Chinese Railways and the Townley Agreement of 1903

In: Modern Asian studies, Volume 7, Issue 2, p. 145-164

Abstract

British financial interests in China, since 1895, had been closely linked with political and strategic considerations. As the political and financial rivalry between the European powers intensified, the link tightened, becoming increasingly essential for mutual preservation. European finance meant railways, mineral rights, arms, and support for the ailing Manchu Dynasty; it was clear to successive British governments that British political supremacy in China could not survive the passing of such important financial concessions into foreign hands. In 1898, with the international scramble for concessions at its peak, the leading representatives of British finance in China co-operated fully with the Foreign Office to gain the bulk of Chinese railway contracts and concessions. Such respectable British enterprises as the British and Chinese Corporation and the Pekin Syndicate received active diplomatic support at Peking and the encouragement of the Foreign Office in London. Short of actually negotiating financial contracts on behalf of private companies British diplomacy could do little more to improve the competitive standing of these leading British firms vis-à-vis their foreign rivals.