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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[3114]

No. 1.

324

[January 28.]

SECTION (3.

C.O.

7655

REC?

(Red 28 FEB 07

(No. 528.) Sir,

Sir J. Jordan to Sir Edward Grey.-(Received January 28, 1907.)

Peking, December 12, 1906.

I MENTIONED in my despatch No. 497 of the 29th November last that a letter from the Chairman of the Shanghae General Chamber of Commerce, in connection with the unfair discrimination that the port of Newchwang suffers from in the matter of customs duties, was to be considered at a meeting of the Diplomatic Body on the following day.

This letter, copy of which I have the honour to inclose herewith, pointed out that while cargo shipped direct from Shanghae to Newchwang had to pay full customs duties, goods going to Newchwang via Dalny entered the Treaty Port duty-free, and the Chamber of Commerce complained of the continuance of an anomaly for which there was no justification. They urged the necessity either of constituting Newchwang a free port or of the immediate establishment of customs control over imports from Dalny into Manchuria.

When this letter was circulated by the doyen the Japanese Minister made a note upon it to the effect that a request was being preferred to the proper quarter to have custom-houses established as soon as possible, not only at Dalny, but also at the northern entrances of the trade routes into Manchuria, and I appended a Minute in which I expressed my agreement with the views advocated by the Chamber of Commerce, and added that the present system constituted an unfair discrimination against an old-established Treaty Port.

These views I reiterated at the meeting, and suggested that we should take collective action with the object of expediting the negotiations which the Wai-wu l'u was understood to be conducting with the Russian and Japanese Ministers on the subject.

The Japanese Minister was of the opinion that the whole question would be shortly settled, while our Russian colleague pointed out that it was not of pressing importance during the winter season.

He explained that the Russian Government had notified the Wai-wu Pu that they agreed to the principle of the establishment of customs stations on the Russo- Manchurian frontier, and only asked to be consulted on points of detail connected with their working.

Finally, it was agreed to send the reply, copy of which is inclosed, to the Shanghae Chamber of Commerce, and to let the Ministers press individually the question upon the attention of the Wai-wu Pu.

This I did once more at an interview on the 11th instant, and I understand that my American, French, German, and Italian colleagues either have already taken, or intend to take, similar action.

The Wai-wu Pu expressed their firm intention of bringing the negotiations to a conclusion before the opening of Newchwang in the spring.

I have, &c.

(Signed) J. N. JORDAN.

Sir,

Inclosure 1 in No. 1.

Shanghae Chamber of Commerce to Doyen of Diplomatic Body.

Shanghae, October 29, 1906. I HAVE the honour to bring to your notice the disabilities under which Newchwang, hitherto regarded as the main artery of Manchurian trade (as it is the natural one), and where European interests, both mercantile and shipping, have long been predominantly established, is labouring.

[2310 ee-)

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