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

C. O.

210.1

# CHINA TRADE.

## CONFIDENTIAL.

No. 1.

250 [May 9.]
19: 14 JUN 04

### SECTION 2.

Sir E. Satow to the Marquess of Lansdowne--(Received May 9.)

(No. 89.) My Lord,

Peking, March 15, 1904. I HAVE the honour to transmit to your Lordship herewith a copy of a despatch which I have received from the British Acting Consul-General at Hankow, forwarding a copy of Regulations issued by the General Mining Syndicate of the Province of Hunan. Mr. Playfair's despatch also contains copies of correspondence which has passed between him and the Governor of the province on the subject of these Regulations, which, by excluding all foreign capital and enterprise from mining operations in Hunan, are contrary to the new British Commercial Treaty.

I have the honour to inclose a copy of a note which I have addressed to the Chinese Government on the subject, and to inform your Lordship that the German Minister has also protested to the Foreign Board, on account of existing German financial interests, while the United States' Minister has informed me that he also intends to protest.

I have, &c.. (Signed)
ERNEST SATOW.

(No. 10.) Sir,

### Inclosure 1 in No. 1.

Acting Consul-General Playfair to Sir E. Satow.

Hankow, February 29, 1904. I HAVE the honour to inclose a copy of certain Regulations, governing mining operations in the Province of Hunan, which were brought to my notice by the German Consul at this port. I wrote on the 4th February to the Governor of Hunan expostulating against those Regulations, by which all foreign capital and all foreign enterprise were to be excluded from any mining operations, as being contrary to the new British Commercial Treaty. On the 14th February the Governor replied that the Regulations were issued by a Syndicate of merchants, who declared that their Regulations were not in contravention of any Treaty. In my answer of the 27th February I pointed out certain paragraphs that were entirely opposed to the latest British Treaty, and notified the Governor that, as the Regulations had not been issued or sanctioned by the Wai-wu Pu, I could not take any notice of them whatever.

I have since been privately informed by the German Consul that he had seen a copy of a despatch from the Governor of Hunan to the Wai-wu Pu which contained a statement that, under these Regulations, he had already prohibited one British subject from prospecting for mines in the province.

I inclose copies of the correspondence referred to above which passed between his Excellency Chao and myself.

I have, &c.
(Signed)
J. M. H. PLAYFAIR.

### Inclosure 2 in No. 1.

Regulations of the General Mining Syndicate of the Province of Hunan.

(Précis of Contents.)

#### Section 1.

PETITION from the Syndicate to the Governor of Hunan requesting him to memorialize the throne and ask for the Imperial sanction for the grant of a monopoly of all the mines in Hunan to the Syndicate.

[1989 1-2]

B

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