No. 130.
Mr. Avery
to Mr. Fish.
Peking, November 12, 1874. (Received January 28, 1875.)
Sir: You are well aware with what persistency this legation, as well as other legations, has labored to impress the Chinese authorities with the advantages of railroad and telegraph enterprises as means of developing the resources of the empire, swelling its gains through an extended commerce, and giving the government more power and facility in asserting its authority and enforcing order in districts remote from its secluded capital. You are aware, also, that the Chinese authorities have met all arguments on this subject by assertions of the dangers to be leared from the introduction of novelties, loss to the people from throwing them out of employment, &c. Undiscouraged by repeated failures, the advocates of progress have continued their efforts to move the Chinese mind and to arouse this old empire from its inertia.
Latterly it would seem that the Chinese are beginning to learn and to yield a little under the pressure so long applied. They contemplate apparently without alarm, certainly without comment or protest, the work now under way for the construction of an experimental railroad at Shanghai. This road, only twelve or fourteen miles long, is to connect that important city with the Woosung bar, in the river-entrance to the harbor, which at low tide so often delays vessels inward-bound. It is [Page 224] purely a private enterprise, promoted by foreign mercantile interests, which bought the land over which the track will pass and are doing the work without any concession from the Chinese authorities, although the Tautai knows very well what is going on. The projectors of this short railway trust that its operation will do more to enlighten the natives as to the value of railroads generally, and to convince them that no mischief can result therefrom, than any amount of argument.
The subject of telegraphs has received attention in a more decided way. Mr. Williams, in his No. 51, under date of August 3, 1874, advised the Department that the Formosa trouble had made the Chinese officials at Peking realize the inconvenience of their isolated position and convinced them of the need of more rapid communication. The governor-general at Foo-chow had already allowed the “Great Northern Telegraph Company” of Denmark to erect a line from that city to the Pagoda anchorage, a distance of about twelve miles only, and had contracted for a cable thence to Formosa. The Foo-chow experiment was operated so satisfactorily that a proposition from the same company, to erect a line overland between Foo-chow and Amoy, both in the province of Fuhkien, a distance of about one hundred and eighty-seven miles, was agreed to by the foreign-trade committee, on behalf of the Chinese provincial authorities, with the Great Northern Telegraph Company, who were to have an exclusive franchise for thirty years. By the terms of this agreement two Chinese officials were to accompany the engineer of the company in locating the line, which it was understood should not pass through the large cities along the route; nor should the poles be put up in the public roads so as to obstruct travel, nor in the people’s fields without their consent; neither should any graves or tombs be interfered with. The Chinese authorities were to give, official protection to the line during and after its construction, and allow the leasing of ground and erection of watch-houses at intervals of ten miles, said houses to be in the care of Chinese employés. The company were to be permitted to obtain ground and erect stations at or near the two prefectual cities of Hing Hwa and Chin Chen, where European operators might reside. The Chinese reserved the right to buy the line at any time after its completion, at actual cost, with interest at a rate to be mutually agreed upon; in the event of such purchase the company to be debarred from erecting a competing line. The company were to put up two wires, one to be worked by the company in its own interest for commercial purposes, the other solely in the interest of the Chinese authorities and for government purposes only, the latter wire to be worked by the company for the government until its own appointees are able to perform the work, the company meanwhile supplying the government with office-room and instruments at Foo-chow, Amoy, and intermediate stations, free of charge, and agreeing to instruct Chinese lads appointed by the authorities in the art of telegraphy, also free of charge. Other provisions of the agreement relate to securing secrecy and dispatch for government messages, and to such subsequent modifications as may be mutually agreed upon, the Chinese authorities finally agreeing to do ail things convenient and reasonable to facilitate the early completion of the line.
The foregoing agreement was effected in good part through the aid of Mr. M. M. De Lano, United States consul at Foo-chow, who had previously obtained permission for the erection of the telegraph from Foo-chow to the Pagoda anchorage. The subsequent history of the matter, up to October 7, 1874, may be best given in Mr. De Lano’s own words as they occur in a letter to Mr. Williams under the above date: [Page 225]
Before I had time to get the document completed, the Chinese sent their own deputies, of Wai Tuans, over to join the company’s engineers and start away on the survey. Just at this time the officials reported to me that they had received a communication from Shên Pao Chen, imperial commissioner to Formosa, to say that all land-lines of telegraph in China should he owned by the Chinese and built by Chinese capital, and they feared this would interfere with the project of creating the Amoy line on the basis of the terms agreed upon. From that moment I saw, on the part of some of the officials, a disposition to recede from the concession which had been given and to treat the matter with indifference, in fact to manufacture obstacles to render the scheme impracticable. At the request of the company’s agents I sought and obtained an interview with the Tartar general, governor-general, and the Foutai, with whom I discussed the matter freely, and at length obtaining from them a ready admission that the project had their assent, and a final suggestion that, as Shên Pao Chen had written them as above stated, the company should name the price at which they, the Chinese, could take it over when completed, in case they should find it expedient to buy it. Soon after this interview the Taotai, (president of the trade-committee,) who had been most active in the company’s behalf, was superseded by a man who readily arrayed himself against the scheme, in obedience, it is said, to the Tartar general, who is also found now to be opposed to the project. The late Tautai Luh, whose card I inclose, is now on his way to Peking. Before leaving here he called upon me, and assured me that the viceroy, the Foutai and himself were in favor of the line being constructed, but that the Tartar general and present Taotai were opposing it. He promised that on his arrival in Peking he would explain to the Yamen how the concession was made by the high provincial officers, and that if he could bring any influence to bear at the capital in favor of the project.* * He has been and is decidedly on the side of progress, and to the extent of his ability has aided in the advancement of schemes for the advancement of foreign interests and for the progress of the Chinese.* * I have just now been informed by the agents of the Great Northern Telegraph Company that an envoy has just been appointed by the Danish government to proceed to China.
* * * * * I am informed that the officials here have been advised by the Yamen to purchase the Foo-chow and Pagoda anchorage line. The company declines to sell it, fearing it would be allowed to fall into disuse. Its construction has demonstrated that land-wires can be easily erected in China, and that the authorities can easily protect them, if they choose to do so.
Under date of October 17, Mr. De Lano informed Consul-General Seward, as I learn through a copy of his letter just furnished me by Mr. Seward, that about eight miles of the Foo-chow and Amoy line had then been completed, land purchased for a station, and a station-house erecsed, which was occupied by one of the company’s employés; all this without one word of opposition from the people along the line. Yet it was known to the company that the officials did not wish the world to go on. At first they simply said the company must wait. Then they addressed an official dispatch to Mr. De Lano, requesting him to order the work stopped, saying that, if the people tear down and destroy the line, the authorities will not be responsible, nor will they undertake to give protection to the company’s employés in case they should be attacked by the people. This change on the part of the authorities is thought to have been caused by an intimation from the government at Peking that the action of the provincial authorities in granting a foreign concession, or what is claimed to be such, is not approved. If the statement made to Mr. De Lano, that the imperial government wishes to construct telegraph-lines itself, be not a mere pretext to prevent their construction altogether, there is ground for the belief that China may be contemplating a most important step in advance on her own account. Should the choice arise between no telegraphs at all or telegraphs under Chinese ownership and control, everybody who desires the advancement of the Chinese more than some selfish advantage must prefer the latter alternative. Foreigners would, in any event, have the profits of construction and of management until such time, far in the future, as Chinese may have learned to do the work efficiently by themselves. Foreigners would also derive the advantage [Page 226] to their commercial, financial, and political interests which rapid communication, even in Chinese hands, would insure.
How far the concession to the Danish company may go toward constituting a claim which the expected Danish envoy would be justified in urging upon the imperial government, I do not know; but if, as I presume is the case, the provincial authorities acted on their own responsibility entirely, under the impulse of the Formosa difficulty, the Peking government may disavow their proceedings and nullify the contract. If it can be shown that they are in any manner bound to respect it, they may conclude to purchase rights which they cannot simply ignore. Much will have been gained, in any event, by bringing the subject of telegraph-building directly before the central authorities, since they will be compelled to discuss it as never before, and may be led to a decision favorable to progress.
One embarrassment may arise from recognizing the Foo-chow and Amoy concession which may influence the decision of the Peking authorities, and that is the danger of rival applications for similar favors from many different nationalities. So long as the Danish company, representing a modest and unaggressive nation, possessed only the lines of shore-cables, no rivalry was excited; but now, that they seem to have obtained the privilege of erecting land-lines, others will apply for concessions. Already it is reported that Russia, which has long desired to connect its Siberian line with Peking, has renewed its request for permission to do so, reminding the authorities here that on a former occasion they promised, if any telegraphic concessions were granted, Russia should have the preference. Russia may now support the demand for the carrying-out in good faith of the provincial concession to the Danish company. In the face of so much importunity the Chinese may decide to undertake telegraph enterprises on their own account.
Still another effort has been made in behalf of the Great Northern Telegraph Company, which was aided by Consul-General Seward, Mr. E. C. Lord, United States consul at Ning-po, and Mr. C. A. Alabaster, Her British Majesty’s consul at the same place. It being understood that the provincial authorities had expressed themselves not unfavorable to a line of telegraph between Ning-po and the provincial capital, Hang-chow, Mr. Seward advised Mr. Lord that he could with propriety, if he felt so disposed, exert his influence to procure a concession for this purpose, it being a matter which concerns all foreigners, and which may be the means of aiding in the general introduction of the telegraph in China. During August and September last, as I learn from correspondence forwarded to this legation by Mr. Seward, Messrs. Lord and Alabaster co-operated with Mr. Dreyer, of the Great Northern Telegraph Company, in an effort to obtain the desired concession. For a time there was reason to hope they would succeed, but in October the high officials, to whom the matter had been referred, gave a decision adverse f to the project. Nevertheless, as Mr. Lord says in his final letter to Mr. Seward, under date of October 17, “it is well that the matter has been brought so prominently before the authorities. It will have an influence for good. Some sudden pressure may come upon them to change their policy. In this case the way is open for them to act. Besides, the matter has come before them in such a form that they must think about it; and thinking about it may lead them to the conclusion that telegraphs, after all, though foreign, may be useful to the Chinese.”
In conclusion of this narrative, I have only to say that, in view of the general interest taken in any signs of progress in China, and considering [Page 227] that a diplomatic question may arise from the complications detailed, I have thought it my duty to lay all the facts on this subject before the State Department, with intention of following them up with whatever may be developed hereafter.
I have, &c.,