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

505

CHINA TRADE.

CONFIDENTIAL.

No. 1.

33181

[23 SEP 04]

# SECTION

Sir,

The Marquess of Lansdowne to Baron d'Asbeck.

Foreign Office, September 3, 1904.

I HAVE the honour to acknowledge the receipt of Baron Gericke's note of the 6th ultimo, inquiring what decision His Majesty's Government have come to in view of the action of the Chinese Government with regard to the Whangpoo Conservancy Board.

In reply, I have the honour to inform you that, from telegrams which have been received from His Majesty's Minister at Peking, it appears that the United States' Government are willing to accept the alternative scheme proposed by the Viceroy at Nanking, provided that sufficient guarantees are given for the immediate and satisfactory completion of the works. An intimation to that effect was made by the United States' Minister to the Chinese Government, and the latter, in reply, offered to set aside 600,000 taels annually out of the opium revenue of the Szechuan and Kiang Su provinces for the purpose. The United States' Minister then stated that the Chinese Government must forthwith submit to the foreign Representatives a detailed plan for the speedy execution and future maintenance of the necessary works, the cost being provided for by bonds secured on the revenue offered. If that were at once done, the United States' Government would consent to waive temporarily their right to insist on the terms agreed to in Article VI of the Final Protocol regarding the question, reserving their right to claim compliance with the terms of the original Agreement in case the work were not promptly and satisfactorily carried out.

After careful consideration His Majesty's Government have expressed concurrence in the course suggested by the United States.

I have, &c.

[2156 c-1]

(Signed)

LANSDOWNE.

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