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No. 3,

Sir C. MacDonald to the Marquess of Salisbury.—(Received June 11.)

No. 80. Confidential.) y Lord,

590

Peking, April 30, 1900,

I HAVE the honour to inclose herewith, for your Lordship's information, copy of

a despatch from Her Majesty's Consul at Canton respecting French attempts to establish a position on the West River.

I have, &c.

(Signed) CLAUDE M. MACDONALD,

Inclosure in No. 3.

Consul Scott to Sir C. MacDonald.

(No. 9. Confidential.) *Sir,

Canton, March 3, 1900. I HAVE the honour to report that Mr. J. F. Schoenicke, the Commissioner of Customs here, was yesterday good enough to give me the following information.

Some days ago the French Consul, Mr. Charles Hardouin, sent him a series of questions of a minute character respecting the West River and Inland Waters Regula- tions. These were all answered with as much accuracy as possible. A few days subse- quently a Mr. Sculfort, who was one of the members of the Lyons Commercial Mission and with whom Mr. Schoenicke had some slight previous acquaintance, arrived in Canton, and from him Mr. Schoenicke learned that the French Government had ordered in England two river gun-boats, probably of the type of Her Majesty's ship "Sandpiper," and that in order to have an excuse for putting these gun-boats on the river (Mr. Schoenicke said "to prevent the river becoming British," though I did not gather that Mr. Sculfort actually used these words), the French Government had put pressure on him to run steamers from Canton to Kongmoon and Wuchow under the French flag, and to induce him to do this had consented to pay a large subsidy.

Mr. Sculfort has already purchased or is in treaty for two Chinese-owned launches here, and in a short time this new departure will be put on foot. Mr. Scalfort seemed perfectly to admit that the enterprise is purely political, as indeed it is very evident is the case.

I learned too that in company with Mr. Hardouin and M. Guillien, the French Vice-Consul, Mr. Sculfort had a two hours' interview with the Viceroy. The purpose of the interview, or at any rate the chief topic of conversation, was a proposal that a stone bund should be built under French auspices along the bank of the river from Shamien downwards opposite the city. In reply to this proposal, his Excellency said that Chinese merchants had already made application on the subject, and that the suggestion of French assistance could not be entertained.

A few days ago Mr. Hardouin went to Hong Kong to meet the French Minister, who will shortly visit Canton.

For some time there have been rumours that two gan-boats and six large lighters were being built in Hong Kong for "the French," but it was not said whether on public or private account.

I may

add that Mr. Sculfort is reported to be a cultivated, refined gentleman of much energy and ability.

The questions as to the West River and Inland Waters Regulations were drawn up by the French Foreign Office.

I have, &c.

(Signed) B. C. GEORGE SCOTT.

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