of the Cantoño- Kono-loon Railway for compusation his respect of suspension of traffic to legally extremely weak, and Rat it is practically extem improsable to addle Re Chinese Gout K Re responsibility of preventing daway chering a fisted of revolutionary disturbance, which It is abse open to the tificad Rut Re tarafi arose out ifacts- of lawful warfare. The clavi - in "quity don not rest in legal basin; bor hould it be likely abpear to be hi to only to succeed, and ts salt he inware 15 pass it. H.M.G. have so many large and Vahe Chain's outstanding against Pl bothly be Chinese Gort Rut it would better en lite impedicions to put forward a claim resting on no legal grounds and havus is prospeck 1) being allowed. 3. In the circumstances I consider that the clamos for compensation for suspension of traffic hurch he abandoned at the oth I should be glad to be furnished with Perticalars of the ont standing Clainio for dimurrage, I have età (Signed) PASSFIELD. Dela hunt 20/3 Beckle. 21 Mr. Bottomley. J. Shuckburgh. Sir G. Grindle. Permt. U.S. of S. Parly. U.S. of S. Secretary of State. 22 alouer 12.20pm. 247/3/ booked Pent DRAFT. úlegram Governor Ang xông (Without powocky') Your despatch god (2) January. Kowloon - Canton Raulway Claims Leand Support withholdy of park of sun due to chinese Section in account account brun Cannot be supp Traffic Recupts / ho deduction in respect of suspension of traffic should be mado for Such a due چیز فنا porn should be to Chinese Section on a ccount off Cla. from Chinese hear with suspens Lin Worth robbie Despatch follows In any further communication on this subject, please quote No. 149/141/10 and address—not to any person by name, but to- "The Under-Secretary of State," Foreign Office, London, S.V. 1. RECEIVED - 7 MAR 1000 COL. OFFICE THE Under-Secretary of State for Foreign Affairs presents his compliments to The for the colonies Sunviary of sente and, by direction of the Secretary of State, transmits herewith cop of the under-mentioned paper. Foreign Office, 6 Mnich, 193→ . Reference to previous correspondence: nine offe Spic live 62921/20 Description of Enclosure. Name and Date. Subject. H M. Minisbu Doprei no 1826 vy 19 0.10 1729 Nationalisation of Carton Hanhow (Kuangtung Section) Railway. 14-20295 12/29 (2) Similar letter sent to No. 1826 (4/125) BRITISH LEGATION PEKING. Copy to: Janton, Hongkong. 19th December, 1929. Regulations I have the honour to report that a Central Government Mandate dated November 5th was promulgatad in the Gazette of the following day directing that the Canton Hankow Railway, Kuangtung seotion, which was constructed mainly by private Chinese enterprise, should be nation- alised, and ordering the Ministry of Railways to issue a public loan for the redemption within a fixed time limit of the privately held shares. A few days later the Gazette (of November 18th) published the regulations governing the issue of the new Canton Hankow (Kuangtung Section) railway redemption bonds. A oopy, in translation, of these regulations is enclosed herewith. be noted that the bond issue is limited to The Right Honourable Arthur Henderson, X.7., POREIGN OFFICE. $20,000,000 ... $20,000,000, that the interest is fixed at the peculiarly low rate of per annum, and that the service is to be met out of the surplus earnings of the line. 2. I presume that this scheme, which is main- ly of interest to us as oreating a new lien on a por« tion of the future Canton Hankow lway, has some connection with the proposals now on foot for the completion of the railway and in normal circumstances the redemption of the private shares of the Yuet Han Railway Company and the nationalisation of the Sou- thern section with a view to its incorporation in tă whole line would be natural and proper tepe to take, In existing circumstances however it remains to be hether or not the proposed bond issue is serious- ly meant or whether it is merely a scheme for expro- priating the private shareholders. I have the honour to be, With the highest respect, Your moet obedient humble servant, (Signed) MILES LAMPSON. fuelen. in dematah to 7.0. No. 1826 of 19th Deo. 1929. From Goverment Casette Mandate 5/11/29 6/11/29. The Canton Hankow Railway in Kuangtung ought forthwith to become national property, and the Ministry of Railways is ordered to issue a public loan wherewith to redeem within a set time that part of the stock at present privately held. TRANSLATION GOVERNMENT GAZETTE OF NOVEMBER 18th 1929. Regulations of the Canton Hankow Railway redemption Bonds (Kwangtung Section) issued by The Hinistry of Railways. In order to redeem the private stook of the Danton-Hankow Railway Co. (Kwangtung Section), The Ministry of Railways decides to issue the Canton-Hankow Railway redemption Bonds. The total amount of the Bonds shall not exceed $20,000,000 (National Currency). The bonds shall be exclusively used for the redemption of the privat stook of The Canton-Hankow Railway Co. but not for the government stock. Every five Canton dollars of the above-mentioned private stock are to be exchanged for Bonds of $4.00 national currency. The bonds shall be issued on 1st January 1930. The bonds shall bear interest at 2ƒ p.a. payable on 30th June and 31st December. The reimbursement of the Bonds and coupons shall be made from the Surplus Fund of The danton-Hankow Railway (Kwang tung Section) and it is required to deposit the necessary fund as stated in the Table of Instalments with the Central Bank of China for payment of drawn bonds and matured coupons. From the first year of the issuing of the Bonds up to the end of the fifth year, the coupons only are payable. by annual drawing The principals of the Bonds shall be redeemed from the sixth year of $1,000,000 each year until the whole amount is fully paid. After the issuing of the Bonds, the Sinking Fund Committee shall be responsible to keep the funds in safe custody and to supervise the payment of Bonda and coupons. The said committee is to consist of seven members as below, the organisation constitution of the Committee shall be published separately. Two from the Ministry of Railways. Two from the Bondholders Two from the Local Chamber of Commerce One from the Auditing Bureau. The bonds are of 3 kinds: $100.- $40.- and 34.- They are bearer certificates. The Bonds are transferable and may be used as security. Those who have committed the act of forging, or discrediting the bonds shall be duly punished. The present regulations shall come into effect on date of promulga - In any further communication on this subject, please quote F 919/141/10 and address not to any person by name, The Under-Secretary of State," Foreign Office, London, S.W.1. RECEIVED 28FEB 1930 ICOL.OFFICE FOREIGN OFFICE, 27th February, 1930. I am directed by Mr. Secretary Henderson to refer to Colonial Office letter No. 72710/30 of the 14th instant, regarding claims arising out of the suspension of through traffic on the Canton-Kowloon Railway. Mr. Henderson is advised that the claim part of the British Section of the Canton-Kowloon Railway for compensation in respect of the suspension of traffic is legally extremely weak, and that it is practically impossible to saddle the Chinese Government with the responsibility of preventing damage during a period of revolutionary disturbance, while it is also open to them to plead that the damage arose out of acts of lawful warfare. The claim in equity does not rest on a sound legal basis, nor would it be likely to succeed, and it would in Mr. Henderson's view be unwise to press it. His Majesty's Government have so many large and valid claims outstanding against the Chinese Government that it would in Mr. Henderson's view be injudicious to put forward a claim resting on no legal grounds and having no prospects of being allowed. the circumstances Mr. Henderson is very doubtful of the wisdom of presenting even a modified claim on behalf of the British Section of the Railway: he is, however, prepared to ascertain the views of His Majesty's Minister at Peking as to the advisability of this course if Lord Passfield so desires. Your obedient Servant, Ciw. Orde The Under-Secretary of State, Colonial Office. 72708/30. 10 March 1930 Fr.0.5.0.24.2.30. with reference to your letter No.F.5640/57/10 of the 14th November, 1929, and connected corresponderne on the subject of the Boxer Indemnity Punds, I am directed by Lord Fassfield to transmit to you the accompanying copy of a telegram from the officer Administering the Government of Hong Kong concerning the quastion of utilising Indemnity funds for the construction of a loop line to connect the Canton- Hankow and the Canton-Kowloon kailways. The Secretary of State is inclined to agree with the opinion expressed in paragraph 4 of your letter under reference that the building of the loop line should be left entirely to the decision of the Chinese, and he does not wish to press for specific mention of this project in connection with the Indemnity 3. I am to enquire in connection with THE UNDER SECRETARY OF STATE, PORSIGN OPPIJS. paragraph 3 pa graph 3 of your letter of the 14th November whether any record of the conversations with Mr. J.K.Choy are available for transmission to the Officer Administering the Government of Hong Kong Your most obedient servant, (d) Walter D Ellis 101r 1 artin 14.2.30 2. Elles 12/2 Mr. Bottomley. Sir J. Shuckburgh. Sir G. Grindle. [/ Permt. U.S. of S. Parly. U.S. of S. Secretary of State. 2 DRAFT, cons on 72710/30 14 Feb 1930 am etc. to act. the receipt of Jour letter No. F. 439/141/10 of the 5th Feb?, regarding clamis The Under-Sols, 3.1.30 (2) with end To N.K. Comp off Dft. Lil arising out of the suspension of through traffic on the Canton-Kowloon Raitway, and to transmit, for the inform? of the S. of S. for F.A., a copy of a desp. from H.K. on this subject. 2. hord Pars field is not satisfied that the Article of the fount working Agreement refered to in your baragrafle 3 of your letter is in its elf a sufficient justification for refeediation of the Hong Kong clains, It is Aspecte While recoguing that the parties may be temporarily prevented) owing to war e rebellion from fulfilling the terms e forris was the Agreement, it does not absolve them from [otis liability to soon as these hindrances are removed. Morlovel the British Section of the Raitway would affear to have a strong claim in equity acaust the Chuise Goot for the very heavy losses involved by the fact are maintain that Gost to the preservation Mr. Bottomley, Sir J. Shuckburgh. Sir G. Grindle. Permt. U.S. of S. Parly. U.S. of S. Secretary of State. of order responsible for which the It was 3. The S.GS. therefore feels that every effort should be made to persuade the Chinese Gost. to accept liability for the compensation claimed. He would be frefared, however, agree to to recognize very special difficulties in which they rede NA NA were placed the gadg to the extent g proposing that bonds for $500,000 only should be should be accepted in full e final settlement of all clamis in respect of compensation for ruspension of traffic and demurrage arising there from up to and to wear. including 11929. therefore, to transmit the dift of a telegram which, to Mo itenderson's concurrence, he would propose to address to the O. A.G. of H.K. Hany WD Ellis 72710/30 Markan 16.2.30 Alr. Ellis Ha Mr. Bottomley. Sir J. Shuckburgh. Is Sir G. Grindle. || Permt. U.S. of S. Parly. U.S. of S. Secretary of State. To go to Fo for concurenc DRAFT Consor 7 Cypher tel Hong Kong Your desk. of 3rd Jan No. 3. I think it is clear that claim if any must lie apamst Chinese Goot and that Chemise Section of of Railway are correct in repudiating liability at least for compensation for suspension of traffic. In vieww however of considerations mentioned in paragraphies (8) 4 and 7 of these 14.M. Minister", desh of 14 the December to Foreign Office No. 1794 Hong Kong fosition is not strong Chrough defensible on grounds Would you agree to H.M. Minister being instructed to endeavour to obtain persuade Chimère Gost to agree to get Eliability for . $500,000 in final settlement of clammis up to end of 19 29. Meanwhite be has been requested to make no representations pending instructions. In any further communication on this subject, please quote No. F 313/1461/10 and address-not to any person by name, "The Under-Secretary of State," Foreign Office, London, S. W. 1. RECEIVED -7FEB 1930 COL. OFFICE THE Under-Secretary of State for Foreign Affairs presents his compliments to Ime unau Suicia Suictory of state for the Coloniand, by direction of the Secretary of State, forch transmits herewith cop of the under-mentioned paper. Foreign Office, Feby, 1930. Reference to previous correspondence: Description of Enclosure. Name and Date. Subject. Protective Despatch mos on Canton Railway. Similar letter sent to 14-20078 11/29 (2) (F 510/141/10) British Consulate General, 20th December 1929. With reference to my telegrams Nos. 11 and 14, dated the 14th December and the 19th December, respectively, I have the honour to enclose herewith for your information the following document: A copy of my despatch to the Engineer-in-Chief of the Canton-Kowloon Railway, at Tungshan, dated the 20th December, 1929, describing the steps taken by the Chinese Authorities to safeguard the Railway. Copies sent to H.M. Minister at Peiping, and to H.E. the Governor at Hongkong. I have, etc., (Signed) G.S. Moss. Acting Consul-General. His Majesty's Principal Secretary of State for Foreign Affairs, Foreign Office, London. H.B.M. Consulate General, 20th December, 1929. I beg to inform you that yesterday I followed up my letters and three interviews with the Commissioner for Foreign Affairs regarding sabotage on the Chinese Section of the Canton- Kowloon Railway by calling on His Excellency the Chairman of the Provincial Government of Kwangtung. I invited his attention to the gravity of the menace to the Railway, recounting that since my written request that adequate protection should be afforded after the attempted sabotage at Km.31%, severe damage had been suffered through explosions to Bridges 85 and 66. I pointed out that the prestige of his Government, its communica- tions and its finances demanded urgent attention to the situa- His Excellency replied that he much regretted the acts of sabotage, which he attributed to guerilla every bands who had taken advantage of the fact that all available troops had been thrown into the fighting line at a critical moment. He assured me that the situation was engaging his serious attention and that he had detailed two Battalions to guard the Railway. He regretted that owing to the military menace to Canton he had not been able to spare these troops to guard the Railway before. (Sd.) G.S. Moss. Acting Consul-General. W.M. Stratton, Esq., etc., etc., etc., The Engineer-in-Chief, The Canton-Kowloon Railway, Chinese Section, Tungshan, (F3/141/10) British Consulate General, 20th December 1929. With reference to my P/1 Despatch No. 60 dated 20th December, 1929, on the subject of the steps taken to guard the Canton-Kowloon Railway, I have the honour to enclose herewith for your information the following document: Copy of my despatch to H.M. Minister at Peiping, No. 199, dated 20th December, 1929, informing him that 1,600 soldiers had been detailed to guard the Railway. I have, etc., (Signed) G.S. Moss. Copy sent to H.M. Minister at Peiping. His Majesty's Principal Secretary of State for Foreign Affairs, etc., etc., etc., Foreign Office, Acting Consul-General. Mr. Moss to Sir Miles Lampson (and 3 copies) Copies to:- F.O. No. 61 H.B.M. Consulate-General, Hongkong No. 342. December 20th,1929. With reference to my telegram No. 103 of the 19th instant regarding an assurance by the Chairman of the Provincial Government that two battalions of troops had been detailed to guard the Canton-Kowloon Railway, I have the honour to inform you that 1,600 men of the Fourth Independent Regiment left Canton last night for stations on the Railway. 250 men are to be posted at Sha Po and 250 at Shek Ha where the bridges were damaged. His Majesty's Minister, Peiping. I have, etc., (Sd.) G.S. Moss. Acting Consul-General. In any further communication on this subject, please quote No. F 439/141/10. and address-- not to any person by name, "The Under-Secretary of State." Foreign Office, London, S.W.1. RECEIVED -6FEB 1330 COL. OFFICE FOREIGN OFFICE. 5th February, 1930. I am directed by Mr. Secretary Henderson to transmit to you herewith a copy of a despatch from Majesty's Minister at Peking, enclosing copy of a despatch, with enclosures, addressed to him by the Governor of Hongkong on the subject of the suspension of through traffic on the Canton-Kowloon Railway. 2. Mr. Henderson concurs generally in Sir M. Lampson's views and considers that if any claim on the part of the British section of the Canton-Kowloon Railway for compensation in respect of the suspension of traffic lies at all, it can only lie against the Chinese Government and, therefore, that the British section would in no circumstances be justified in withholding the amounts due in respect of current operations to the Chinese section of the railway. 3. Article 7(f) of the canton-Kowloon Railway Joint Working Agreement appears only to contemplate some political emergency in which the respective governments are in control of the situation and suspend the running of trains of their own volition, and does not appear to relate to emergencies such as war and rebellion in which the working of the railway is stopped without the wish and consent of the government The Under Secretary of State, Colonial Office. concerned.... concerned. In any event, Article 32 of the Agreement contemplates war and rebellion as factors operating to justify the parties in failing to fulfil the provisions and conditions of the Agreement. 4. If Lord Passfield shares Mr. Henderson's views the appropriate instructions will no doubt be despatched to the Governor of Hongkong: in the meanwhile, Sir M. Lampson is being instructed, in a telegram of which a copy is enclosed, to defer approaching the Chinese Government in the sense desired by Sir C. Clementi. Mr. Henderson will be glad to learn whether Lord Passfield agrees that these instructions should be made final. Your obedient Servant. Cw. Orde Ro. 1794 (0/620) Copy to liongkong, Carton. BRITISH LEGATION PEKING. 14th. December 1929. From hongkong 6 Bovember 1929. with reference to your despatch number 741 (F.3442/31/10) of July 24th, last, I have the honour to transmit herewită a copy of a despatch from the Governor of kongkong in which be requests me to present to the Chinese Cov÷rnment e claim for compensation in respect of suspension of through-traffic during the current your on the Canton- owloon Railway. Having carefully considered this claim in the light of the information in my possession, including the Canton-Zowloon failway Joint working agreement of 1911, I hesitate to take tas responsibility of pressing it upon the Chinese Government without an authoritative ruling on the subject, seeing that I am in some doubt aa to whether it can be justified. Although the partien- The Might Honourable, arthur Benderson, E.7.. etc. eto., FULSION OFFICE. particular claim in question amounts only to some 211,400:- the question at issue involves mich more important sums since, as you will be aware from the previous correspondence, the Government of the Colony bare recorded old olaims under the same head for the years 1923/1988 amounting to nearly a million dollars. I do not understand that it is their intention to abandon these although there is no record here of their having yet been formally presented to the Chinese Government (see Sir Cecil Clementi'a telegram to 7on 62834/29 the Secretary of State for the Colonies number 5 of xay 28th. last). 3. The claim in question are put forward under Article VII olsuse (f) of the working Agreement which states that:- "when in circumstances of political emergency it is necessary either for the Hongkong Government or for the Chinese Government to suspend the ruming of through trains, due notice (not less than six hours clear) shall be given by the one Government to the other and compensation shall be paid by the Govern- ment requesting such suspension.. clause is peculiar one and I am in some doubt se eireume tanees it oRD have been intended cover (although an / illustration illustration is afforded by the fact that the Chinese Government previously accepted a claim for compensation under this article in a cave where the Canton Viceroy had, in 1911, requested the suspension of through-traffie for five days in order to facilitate troop movemen I much doubt hether the alause "cirouzetanoes of political emergency" was intended to cover revolutions, civil warfare and similar circumstances beyond the control of the Go- vernment concerned, sinse, followed out logically, such an inter- pretation would mean that, in the event of a meetion of the line going more or less permanently out of action owing to oir- cumstances over which it had no control (a practical possibility which, if we consider the realities of Chinese polities, umat be admitted) the Government concerned would thereby become liable to subsidise the other party indefinitely. It is difficult to define the exact intention of the alause in question but that the above interpretation was not intende is, I think, made clear by Article 52 which contemplates the suspensi ca of the Agreement during civil war in the following terms:- hen either party 18 temporarily usable at any time owing to war or revolution to fulfil / provisions provisions and conditions of the Agreement, each party shall, after due and reasonable notice, withdraw all plant which belongs to it from the section of the other party and may work ite own section independently of the other, arranging for the closing of the books and accounts up to the day of the aus- pension or this Agreement This article may have been overlocked by the British section of the railway when formulating their olala. 5. To sum up, I sympathise with the Government of the Colony in the inconvenience and material loss repeatedly caused to them by the interruption of through-traffie by civil disturbances affeating the Chinese section, but in view of the terms of the working Agreement, I cannot avoid grave doubts as to whether a claim for compensation can properly be held to lie against the Chinese erernment 6. Moreover, I think that the Government of the Colony pro- bably share my view that, in view of the present financial difficulties of the Cuiness milways, it would be invidious to press all such claims as well as extremely difficult to induce is clear? the Chinese Government to accept them. It seems unlikely how- ever that the latter •Vanaware f the existence of se earlier olaism (please see the correspondence between the two seations of the railway enclosed in Sir Cecil Clementi's despatch) and in the event of any claim for mspension of traffie being presented I see no logical alternative to formally recording the whole a- mount of claims outstanding ander this head. Otherwise the Chinese may assume that, by presenting the 1929 claim alone and enforcing it by with-holding the amount from the cash balance due to the Chinese section of the Railway, we are attempting to man- couvre them into acceptance of the principle underlying such claims witli a view to subsequent recovery of the disproportionate- ly larger amounts outstanding in respect of previous years. Finally it should not be overlooked (in connection with the possibility of this claim becoming the subject of a controversy between His a jesty's Government and the Chinese Government) that the agreement in queation was never formally ratified on the Chinese side. I have the honour to wita the highest respect, sir, Your most obedient, humble servant, (SIGNED) KILES LAMESON. No. 58 (1118/1915) Canton 170. GOVERNMENT HOUSE, HONGKONG. 6th. November 1929. With reference to my despateh No. 253 to the 3 cm 628 34/2 Colonial Office dated 17th. May 1929, copy'of which was forwarded to you under note dated 26th. May, I have the honour to forward the accompanying copies of correspondence between the Manager of the British Section of the Kowloon-Canton Railway and the Managing Director of the Chinese Section on the subject of the former's claim to compensation in respect of suspension of through traffic in Hay of the current year and to request that efforts may be made to induce the Central Government to shoulder the liabilities which the Managing Director repudiates. It should be explained that the item, $6,364.79, hire for the year 1923, does not require cash payment but only confirmation with a view to clearing the accounts. The amount was at the time agreed upon by the accountants of the two Sections and adjustment made, but formal confirmation by the Managing Director or the period was not obtained owing to the hasty departure fr political reasons of the official in question. I may say that I do not propose, pending receipt of your views, to authorise the Manager of the British Section to comply with Mr. Liu's request for payment without / deduction His Britannic Majesty's Minister, deduction of the funds held by the former for the account of the Chinese Section. I have the honour to be. Your most obedient servant. (SIGNED) C. CLEMENTI. Governor eto. No.684/8/18. CHINESE GOTERISKENT RAILWAYS, Canton-Kowloon Line. Managing Director's Office, 20th. August 1929. The Manager, Kowloon-Canton Railem, y, British Seation, Kowloon. I understand that on the Chinese Section Traffic Receipt Account with you, ending 17th. August 1929, we have a standing credit balance of over $21,000.00. As the Chinese Section is urgently in need of money for the necessary improvements or the line, such as buying sleepers and other materials, I take this opportunity to ask you to be kind enough to send us a cheque for $20,000.00 to meet our need. Much obliged. I have, eto. (SD.) G.C. LIU. Kanaging Director. No. 487. KOWLOON CANTON RAILWAY. British Section. Manager's Office. Kowloon. Dated 6th. September 1929. The Managing Director, Canton-Kowloon Railway, Chinese Section, I have the honour to søknowledge the receipt of your letter No. 684/8/18 of the 20th. instant, requesting me to forward you a cheque for $20,000 from the balances standing to the credit of your Section in our hands. I would however remind you that our claim against your Section for $5,334.79 incurred in 1923 for hire of rolling stock, agreed to by your Seation, remains uneon-

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