# 1 mazva ul. has been corrected to proper header
# Domestic, C. O. 1417 Red 13 JAN 06
## Taxation of land in New Territory
on das subjec has been corrected to proper sentence
It was even stated in the papers that Shêng, who had negotiated the Shanghae-Nanking Railway Final Agreement, was advocating its cancellation and had subscribed a sum of money for that object. No particular damage had been done, because the agitation had so far not been taken seriously; but if it be known that the Central Government, instead of telling the provinces that engagements must be kept, was supporting the popular demands for abrogation, effects must be rapid and far-reaching,
His Excellency was aware of this danger, and also allowed me to conclude that Wai-wu Pu were under no illusion about it. He was unusually open in condemnation of Shêng (as, indeed, was Na-t'ung), and if this can be taken at ordinary value, it should mean that Sheng's connection with railways cannot continue much longer.
There was some discussion of other matters, mining and commercial, and I found said that I saw nothing in any of the questions at issue which made settlement difficult. In this his Excellency emphatically concurred.
From the utterances of Prince Ching, Na-t'ung, and Ch'u Hung-ch'i, I am in no doubt that the Court, the Grand Council, and the Wai-wu Pu feel themselves unable to take a firm line with the anti-concession agitation, unless the Viceroys and Provincial Governments are in agreement with, and loyally support, the views of the Central Government. On the other hand, the Provincial Governments are becoming more and more apprehensive of popular movements, and disinclined to take action calculated to offend popular opinion. There can be no question that in many of the provinces public feeling against foreign concessions of any sort or nationality is strong, and evidently being fomented by the educated classes, and while this is so it is hopeless, in the existing conditions of Chinese administration, to expect the Provincial Governments to bestir themselves in opposition.
What Prince Ching, Na-t'ung, and Ch'u Hung-ch'i mean is that in the present temper of the provinces the Central Government is really afraid to use pressure, and they want us to wait until the fury of the local clamor against foreign railways and mines has subsided, and the people have had opportunity to consider calmly the facts connected with the concessions they are opposing.
As soon as the Viceroy of Chihli returns from the Hochien-fu manoeuvres I shall seek an opportunity of sounding his Excellency on this subject. His treatment of the American boycott was sharp and effectual, and it may be that his assistance can be enlisted to induce the Central Government to adopt a more decided and justifiable attitude towards this anti-concession movement.
I have, &c.
(Signed)
**ERNEST SATOW**
## leased territory
## reference to status of inhabitants of
merely to state that concession of complaints can be given only when made through proper form of Kong
## (Minutes.)
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I send copy to Nathan (F CPL-15) at once
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