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

274

AFFAIRS OF CHINA.

CONFIDENTIAL.

December 20.]

C.0.

SECTION

6412

ler 20 FEB 07

:

[42647]

No. 1.

Hong Kong General Chamber of Commerce to Sir Edward Grey.-(Received December 20.)

Sir,

Hong Kong, November 21, 1906. REFERRING to the letter of the 28th July last, in which the Committee of the Hong Kong General Chamber of Commerce ventured to lay before you their views on the subject of piracy in the provinces of the Two Kwang, and more particularly with reference to the piratical attack on the British Steam-ship "Sainam" in the West River on the 13th idem, I now beg to inform you that we learn through the Secretary of the Hong Kong, Canton and Macao Steam-boat Company (Limited), who act for the joint owners (themselves, the Indo-China Steam Navigation Company (Limited), and China Navigation Company (Limited)), that they have been informed their claim for consequential damages cannot be supported by His Majesty's Government.

The Committee of this Chamber received the news as to the decision of His Majesty's Ministers with very great regret, and in the interests of British trade generally, and the prosperity of this Colony, considered it advisable to at once telegraph protesting against this decision, and requesting that the instructions on the subject issued to His Majesty's Representative in China be suspended pending receipt of our written protest.

That consequential damages have been occasioned to the Steam-boat Companies through this attack cannot be disputed by any one qualified to speak on the subject.

Acting under Treaty rights these British Companies have at great expense opened up and developed a new branch of trade with China, and there is good reason to believe that had such security to life and property which we are entitled to receive from the Imperial Government been maintained, the trade would rapidly have developed and proved highly remunerative to all concerned.

Instead of this the comparative impunity with which such attacks can be made on foreign vessels has not only put a serious check to the trade, but if allowed to pass with the falling of the heads of obscure individuals and the payment of a trifling indemnity will serve as a direct encouragement to the Chinese to continue their obstructive policy.

The matter is not merely one of asking for a just payment of consequential damages to business entailed by this lawlessness, but in fact resolves itself into the question as to whether British property is to receive protection under the British flag.

The strong anti-foreign policy of the late Viceroy "Shum" and the Provincial Treasurer at Canton is unquestionably in a large measure responsible for this and similar outrages. This Chamber has repeatedly in the past expressed the belief that a very little serious energy on the part of the high provincial authorities would result in making the waterways of the delta safe highways for peaceful trade.

Unless His Majesty's Government takes some practical step to show the Imperial Government and the local officials that it is determined to see full protection be accorded to all trading under the British flag, this flouting of our flag will be but a step to further outrages, and will still more increase the difficulty so often and so long complained of, of forcing the Chinese officials to carry out their obligations towards us.

While this Committee considers the claim put forward by the owners of the steam- ship "Sainam" perfectly just and reasonable, we would beg to point out that the Companies concerned are wealthy Corporations, and not seriously in need of the few thousand pounds asked for; it is the principle involved which is of paramount importance, namely, that the Chinese officials must be made to realize their responsibilities, and that should they through their supineness or tacit permission allow outrages to be perpetrated on Britsh subjects they will be held fully accountable, and be forced to make complete reparation for the crimes perpetrated by those they are supposed to hold in check, and whom they could control if they really so desired.

We trust that in view of this expression of opinion based on personal knowledge His Majesty's Government will reconsider its decision, and consent to enforce a claim in itself

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