2

Portuguese control, with the exception of a period of about twenty years, when it was under the charge of the French Government.

I have, &c. (Signed)

E. C. WERNER,

Inclosure 2 in No. 1.

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

SOUTH-WEST CHINA,

CONFIDENTIAL.

17138

[April 19.],

MAY

SECTION I

233

No. 1.)

(No. 4. Confidential.) Sir,

Consul Werner to Sir E. Satow.

Kiungchow, February 2, 1904. In continuation of my No. 2 of the 23rd instant, I have the honour to report that the two launches which went to take soundings at Pu Chien have now returned and the charts made forwarded to the Governor-General of Indo-China.

The plan to change the port of call for steamers from Hoihow to Pu Chien is supported by M. Marty, the owner of half the steamers which visit the port, though it is discountenanced by his local agent here, who foresees difficulties in diverting a long-established trade and in transplanting a growing foreign Settlement, and is in favour of attempts being made either to dredge the harbour at Hoihow or to build a pier and breakwater.

The transfer of the foreign Settlement, by diverting the steamers and trade from Hoihow to Pu Chien, is part of a general scheme of the French Government to tap the Island of Hainan by running steamers from Kuang Chou Wan to Pu Chien in the extreme north, and from Haiphong to Yu Lin Chiang (Yu Lin Kang) in the extreme south. This scheme includes the building of a railway from P'u Chien to Kiungchow, Ting An (Deng An), and Lung Tang Hsu, the largest market-towns in the interior, and so across the island to Yu Lin Chiang. It is possible that, owing to the mountainous nature of the interior, mostly unsurveyed, this line might have to follow a course nearer to the east coast than a straight line joining the two harbours.

As regards these two harbours—the only two good ones on the coast—Yu Lin Chiang, which is supposed to have been formed by volcanic agency, is small but very deep, and could not admit a large number of steamers at once. Pu Chien Harbour is large and also deep, and by the construction of a pier ocean steamers could go alongside and discharge cargo, thus avoiding the great delay which takes place at Hoihow, where all steamers lie at least 2 miles out, and when the weather is at all rough are delayed from two to four days before they can discharge or load their cargoes. The ground around P'u Chien is hilly, and would probably prove a healthy site for a foreign Settlement.

I am informed that the proposed railway would not run to Hoihow. This would of course (if the steamers all called at P'u Ch'ien) leave Hoihow entirely isolated, and the reason for the residence of foreigners here, with the exception of missionaries, would be taken away.

The opening of the port by Treaty between the British and Chinese Governments, and the establishment of a British Consulate here for twenty-eight years, would be ignored, the French Government considering that British commercial interests at Hoihow are practically non-existent. Even if a branch railway were run from Kiungchow to Hoihow, a railway journey about twenty miles from Hoihow to P'u Chien, via Kiungchow, could not conveniently be undertaken daily by a resident at Hoihow during the hot weather, which prevails for nine months of the year.

I am further led to believe that when once the ports of Pu Chien and Yu Lin Chiang have been successfully established, claims for the districts surrounding these two places would be made, and with the acquisition of these two "leased territories" and the only two good harbours on the coast, other foreign interests in the island could easily be combated, and the spread of French influence over the remainder of Hainan could be brought about without much fear of successful opposition.

I have the honour to inclose a map, showing the situation of the places named and the line of the proposed railway.

I am forwarding a copy of this despatch to His Majesty's Consul-General at Canton.

(No. 112.)

Sir,

The Marquess of Lansdowne to Sir E. Satow.

Foreign Office, April 19, 1904. I have received your despatch No. 43 of the 3rd February last, and I approve the terms of the note which you addressed to the Chinese Government, informing them of the views and intentions of His Majesty's Government with regard to the Burmah-Yunnan frontier in the region of the Nmaikha River.

I am, &c.

(Signed)

LANSDOWNE.

* Not reproduced.

I have, &c. (Signed)

E. C. WERNER.

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