§ Mr. GINNELLasked the Secretary of State for Foreign Affairs if he will state the annual loss and the total loss to date sustained by the Chinese Government on the bonds, maintenance, and expenses of working under a British staff the railway constructed by the Peking syndicate, for which the Chinese Government have been forced to accept responsibility, seeing that 2130 the Chinese contention that this railway can never pay has been proved by experience to be correct; and, in view of the hardship of raising taxes from the Chinese people for those purposes from which no return is expected, whether His Majesty's Government intend to have the bonds and agreements in this matter set aside for mala fides; and, if not, whether the assistance of this Government will still be given to the syndicate in enforcing its terms against China?
§ The UNDER-SECRETARY for FOREIGN AFFAIRS (Mr. MCKINNON Wood)This railway, which was only made for the transport of the syndicate's coal from their mines, was taken over by the Chinese Government in 1905. I am, of course, not in a position to furnish the figures desired. The imputations in the question, which appear to be offensive, are without foundation.
§ Mr. GINNELLIs the hon. Gentleman in a position to state how much of the working expenses of this line are paid annually by the Chinese in addition to the £35,000 interest on the bonds?
§ Mr. MCKINNON WOODCertainly not. The Chinese Government made an arrangement with a syndicate to which His Majesty's Government was not a partner.
§ Mr. GINNELLasked the Secretary of State for Foreign Affairs if he will state the total amount of loss sustained by the Chinese Government on the Shanghai-Nanking Railway since its opening for traffic; whether this has been paid out of taxes imposed upon the Chinese people; whether the control of the administration and working is still retained in British hands; and if he will state the grounds upon which His Majesty's Government assist in imposing this burden upon China?
§ Mr. MCKINNON WOODI am unable to state the amount of loss, if any, sustained by the Chinese Government on this railway, since its opening for traffic in March, 1908. The system of control established by the Loan Agreement in the form of a Board of Commissioners (Chinese and British) was suspended shortly afterwards by mutual consent, and its powers were delegated to its Chinese chairman. He, as managing director, was henceforth responsible for the working of the railway. The suggestion contained in the last sentence of the question has no justification.
§ Mr. GINNELLIs it not a fact that the Chinese managing director is in a minority of one against four on the Board?
§ Mr. MCKINNON WOODIf the hon. Member wishes an answer, will he kindly put down a question?
§ Mr. GINNELLIs the right hon. Gentleman in a position to explain the existence of what are called "profit certificates" issuing out of this project, on which a substantial dividend is paid, while the railway is being worked at a huge loss?
§ Mr. MCKINNON WOODI can only give the hon. Member the same answer as I gave to his last supplementary question.