§ Mr. GINNELLasked the Secretary of State for Foreign Affairs whether he is aware that concessions for the making of railways in China have been obtained by financial pressure, bribery, and other improper methods, and British diplomatic pressure afterwards successfully invoked to enforce the terms of such concessions; and whether, in order to revive Chinese confidence in British enterprise, he proposes in future to make an independent investigation and favourable report a condition precedent to assisting in the enforcement of the terms of any project for a railway in China?
§ Mr. MCKINNON WOODNo, Sir; I am not aware that British concessions for railways in China have ever been obtained by the methods indicated by the hon. Member. Nor has diplomatic pressure been applied in respect of such concessions, except in cases where the Chinese authorities have manifestly failed to comply with the terms to which they had voluntarily agreed.
§ Mr. GINNELLasked whether His Majesty's Government have any report from an independent source that the railway from Canton to the Kowloon territory can ever repay the principal or pay interest on the outlay in its construction and its working expenses; whether he is aware of the contention of the Chinese Government that this railway, forced upon them by speculative adventurers without any authentic Chinese approval, can never meet those liabilities, and that they can be paid only by taxes imposed upon the Chinese people; and whether independent evidence in support of this view is available to His Majesty's Government?
§ Mr. MCKINNON WOODWe have received no such report. At present, the construction has been little more than begun, and time only can prove what the financial results will be. I have not heard before of the suggestion made by the hon. Member that the Chinese Government contends that the railway can never meet its liabilities. I have no reason to suppose that it represents the views of that Government. The agreement for the construction of the railway was signed and ratified by Imperial Edict at Peking in the spring of 1907.
§ Mr. GINNELLasked whether, in the interest of China and of legitimate foreign enterprise in that country, His Majesty's Government will require the Peking Syndicate and the persons controlling and profiting by the Shanghai-Nanking and the Canton-Kowloon Railways to make restitution to China out of the proceeds of their respective projects; and, if not, whether the support of His Majesty's Government is to continue available for forcing foreign loans upon China for unremunerative purposes?
§ Mr. MCKINNON WOODThe hon. Member appears to be under some misapprehension. The Shanghai-Nanking and Canton-Kowloon lines are both Chinese Government railways, though constructed by means of loans raised in this country, and any profit or loss arising out of their working would accrue to or be defrayed by China, I would add that His Majesty's Government have never forced foreign loans upon China for unremunerative purposes, nor is there any intention of doing so.
§ Mr. REESIs there any reason to suppose that British Concessionnaires in China receive more assistance from their Government than other Concessionnaires receive from their Governments?
§ Mr. MCKINNON WOODCertainly not.