[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[28231]
C
44802
[August 18.]
SECTION 1,
MEC?
REC 5 DFC OF No. 1.
Mr. Carnegie to Sir Edward Grey.-(Received August 18.)
(No. 154.) (Telegraphic.) P.
Peking, August 18, 1906.
IN accordance with the instructions contained in your telegram No. 145 of the 11th August, I addressed a note to the Chinese Government respecting customs in Manchuria. Representations in the same sense have been made both by my American and Japanese colleagues.
Yesterday I verbally supported this note at the Wai-wu Pu, and was informed that proposals would be made to the Russian Minister when a report was received in regard to the establishment of customs in the north from the Chinese officials in Manchuria, who were being consulted.
Strong doubts as to Japan's good faith in respect to Southern Manchuria were implied by Tong, who was spokesman. The conditions for restoring the administration of Newchwang to the Chinese Government proposed by Japan were such, he stated, that China would prefer to leave the place in her hands if they were insisted upon. What they were, he declined to say. He sharply criticised the manner in which Japan was treating the question of repaying the customs duties which were collected during the military occupation. He said that a balance of nearly 200,000l. was in the hands of Russia, who was ready to hand it over simultaneously with Japan's payment of her collection, but it was now alleged by the latter that expenditure on improvements at Newchwang had absorbed all the money.
[2102 s-1]