(No. 36.)
Sir E. Satow to Sir Edward Grey.--(Received February 28, 7 P.M.)
YOUR telegram No. 37.
Peking, February 28, 1906, 5-13 P.M.
It
Seizure has been subject of correspondence with Wai-wu Pu for two months. It is not yet clear that Fung was real owner of coal at time of mortgage. Fung has made declaration that his partnership with Chow in the coal business was dissolved on 31st December, 1904. Viceroy alleges collusion, and states that impounded account books show that Chow was still largely interested in July 1905. Following a proposal from Prince Ching I telegraphed, on 18th February, a suggestion to Governor of Hong Kong that, in order to investigate ownership, Fung and his witnesses should go to British Consul-General at Canton and be there examined by Consul-General and Representative of the Viceroy.
On 20th February Governor replied as follows :—
"Canton coal.
"Your telegram No. 7.
"I have not yet obtained explanation of discrepancy between Viceroy's statement and Fung's declaration referred to in my telegram of 15th February. When this has been cleared up to my satisfaction I will send to the Consulate-General such Chinese witnesses as will go. But the position of the Bank seems independent of Fung's relations with Chow, and it may be well for you to impress this on the Wai-wu Pu."
In my view real ownership of coal is the first point to be established. I have been informed of Bank's position.
Wai-wu Pu