This Document is the Property of His Britannic Majesty's Government.
396
AFFAIRS OF CHINA.
CONFIDENTIAL.
[August 11.]
SECTION
1. c.6.
46853
"REC
[27419]
(No. 145.)
(Telegraphic.) P.
No. 1.
Sir Edward Grey to Mr. Carnegie,
PROPOSED Chinese custom-house at Dalny.
Per 20 DEC 066
Foreign Office, August 11, 1906.
I have been informed by the Japanese Chargé d'Affaires, Count Mutsu, that his Government have no objection in principle to one. No steps are, however, being taken by the Chinese Government to restrict the duty-free influx into Manchuria of goods of Russian origin, since on the northern border there are no Chinese customs, with the result that Russian goods are entering by the Eastern Chinese Railway duty-free; and there is no doubt that in a similar manner Chinese goods are entering Russian territory by the same route.
If the facts are as stated, most-favoured-nation treatment, to which British goods entering by Newchwang are entitled, is not accorded them.
The Japanese Chargé d'Affaires states that hitherto the Eastern Chinese Railway, which is the artery of trade in Manchuria, was Russia's exclusive property. Treaty between China and Russia in regard to the line explicitly provided for the Customs Tariff of duties to be levied on imports into Manchuria over that line from the southern as well as the northern borders. The southern portion of the line, as a result of the war, now belongs to the Japanese Government, and they expect that treatment accorded to the Russian northern line should also be accorded by the Chinese Government to them. The Japanese railway in the south will be handicapped with the establishment of a custom-house at Dalny only, while Northern Manchuria is left without one.
On the 1st September Dalny will be made a free port.
While wishing to carry out the terms of the Eastern Chinese Railway Treaty, the Japanese Government believe that its provisions should be carried out by the northern and southern lines similarly. The Japanese Government will consent to the establishment of a custom-house at Dalny if the Chinese Government would establish her customs simultaneously in Northern Manchuria as well as in the south, and they desire His Majesty's Government to recommend the Chinese Government in this sense.
I request that you will do so.
The Japanese Government have approached the United States' Government with a similar request.
This telegram should be repeated to Tôkið.
[2102 -1]