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cancelled. The despatch states that Thotai's deeds will be issued when land regulations have been arranged with me based on those in force at Hankow.
On the morning of the 20th instant another meeting took place, but the officials had little to add to their former remarks. On this occasion, however, they attempted to define the Treaty port limits of Changsha as being the portion outside the west and north walls and the Island of Shui Lu Chou. I refused to admit any such limitation of the term "Treaty port." As to the postponement of the right to trade within the city, the officials begged that some indefinite phrase might be inserted in the Proclamation, such as, "until the two peoples are on more intimate terins.'
I said that no such vague statement would be permitted, and that any modification of the six conditions was unlikely. When I asked how they could agree to No. 2 and yet object to Nos. 1 and 3, they said that Article XI of the Treaty of Tien-tsin was sufficient authority for them to repeal the objectionable Proclamations, whereas the instructions of the Wai-ru Pu obliged them to refuse full assent to Nos. 1 and 3. They admitted that the English text of the Treaties was clear, but argued that in actual practice no British subjects lived and traded within the walled cities at the old established Treaty ports.
With regard to my interview with the Governor on the 2nd instant, I have the honour to state that on that occasion the proposal of a local settlement of these questions was made by the Governor, and the general remarks made by me could not lave justified the sending of a telegram to cut short the negotiations of the Viceroy of Wuclang. I have not seen the text of that telegram, but it would appear that his Excellency Tuan Fang must have deliberately misrepresented my remarks to the Viceroy.
I have, &c.
(Signed)
Inclosure 2 in No. 1.
A. J. FLAHERTY.
This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE,
CONFIDENTIAL.
No. 1.
Foreign Office to China Association.*
[August 24.]
SECTION 2.
Foreign Office, August 24, 1905. Sir,
WITH reference to your letter of the 10th instant, respecting the need for the reform of the currency in China, I am directed by the Marquess of Lansdowne to inform you that a copy of your letter on the subject has been forwarded to His Majesty's Minister at Peking, who has been instructed at the same time to remind the Chinese Government of the undertaking given by them in Article II of the Mackay Treaty of 1902, and to urge that they should carry out their obligations by instituting the coinage of a silver dollar of uniform weight and fineness.
Sir E. Satow has also been requested to bring to the notice of the Chinese authorities the proceedings of the provincial mints to which attention is called in your letter under reply.
I am, &c.
(Signed)
E. GORST.
Also to Hong Kong and Shanghae Bank, and Manchester, Liverpool, and Glasgow Chambers of Commerce, mutatis mutandis.
(Translation.)
Your Excellency,
Prince Ch'ing to Sir E. Satow.
Kuong Hsü, 31st year, 6th moon, 4th day
(July 6, 1905).
ON the 1st July I had the honour to receive your Excellency's note stating that His Majesty's Government were unable to consent to the proposal of the Governor of Human to restrict the residence of foreigners to a particular plot of ground outside the city walls of Changsha, &c., &c.
The satisfactory course in regard to the opening of Changsha is to reconcile trade interests with local feeling. The Governor of Human bas frequently informed the Wai-wu Pu by telegraph of the state of affairs at Changsha, and has requested me to approach your Excellency on the subject. His Excellency cannot but desire to gauge the situation accurately and to arrange matters without haste; and when both sides are on good terms there will be no difficulty in bringing the (opening of the port) into gradual operation.
The Wai-wu Pu also telegraphed to the Governor of Human some time ago directing him to discuss matters amicably with the Corisul and settle a plan of action on the spot, in order to prevent matters coming to a deadlock and to preserve friendly relations. A telegram has now been received from the Governor to the effect that he is coming to an arrangement with the Consul at Changsha.
The Governor has been asked by telegraph to settle the questions satisfactorily. and your Excellency is requested to instruct the Consul at Changsha to discuss it in a friendly spirit with his Excellency.
I avail, &c.
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