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

AFFAIRS OF CHINA,

CONFIDENTIAL

[36870]

(No. 233.) Sir,

No. 1.

[October 31.]

SECTION

KFC

189

42969

Rs. 22 NOV 06.

Sir Edward Grey to Sir M. Durand,”

Foreign Office, October 31, 1906. THE American Ambassador told me to-day that he had heard from his colleague in Paris of a difficulty in connection with the Taku bar.

It appeared that all the Powers were willing to incur the taxation necessary to carry out the improvement of the bar, with the exception of France aud Belgium. The American Ambassador in Paris thought that the objection of the French might arise from the fact that they desired to have an interest in the matter by securing some of the contracts in connection with the work for Frenchmen. Mr. Whitelaw Reid there- fore asked ine whether I could throw any light upon the question.

I said that I had heard nothing about the matter for some weeks, but we had already spoken to the French Government concerning it. We had been puzzled as to why the scheme should be blocked by the French, as their interests were not really concerned. We had supposed that their attitude might be due to some whim on the part of the French Minister at Peking, and not to the deliberate action of the French Government. We had, therefore, spoken to them on the question, but we had not yet received a reply. I promised to look at the papers again, and see what the last stage

I am, &c.

was.

EDWARD GREY.

(Signed)

* Also to Sir F. Bertie. No. 409.

[2183 kk-1]

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