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

C

# CHINA TRADE

**CONFIDENTIAL**

[29108]

No. 1.

34536

[August 27.]

Rec

SECTION 3. RE 13 SEP OF

Mr. Carnegie to Sir Edward Grey.-(Received August 27.)

(No. 298. Very Confidential.) Sir,

IN the last paragraph of my telegram No. 131 of the 4th instant I ventured to suggest that before the wishes of the French Government were met in regard to granting facilities for French steamers at the British Concessions at Chinkiang and Kiukiang the receipt of my despatch No. 278 of the 25th June regarding the scheme for the improvement of the Taku Bar might be awaited.

Peking, July 10, 1906.

My reasons for making the above suggestion were that I learnt from my American colleague that he had had a conversation with the French Minister, and had asked him why his Legation opposed the project. M. Bapst had at first given vague replies, but on being pressed to formulate his objections had said that he could not approve an arrangement which was practically under British control. Mr. Rockhill pointed out that it was a pure accident that the senior Consul, who has a place on the Board, was an Englishman; it might just as well have been a Frenchman or a Consul of any other nationality. M. Bapst, however, refused to change his opinion.

He came to see me the other day, and mentioned this question of the Taku Bar of his own accord. He said that he objected to the number of the representatives of the Chambers of Commerce and of the Shipping Companies, who would completely overshadow the three members of the Conservancy Board. I replied that as they represented for the most part the people whose money was being expended on the proposed work, it appeared to me a reasonable arrangement, which had, moreover, received the unanimous approval of the residents of all nationalities in Tien-tsin, whom we could very well leave to look after their own interests themselves. I casually remarked that French interests at Tien-tsin were unimportant, but M. Bapst did not pursue the subject, and the conversation turned into other channels.

My French and Belgian colleagues, who both oppose the scheme, have referred it to their respective Governments. If the latter do not take a different view of the matter from that of their Representatives in Peking the project is likely to be indefinitely delayed, unless His Majesty's Government, in conjunction with, I venture to suggest, the American, German, and Japanese Governments, whose Representatives here warmly support it, see fit to make representations on the subject to the French and Belgian Governments.

I have, &c.

(Signed) LANCELOT D. CARNEGIE.

[2105 dd---3]

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