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[This Document is the Property of His Britannic Majesty's Government.]
[B]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[1241]
No. 1.
200
4801
[January 17 FEL 07
SECTION 5.
(No. 504.) Sir,
Sir J. Jordan to Sir Edward Grey.--(Received January 12.)
Peking, November 29, 1906.
I HAVE the honour to forward to you herewith copies of two despatches which I have received from the Military Attaché to His Majesty's Legation, Nos. 27 and 28,* and reporting on the new Chinese War Office and on the 7th division of the In Chun respectively.
I have, &c.
(Signed)
J. N. JORDAN.
Inclosure in No. 1.
Memorandum by Lieutenant-Colonel Pereira respecting the New War Office (Lu-Chün Pu).
(No. 27. Confidential.)
WITH reference to the recent changes in the organization of the Chinese War Office, I have received the following opinions
Colonel Ting, an enlightened member of the Chinese head-quarter staff, says that under the old regime Tich-liang and Hsit-shih-ch'ang, the former President of the Board of Revenue, the latter President of the Board of Police, were members of the Grand Council. The latter was either friendly to the Viceroy, or, at any rate, neutral, whilst the former was an obstructionist, and Viceroy Yüan, fearing his influence, succeeded in getting him removed from the Council, but his schemes were upset when Pu-t'ing (a Manchu and a man of no great mark, who, however, had some claims to the post as an ex-President of the Board of Revenue at Mukden) was appointed President of the Board of Revenue, but without a seat in the Grand Council.
The Board of Revenue receives and distributes the greater part of the pay of the Lu Chun, but if the President is not a member of the Grand Council, he loses the authority of that body to force Viceroys and Governors to provide provincial contributions.
Each division of the Lu Chun costs about a million taels (say 150,0004) annually. The Viceroy pays for the whole of the 2nd Division, and perhaps part of the 4th Division, but for the other divisions the President of the Board of Revenue, through the authority of the Grand Council, receives the annual provincial contributions and other sources of income for the army, which altogether amount to 5 million taels, and hands this sum over to the Tien-ping Ch'u. The Paymaster- General of that body had charge of the money and distributed it according to monthly requirements to the Tu-lien Ch'u. The amount they paid out in this way annually was 44 million taels, viz., for the 1st, 3rd, 4th (in whole or part F) 6th and half of the 5th Division (the other half cost of this division is paid for by the Province of Shantung).
These 5 millions were obtained as follows: Roughly half came from profits on the mints or other sources, and half by contributions levied on the provinces, in unequal shares. The Province of Chihli, for example, being a poor province, only contributes half-a-million taels. The balance of half-a-million taels, over in the hands of the Lien-ping Ch'u, was deposited in their name in various banks (foreign and Chinese), to be kept for emergencies and to provide a fund to pay for outside expenses, such as maneuvres, &c. This reserve fund now amounts to 3 million taels.
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