CHINA TRADE.

CONFIDENTIAL.

27476]

(No. 287.) Sir,

No. 1.

Sir Edward Grey to Mr. Carnegie.

[August 24.]

685

35589

REC Ref 27 SEP 06

Foreign Office, August 24, 1906.

I HAVE received your despatch No. 278 of the 25th June last on the subject of the scheme for improving the navigation of the Hai Ho River.

On the receipt of your telegram No. 131 of the 4th July, in which you suggested that, before meeting the French Government in the matter of the use by French steamers of the hulks moored off the British Concessions at Kiukiang and Chinkiang, I should await the receipt of your above-mentioned despatch, I mentioned to the French Ambassador the fact that a report had reached you to the effect that the French Government were opposing the scheme for the improvement of the Taku Bar on account of its British character. M. Cambon could not believe the report to be correct, but promised to make inquiries.

On the 1st August his Excellency made a communication, inclosing a Memorandum setting out the principal objections of the French authorities to the scheme in question. I inclose copies of the two documents.* M. Cambon was informed that a despatch was on the way from Peking dealing with the whole question, and that on its receipt his Excellency's communication would be considered.

Your despatch No. 278 does not, however, enable me to answer the various points raised in the Memorandum, and I should be glad to be furnished with your observations on these two documents, as well as with the necessary material for replying categorically to the objections of the French Government to the scheme.

A separate despatch will be addressed to you in due course in regard to the King's Regulation to sanction Article 7 B of the Tien-tsin Land Regulations.

I am, &c.

(Signed)

* M. Cambon, August 1, 1906.

[2105 aa--1]

EDWARD GREY.

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