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

[B]

8373

AFFAIRS OF CHINA,

[February 9.]

Rec?

CONFIDENTIAL.

Per 6 MAR 07

SECTION 5.

[4387]

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received February 9, 1907.)

(No. 533.)

Peking, December 21, 1906. Sir,

I HAVE the honour to transmit to you herewith copy of a despatch which I have received from His Majesty's Consul-General at Mukden, reporting on the general situation in that town,

I have, &c. (Signed)

J. N. JORDAN,

Inclosure in No. 1.

(No. 2.) Šír,

Consul-General Fulford to Sir J. Jordan.

Mukden, December 14, 1906. SINCE my arrival in Mukden on the 27th ultimo, I have had two interviews with the Tartar General and two with the Taotai superintending the Board of Foreign Affairs, and have had conversations with my colleagues and with all the British missionaries and residents in Mukden.

the

I am now in a position to give my first impressions of the situation in this town. The attitude of the Chinese officials strikes me as one of expectancy. Until the termination of the Japanese military occupation, they feel that their bands are tied in many respects. Although the Japanese Administration has been withdrawn, and the government of the town has completely reverted to the Chinese, the Japanese military authorities still retain means of fettering their action. The railways on all four sides of the town-to the south, to Port Arthur and Dalny; to the north, to Kuan Ch'engtzu; to the south-east, to Antung; and to the west, to Hsin Min Tun-are in their hands, and military exigencies can be pleaded for any lack of facilities afforded to any but Japanese. A consequence of this is that no large Government contract in Mukden, in way of road-making or building, can be carried out except by Japanese. Four miles of roads in the city are being macadamized. These roads are the main arteries of the town. The walled city is a mile square, and these roads run two from north to south, and two from east to west. The contract for this work has fallen to Japanese for a sum of about 60,000L, say 15,000 a mile. The road from the city to the railway station, about 2 miles in length, is being treated in a similar way, and a similar contract has be made with Japanese for the undertaking. Mukden comprises not only the brick- walled city, but the suburbs around this central inclosure, confined by a circular mud wall 13 miles in circumference. The population of this town is estimated at 250,000.

In addition to this means of influence the Japanese military authorities retain possession of many buildings in the town, some Government and some private, which they seized during their occupation, as having been in the possession of the Russians. Applications by the Tartar General for their rendition are simply ignored. There is a numerous body of Japanese troops at the railway station, and rumours are sometimes prevalent that some of them are to be stationed again in the town. A few are left in charge of the various buildings,

The Japanese Consul-General, having some 2,000 Japanese civilians living in the town under his jurisdiction, has a small police force under his control. They permeate the town against the wishes of the Chinese authorities, but any remonstrances are met with the plea of necessity of keeping order amongst the Japanese population.

The payment of city octroi, which is enforced on the Chinese under the name of "consumption tax," cannot be pressed on the Japanese, as the Japanese authorities can reply to any request for its levy by the statement that the military occupation still continues, and that the imports of the Japanese are military supplies or necessaries,

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