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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[33671]

No. 1.

102

[October 6.]

SECTION II

C

47844

(No. 341.) Sir,

Mr. Carnegie to Sir Edward Grey.—(Received October 6.)

Peking, August 12, 1906.

I HAVE the honour to report that I communicated copies of Sir E. Satow's despatch No. 67 of the 17th February and of your despatch No. 160 of the 9th May last, on the subject of proposed additions to the Land Regulations of British Concessions at certain Treaty ports with the object of conferring on His Majesty's Consular officers powers which would in certain cases enable them to exercise some control over British Municipal Councils, to the Judge of His Majesty's Supreme Court, and requested him to draft a Regulation on the lines indicated in your above-mentioned despatch.

I have the honour to transmit herewith copy of a despatch which I have received from the Judge, inclosing the draft of the proposed King's Regulation. Sir H. de Sausmarez had already sent me a rough draft in a private letter, in which he asked me for additional information on certain points. At the end of clause 1, section 2, he had inserted the words, "with whom the final decision in such matters shall lie" after the word "Minister." Although this wording is in accordance with the terms of your despatch, I ventured to suggest in my reply to the Judge that the Minister's veto or decision might be made only provisionally binding, as in the case of Land and other Regulations affecting British subjects in China, and that the final decision should rest with His Majesty's Secretary of State. Sir H. de Sausmarez, though he does not altogether agree with my views, has accordingly inserted section 3 in clause 1, which embodies the powers of the Minister, who is left free to act as he thinks best in accordance with the circumstances of each case, while the Council meanwhile are bound by the veto of the Consul.

I have, &c.

(Signed)

LANCELOT D. CARNEGIE,

Sir,

Inclosure 1 in No. 1.

Sir H. de Sausmarez to Mr. Carnegie,

Wei-hai Wei, August 7, 1906.

I HAVE the honour to inclose herewith a draft of the proposed King's Regulation giving power to Consuls over the action of British Municipal Councils in certain circumstances.

The first clause of the Regulation provides the machinery for interference by the Consul when necessary. It is substantially the same as the first draft sent to you, though I have somewhat amplified it, and added provisos that the Consul shall always report his action, and that, pending a final decision, his veto shall stand.

I have altered the words, "with whom the final decision in such matters shall rest," as I understand from your private letter that you think the final decision should rest with the Secretary of State, and that the Minister's veto, as the Consul's, should be suspensive. I cannot help feeling that this course would present difficulties, as in the case of a veto immediate action is often necessary, especially if you disapprove of the veto. I have now embodied the Minister's powers in a separate paragraph, and, as it stands, it will leave you free to act at once or to refer the matter home, as the circumstances demand. Moreover, the Act is a purely executive one, and should, I think, at least ostensibly, proceed from His Majesty's Representative in China, and not from the Secretary of State.

Clause 2 I have inserted, as it is a requirement in Sir Ernest Satow's despatch, though not touched upon in Sir Edward Grey's.

Clause 3 is, I think, the best way of applying the Regulation to existing Councils; a definite enactment is required, and this form is less open to doubt than a preamble would be.

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