This Document is the Property of His Britannic Majesty's Government.

D.

CHINA TRADE.

CONFIDENTIAL.

P 28859

[November 9.]

Hm 3 £504 SECTION 1.

No. 1.

Consul-General Scott to the Marquess of Lansdowne,-(Received November 9.)

Canton, October 6, 1903.

(No. 35.) My Lord,

I HAVE the honour to inclose herewith copy of my despatch No. 39 of the 5th instant to His Majesty's Minister in Peking, covering copies of my correspondence with his Excellency the Viceroy, relative to the opening of Kongmoon and certain ports of call on the West River, as also to the removal of the barriers on the Canton River and the improvement of the harbour of Canton, as stipulated in Articles III and V of the Mackay Treaty.

I have, &c. (Signed) JAMES SCOTT.

Inclosure 1 in No. 1.

(No. 39.) Sir,

Consul-General Scott to Sir E. Satow.

Canton, October 5, 1903.

I HAVE the honour to acknowledge receipt of your despatch No. 23 of the 31st August last, instructing me to bring before the Canton authorities their obligations with respect to Articles III and V of the Commercial Treaty of Shanghae.

I now beg to inclose copy of my correspondence with the Viceroy, from which it will be seen that he has called upon the Hoppo and the Commissioner of Customs to have steps taken to give effect to these provisions.

During a personal interview with the Commissioner of Customs, I recently drew his attention to this matter, and more particularly to the early opening of the passenger and cargo stations on the West River provided for by the Treaty, in addition to those now open, as also the opening of Kongmoon. His reply was that in the absence of instructions from the Inspector-General direct from Peking, it was impossible for him to initiate any action, and that he had communicated with the Viceroy accordingly.

In connection with the proposed removal of the barriers, the Chinese revenue cruiser "Fei-Hoo" has been engaged for some time past in making a detailed survey; and I am informed from reliable sources that the removal of the three obstructions along what is known as the Back Reach, which is the principal approach to the harbour for all deep-draft steamers, need not be attended with any difficulty or delay whatever. In respect of two of the barriers, the material recovered-wood and iron-will more than compensate for the cost of removal. As for what is known as the "Tai Shek," or stone barrier, which is considered the chief obstruction in the river, the difficulties of removal are by no means so serious as originally anticipated. The obstruction is artificial, composed of big rough boulders, wedged together and covered by sand, which a few charges of dynamite could easily displace. The lifting of the stones may require some time, but native divers and appliances will be fully equal to the task.

As regards the question of the removal of the barriers, the present Viceroy appears inclined to raise difficulties. He alleges that the feeling of the people and gentry demand their retention for the better security of the city of Canton. I have caused, however, intimation to be made to the Viceroy that his views in this respect are entirely contrary to those of his predecessors, Tao Mo and Tak Show, who, when first approached on the matter, expressed not only their readiness to have the barriers removed, but added that they had early meditated such removal at their own instance in the interest of the trade of the port.

I am aware that the previous Commissioner of Customs, Mr. Morgan, did entertain the idea that the cost of the removal of the barriers ought to be paid for by the merchants and shipping of the port, more especially in respect of the barrier on the

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