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

CHINA TRADE.

CONFIDENTIAL.

No. 1.

C. O.

43489

[November 70.] RESP RED 1000.05

592

Sir M. Durand to the Marquess of Lansdowne.—(Received November 20.)

Washington, November 9, 1905.

(No. 166.) My Lord,

I HAVE the honour to transmit to your Lordship herewith an extract from the "Washington Post" of the 4th instaut, giving the substance of an address delivered by the Chinese Minister at the Pittsburg Chamber of Commerce banquet on the 3rd November.

Your Lordship will perceive that Sir Chentung Liang Cheng, while complimenting American politicians upon the efforts made by them to maintain the " open door" for commerce in China, pointed out that the United States had not made the most of their opportunities to develop trade with China, their present commercial situation in that country being less satisfactory than in former days. Sir Chentung Liang demonstrated that this falling off in commercial activity was uot unlikely due to the fact that, whereas Chinese students, merchants, and travellers are made welcome in all European countries, it has seemed good to the United States for several years past to adopt a different policy. The result has been that Chinese of the class desired shun American shores, and not unnaturally return from travels to Europe imbued with a belief in the superiority of European methods and institutions as compared with those of the United States.

The Minister disclaimed all intention of wishing to criticize the attitude adopted by the United States' Government. He said that he merely took the opportunity to point out that Europe in this way wins an advance agent, whereas America turns away a possible purchaser. After making this rather telling point, Sir Chentung expressed satisfaction at Mr. Roosevelt's announcement that a change of policy in this respect was impending of a nature to secure a 'square deal" for the

Chinese.

In conclusion, Sir Chentung Liang called the attention of his audience to the vast importance for American trade of China's intention to develop railways.

I have, &c. (Signed)

H. M. DURAND.

Inclosure in No. 1.

Extract from the "Washington Post" of November 4, 1905.

SIR CHENTUNG LIANG CHENG, after complimenting the city and his hosts, referring to historic friendly relations of the United States and China, and eulogizing the work of the late Secretary of State, John Hay, for the 'open-door" policy, said, in part:-

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"I can hardly say that the American peeple have made the most of their opportunities in China.

"There was a time when the United States occupied a much prouder position in the China trade than it does now. Ships flying the American flag used to be seen at every Treaty port. First went the American flag; then gradually followed one after another the old mercantile establishments that had for years upheld the American name in the Far East. The great house of Russell and Co. was the last to go. The failure of that house was such a heavy blow to the commercial prestige of the United States that the effect of it is still felt at the present day. No serious effort has since been made to recover the ground thus lost.

"There is good reason for this seeming indifference on the part of the Americans to their great opportunities in the Orient. They have been so occupied at home that they have had no time for things abroad. The domestic market has been large enough to engross all their energy and attention. But the industrial expansion of the country seems to have now reached the limit of home consumption. There can be no

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