No. 154.
Mr. Denby to Mr. Bayard.

No. 321.]

Sir: Adverting to my dispatch No. 288, of date the 12th ultimo, about the proposed construction of a railway between Tientsin and Taku, wherein I explained that, owing to the opposition made by the censors, operations were suspended, I have now the honor to inform the Department that I understand from a reliable source that that opposition is now being overcome and the viceroy Li is giving attention to the subject again.

There are two plans before the viceroy for the Taku railway—one proposed by General James H. Wilson and Russell & Co., last autumn, and one urged by the salt commissioner of Tientsin, The latter plan is simply to extend the railway from the Kaiping coal mines to the Peiho River near Taku, and thence along the north bank of the Peiho to Tientsin, and later on to Tung Chow (a city about 12 miles from Peking), and to do this all with Chinese capital and management. The first plan (General Wilson’s) was agreed to last year, and in consequence the general went to the United States to carry it out; but, as I have already stated, operations were suspended, owing to the opposition of the censors.

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I have, etc.,

Charles Denby.