Athe-time for commencing work under the two first Concessions expired in January, and nothing had been done by the French, thus rendering the Agreements null and void, the Viceroy cancelled them, and if the Chinese Government are strong enough to support his Excellency, all that remains to the French concessionnaire, M. de Marteau, is the Petroleum Agreement, which he is said to be coming back to Szechuan to take up.

Soon after my arrival here I found that Mr. Wilton was in daily communication with the Viceroy's Private Secretary, who, after rejecting the Mining and Petroleum Agreements, handed in by the former, himself produced new draft Agreements. These, of course, required amendment; but amendments to these amendments became so numerous, and the obstruction was so flagrant, that I advised Mr. Wilton to notify the Viceroy that, unless his amendments were accepted, he would leave on the 11th instant, and refer the whole matter to Peking.

This he did; obstruction began to weaken, and after the alteration of a few minor details, both Agreements were arranged and signed on the morning of the 11th instant, and Mr. Wilton left the same day at noon for Chungking. He took with him signed copies of each of the Agreements for transmission to you. I must add that, if these Agreements are ratified in Peking, the balance in favour of British mining rights in Szechuan will be due to the patience, perseverance, and ability which Mr. Wilton has proved himself to possess.

The question whether the Acting Viceroy will remain here is agitating the minds of Chinese and most foreigners in the province, both dreading that his removal will mean a recrudescence of trouble. It is known that his Excellency has been offered, and has refused, the command of the foreign-drilled troops at Peking, and it is hoped that he will be appointed to the substantive post of Viceroy, and thereby continue to maintain that order in Szechuan which the laxity of his predecessor so gravely imperilled, and which a weaker successor might find it difficult to uphold.

I have, &c.

(Signed) ALEX. HOSIE.

Office or Individual.

Foreign

1903

26 Nich

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