3
Extracts from the above-mentioned Letter of December 5 from the British Consul.
"I have received your private letter of the 1st instant, asking me to indicate how you should proceed in order to open mines in property owned by you in this province. The question of mining enterprises by foreigners in China was dealt with by a Circular from Legation to the Consuls, dated the 18th July, 1899, which is published in China Blue Book, No. 1, 1900, p. 286. In this Circular, which was approved by the Foreign Office, it was pointed out that foreigners had still no Treaty right to buy land other than for missionary purposes, or to work mines in the interior of China, but that the Regulations issued by the Mining Board served to show the conditions under which the Chinese Government was prepared to allow foreign skill and capital to be employed in Chinese mining operations.
"These Regulations had already been protested against by His Majesty's Minister; others were subsequently issued which were also unsatisfactory. As you are aware, the British and American Commercial Treaties of 1902 and 1903 stipulated that China should recast her Mining Rules, so as to offer no impediment to the attraction of foreign capital, and that foreigners should be permitted to carry on mining operations in compliance with these Rules. The Rules, as recast, have not been officially communicated to the Consulates, very possibly because, as reported by His Majesty's Minister, not fulfilling the terms of the Treaty. But the Rules have been published, and, such as they are, I am afraid that until they are altered any foreigner wishing to negotiate for Mining Concessions will have to be guided by them if he is to negotiate with any prospect of success. I can find nothing in the new Treaties which coufers, as you seem to suggest, a right to open mines where they please irrespective of the regulations and conditions which may be imposed by the Chinese Government. Apart, however, from the question of Treaty rights, I fully recognize the desirability of encouraging British enterprise in assisting the development of mining resources in this province, and I shall, of course, be glad to give you such general assistance and support as is in my power in any negotiations you may undertake for a Mining Concession."
[N.B.-The Consulate referred to is Wuhu.]
Inclosure 4 in No. 1.
(B.)-Re Transit Passes.
ON the 19th April, 1904, Messrs. Brunner, Mond, and Co. (Limited) shipped a consigument of their goods from Chinkiang up the Grand Canal under transit pass No. 693, A Chinese employé of the firm was sent with the goods to destination. Payments were demanded at eight li-kin stations on the way. A statement of these charges was sent to the British Consul at Chinkiang under date the 12th May, 1904, and later a claim was rendered for 77,952 cash.
The Taotai, in reply to the Consul's despatch, raised frivolous objections, professing not to know the locality of certain li-kin stations stamped on the transit pass, and further demanding that the Chinese employés of the British firm should be produced before him. This latter request was, of course, refused, since it would be clearly understood that such intimidation would be brought to bear as to interfere with the firm's future business. The British Consul, writing under date the 16th May, 1904, stated in the following words that he was referring the case to the Viceroy :--
"I beg to acknowledge the receipt of your letters of the 12th and 13th instant regarding illegal charges levied on a shipment of your soda ash at barriers on the Grand Canal.
"I have recently been approached by British merchants at Chinkiang on the subject of these.illegal charges, which have latterly increased to an intolerable extent, and I am now addressing the Viceroy on the whole question. The evidence supplied in your Jetter under acknowledgment will be added to that already in my possession."
As no settlement of the case was made, the attention of the Consul was again called to the matter, and under date the 7th December, 1904, he replied as follows:----
Q
408
As you
"I have sent in to the Taotai your claims for refund of li-kin exactions. put in no receipts (except a native tonnage ducs certificate, which is possibly a legiti mate charge), the barriers implicated may deny the whole thing.
"You should not lose sight of the fact that these squeezes procure complete immunity from examination and the consequent delays, and it is general knowledge that every one of these transit pass boats carries smuggled goods. If you do not wish to pay anything, you might try the other expedient of declining and having your boats properly searched in their turn. Then, if they are still not allowed to proceed, your men should report here from the first barrier where this occurs and a claim for demurrage could be made."
The Consul has again recently been approached with a view to the settlement of the case, but no steps would seem to have been taken to bring the matter to a conclusion.
Inclosure 5 in No 1.
(C.)-Case of Brunner, Mond, and Co. (Limited), at Soschow.
ON the 13th January, 1905, Messrs. Brunner, Mood, and Co. (Limited) shipped to Soocbow, an open port near Shanghae, a consignment of their goods through a native shipping hong. The goods were landed at the open port of Soochow, and the regular import duty of 5 per cent, was paid and the goods taken into the godown of the shipping hong. The Li-kin authorities immediately demanded the payment of 11 per cent. li-kin. The matter was referred to the British Consul-General at Shanghae, who communicated with the native authorities at Soochow, with the result that the charge was reduced to one-half. These goods had been sold to a Chinese firm in the city of Soochow and were the property of Messrs. Brunner, Mond, and Co. (Limited) until delivered to that firm. The native shipping hong was continually pressed for payment, but, acting under instructions from Messrs. Brunner, Mond, and Co. (Limited), declined to pay the tax. The heads of the native firm were thereupon arrested and imprisoned, after having been fined. The British Consul-General secured the release of these men, but was unable to secure the free passage of the goods to the buyer. The foreign firm's General Manager in China then went to Soochow, with the Consul-General's consent, with the endeavour to arrange matters.
The head of the Li-kin Office in Soochow arranged for an interview with this gentleman, and then declined to see him when he put in an appearance at his yâmen. A native cargo-boat was then hired, and the goods loaded into the same to be carried into the native buyer's godown. The Li-kin authorities threatened the buyer if he took delivery of the goods to such an extent that this firm declined to take delivery of the goods at all. The shipping hong, under pressure from the authorities, also declined to receive the goods back into their godown. The native boatman also demanded that The Li-kin authorities also notified the goods should be taken from his boat at once.
the British firm that they had appointed detectives to watch the goods, and any person taking delivery of same would be make to pay all charges. The British firm then hired a disused building, placing upon the same a notice in Chinese stating that this was Messrs. Brunner, Mond, and Co.'s godown, and the goods were stored therein. They remain there at the present moment, it being utterly impossible to dispose of a single package.
A claim for indemnity has been lodged with the British Consul-General in Shanghae. Since the above action was taken the native authorities have demanded payment of all charges on these goods from the native shipping long, and threaten again to imprison them and to close up their business. The British Consul-General has again intervened in their behalf.
The British Consul-General, Sir Pelham Warren, K.C.M.G., bas rendered every assistance, but up to date of writing, the 7th June, the indemnity has not been paid, the question has not been settled, the goods are lying in Soochow, and no native dares to buy a single package.
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