2
These constitute an imperium in imperio in various parts of China, which must naturally be regarded with jealousy by the Chinese. The rights of these Settlements have been acquired partly by Treaty and partly by practice, and there has been a tendency for these rights to increase. It will not be possible to make any further encroachments upon Chinese jurisdiction, and it will be desirable gradually to define existing rights in Agreements with China, and to impress upon British municipalities that the exercise of their rights must be kept within the limits so defined.
To secure this it will be necessary that the British Settlements should be kept, through the Consuls, in close touch with the Legation, so that any tendency to exceed their rights may be checked and controlled. Unless this is done we shall again be liable to incidents such as that which recently occurred at Shanghae, and which, if repeated often, might lead to such friction and resentment as would exercise a very adverse influence upon British trade.
As regards the municipalities established in the exclusively British concessions that exist at certain of the ports, this control ought not to present any difficulties. The case of the native constable in the employ of the Tien-tsin Municipality, who was handed over to the Chinese authorities for trial and punishment in January of the present year, however, suggested that if the advice and authority of His Majesty's Consuls were disregarded, it might become necessary to add to the Municipal Regula- tions a clause conferring adequate legal powers of control upon the Minister.
The case of Shanghae is altogether different. The Land Regulations of the "International Settlement," promulgated in 1869, derive their validity from the Minute drawn up by the Ministers of the Powers then diplomatically represented in China, and from the tacit acceptance of the Powers that have concluded Commercial Treaties with China since that date. The Municipal Council established by those Regulations is not an autonomous body, but is bound to defer to the advice and authority of the Consuls of all those Powers, tendered in accordance with the instructions they may receive from their official superiors. In 1903, however, the Municipal Council, to mention one instance, went so far as to disregard the ruling of the Consuls with respect to the stationing of a municipal policeman in the Mixed Court to see that sentences on Chinese prisoners were duly carried out.
Should the Council continue to manifest a tendency to exceed the powers conferred on them by the Land Regulations and to disregard the officially intimated opinion of the Consuls, the obvious remedy would lie in such a modification of the Regulations as would place the Council under the direct control of the Consular Body,
It may be anticipated that if such a modification were proposed, advantage would be taken of the opportunity to raise the question of revising the electoral franchise in such a manner as to insure the proportional representation on the Council of the different nationalities which go to make up the foreign population of Shanghae, and the present predominance of the British element in the Council, to which we understand much importance is attached by leading British residents, would run the risk of being greatly diminished.
These considerations should, when occasion requires it, be confidentially communi- cated by His Majesty's Consul-General to the Chairman for the information and guidance of the British majority of the Council; and the latter should be informed that if they do not defer to the prudent and wise counsels which are given to them, it will become impossible for His Majesty's Government to support them in claims to the exercise of functions not conferred by the Land Regulations, or to resist a general demand for the revision of the Regulations in the sense above indicated. And it will be the duty of His Majesty's Consul-General at all times firmly to discourage and repress such excessive claims, and to endeavour to maintain the status quo.
As yet there are few, if any, signs that British subjects in the Settlements are prepared to admit the need for any change in policy, or for increased care and restraint in the assertion of their rights as against the Chinese authorities. It will require much tact, as well as firmness, to deal with these matters; on the one hand, to impress on the Chinese that existing rights in foreign Settlements must be definitely recognized and admitted, and, on the other hand, to impress on British subjects that these rights must be made as little irksome and offensive to the Chinese authorities as possible.
But I am confident that some such policy is the one which offers the best prospect of success, and its results, if it is judiciously applied, and the logic of facts will in the long ran support it and commend it to the British communities, will further British trade, and tend to maintain British influence in China.
This Document is the Property of His Britannic Majesty's Government.
AFFAIRS OF CHINA.
CONFIDENTIAL.
[29214]
(No. 302.) Sir,
No. 1.
Sir Edward Grey to Mr. Carnegie.
743
[September 3.]
SECTION 1 C O.
38281
KECK
- 17 00) 06
Foreign Office, September 3, 1906. WITH reference to your telegram No. 160 of the 30th August and to previous correspondence on the "Sainam "piracy case, I transmit to you herewith copy of a letter which I have received from the Hong Kong General Chamber of Commerce, making certain suggestions with regard to the policing of the waterways in the neighbourhood of Canton.*
You are authorized, in case you see no objection, to suggest to the Chinese Govern- ment that the policing of these waterways should be intrusted to European officers.
I am, &c.
EDWARD GREY.
(Signed)
* Hong Kong General Chamber of Commerce, July 28, 1906.
I am, &c.
(Signed)
EDWARD GREY.
[2146 e-1]