File No. 893.77/1587
Minister Reinsch to the Secretary of State
Peking , January 31, 1917 .
Sir: I have the honor to report that the Minister of Communications has assigned an additional alignment of railway to the Siems-Carey Company, under its contract of May 17, 1916. This alignment is to connect the towns of Chowkiakow, Yencheng, Yuchow and Nanyangfu, in Honan, with Siangyangfu, in Hupeh. Chowkiakow and Siangyangfu are, respectively, the most important commercial centers in eastern Honan and northern Hupeh. Siangyangfu is the most important trade center in the Han River valley.
As, under the terms of its principal contract, the Siems-Carey Company is entitled to branch lines and extensions, the railway from Siyangfu up the Han River valley is potentially embraced in this alignment: an oral agreement has already been arrived at with the Ministry to the effect that should the British-Chinese Corporation, which [Page 174] holds the Pukow-Sinyang concession, not object to the building of a connecting line between Sinyang and Siangyangfu, the Ministry will immediately authorize the construction of the railway from Siangyangfu up the Han River valley.
The representative of the British-Chinese Corporation has stated that he believed this construction would be welcomed by his Corporation, provided American capitalists would assist in making possible the immediate construction of the Pukow-Sinyang Railway. This is highly desirable from every point of view. The railway is necessary and will be profitable. The undertaking of such a joint enterprise with American and British capital is greatly to be desired.
An engineering expedition is leaving this week for a survey of the Chowkiakow-Siangyangfu Railway. Mr. Carey is in favor of immediate construction.
I have [etc.]