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it working next year. If the Peking Syndicate offers, say, 100 tacls for land or anything else, the Pao Ku Company will offer 200 taels. The people are determined not to allow their resources to be snatched from them. What can the British Government do in this case--send troops or gun-boats? Let the Agent-General ponder over this matter well before deciding that a compromise will not pay in the end. Foreign intercourse is not in these times what it was years ago. The Syndicate's difficulties in Shausi are of long duration. Both sides of the question are known not only to the principal parties concerned, but also to the general public. The newspapers have discussed the matter not a few times. The Chinese Minister in London has been kept informed of each movement in the case, The officials of Shansi know full well that the permit must not be issued, just as the officials of other provinces know that Concessions nade by the Wai-wu Pu must not be carried into effect. Hence their delay in carrying out the orders from the Wai-wu Pu."

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was for the purpose of settling the differences existing between the people of Shansi and the Peking Syndicate. Mr. Brown requested that this statement be put in writing, but Mr. Chien Chib Fen would not consent to do so. Later, Mr. Brown said that this statement was a most important one, which apparently caused Mr. Ch'en much embarrassment.

It was suggested that the document written by Mr. Ch'en Chu Lun should be taken away for careful and leisurely perusal, but Mr. Ch'en, having recovered it from Dr. Gatrell on the pretext of looking through it again, hastily and excitedly removed one sheet, which he at once destroyed, thrusting the fragments into the bosom of his dress. The remainder of the document was accordingly left with him.

MEMORANDUM of an interview between Mr. George Brown, Agent-General of the Peking Syndicate (Limited), and Messrs. Ch'en Chu Lun and Chien Chih Fen, held at the Fo Chao Lou, Tien-tsin, the 10th January, 1907. Dr. Gatrell was also present.

THIS meeting was for the purpose of returning the calls of Messrs. Ch'en, and in fulfilment of the promise made by Mr. Brown on the 7th instant, that he would call and band to Messrs. Ch'en a letter to his Excellency Ting.

Mr. Brown having explained to Messrs. Ch'en the reason for his failure to keep the appointment yesterday, the letter for his Excellency Ting was handed to them, and in addition a copy for their perusal. Messrs. Ch'en both read it through, and then Mr. Chen Chu Lun called attention to the following statement in the letter: "Unfortunately your Excellency's representatives felt themselves unable to arrange this meeting unless the Syndicate abjured in advance all its rights to mine in Shansi under the Agreement of 1898, which bears the Seal of the Tsung-li Yamên and is indorsed by a Decree from the Throne," which statement he objected to as being an inaccurate representation of the views he had set forth at the interviews with Mr. Brown. An attempt was made to recall to Mr. Ch'en's mind the occasions when he gave expression to his inability to arrange the meeting unless Mr. Brown would state that he would not insist upon the permit and the opening of mines, but he would not admit having douc so. He then proceeded to call for writing materials, explaining meanwhile that evidently mistakes in interpreting had been made which, seeing that Mr. Brown could read Chinese, he would rectify by employing his pen in place of his voice. While Mr. Chien Chu Lun was engaged in writing, Mr. Ch'en Chih Fen was asked whether or not both he and Mr. Chien Chu Lun had said that, if Mr. Brown was unwilling to state that he would not insist upon the issue of the permit and the opening of mines, it was useless to talk of arranging a meeting with his Excellency Ting. After a feeble attempt to avoid a direct answer, he admitted that this had been said. Mr. Ch'en Chu Lun wrote seven pages, consisting of a partial résumé of what had taken place at the several interviews, and in which he too admitted having said that a meeting with his Excellency Ting would be useless if Mr. Brown adhered to his demand for the permit and the opening of mines. In this document Mr. Ch'en tried to fix the blame for the failure to arrange the meeting upon Mr. Brown, in that he refused to go to Ping Tan to mect his Excellency Ting. But Mr. Brown held that the telegram stipulating that the meeting should take place at the Wai-wu Pu, Peking, was in his Excellency Ting's hands before they started from Tai Yuan-fu, and he reminded Messrs. Ch'en that his Excellency Ting had signified his willingness to meet Mr. Brown at Peking, Tien-tsin, Pingtingchow, or any other place. The Messrs. Chen said that his Excellency Ting had not taken over the duties of Provincial Treasurer when he made this statement. Mr. Brown replied that he had written proof to the contrary. The document written by Mr. Chen Chu Lun wound up by saying that if Mr. Brown would consent to a compromise, his Excellency Ting could render assistance, but not otherwise, and Mr. Brown was asked to take back the letter for correction. This request Mr. Brown did not comply with. "Then," said Mr. Ch'en, "I must suggest that you send it by post; I dare not hand it in to his Excellency." While Mr. Ch'en Chu Lun was writing, Mr. Ch'en Chih Fen was asked whether or not his Excellency Ting was personally interested in Shansi mining affairs. Mr. Chen Chih Fen denied this absolutely, saying that his Excellency Ting was a poor official, whose whole object in proposing a meeting

Inclosure 5 in No. 1.

Mr. G. Brown to Ting Pao Ch'uan.

Peking Syndicate (Limited), Tien-tsin, Your Excellency,

January 8, 1907. I WAS much gratified by the receipt on the 27th ultimo of your Excellency's letter, which was brought by the two gentlemen, Messrs. Ch'en Chu Lun and Ch'en Chih Fen, who had come at your Excellency's bidding to make arrangements for a meeting between us. It would have given me very great pleasure to have the interview for which your Excellency first expressed a wish through Mr. Sowerby, so long ago as the 23rd November, 1906, and subsequently by telegram direct. An open discussion of matters face to face would tend to facilitate a better understanding of the situation, and doubtless your Excellency, in undertaking the attempt to find a solution of the difficulties in Shansi, had some acceptable proposal to put forward that might have proved equally satisfactory to the authorities of the province (on whose bebalf and with whose full mandate your Excellency would, of course, be acting) to the people and to this Syndicate. Moreover, if the meeting could have been arranged by your Excellency to take place at the Wai-wu Pu in Peking under the approving eyes of the Chinese Government and the British Minister, any Agreement arrived at would have been, so to speak, confirmed by the highest official sanction in advance. Unfortunately your Excellency's Representatives felt themselves unable to arrange this meeting unless the Syndicate abjured in advance all its rights to mine in Shansi under the Agreement of 1898, which bears the seal of the Tsung-li Yamên, and is indorsed by a Decree from the Throne. It seems to me that any one who disputes the validity of this title is setting himself up, not so much against the Peking Syndicate as against the Chinese Govern- ment and the Emperor himself, and I cannot but think that your Excellency's deputies, whose intelligence and courtesy I none the less highly appreciated, must in some way bave formed a misconception of your Excellency's views. An official of your Excelleney's high standing and reputation would never imagine that so weighty a document could be lightly set aside. Mr. Ch'en Chu Lun, however, informed me that these were the only terms on which your Excellency would consent to the interview for which your Excellency's first overtures expressed such great anxiety. I regret that conditions of this nature should have rendered your deputies' task abortive, and that they are returning to Taiyuan-fu with so little to show for their long and troublesome journey for which I anticipated a different and a happier result.

I have, &c.

(Signed)

GEORGE BROWN, Agent-General.

Inclosure 6 in No. 1.

Messrs. Ch'en Chu Lun and Ch'en Chih Fen to Mr. G. Brown,

(Translation.) Dear Sir,

[Undated.] WE were much honoured by your visit, and the conversation we had we highly appreciate.

As regards the letter which you requested us to hand to his Excellency Ting, we find that its statements do not wholly accord with what we set forth at the interviews, and in consequence we feel unable to comply with your request, which might result

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