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establish themselves, either inside or outside the city, though so far without success. any case, whether their agent resides outside the walls or not, they intend eventually to have a depôt for their goods inside the city.
And this brings up the question of the purchase or the lease of houses or land by foreigners There is little doubt that, pace the Tantai's assurances, every possible obstacle will be placed in the way of British merchants establishing themselves within the city of Changsha. When the Japanese Consul received from the Chinese authorities, simultaneously with me, the despatch of the 13th July (Inclosure No, 3) with reference to Treaty port limits, he asked a Japanese merchant to test the matter by endeavouring to lease a shop inside the city. The native owner was, however, promptly informed by the Constabulary Bureau that it was forbidden to lease houses or land situated inside the city to foreigners.
Endeavours are even made to restrict, as far as possible, the purchase of land by Missionary Societies, although this is largely due to the fear that they will re-sell to foreign merchants. The existence of "complications" is usually invoked as the reason for the opposition; when that pretext fails, the authorities endeavour to procure the insertion on the bill of sale of the clause "to be devoted solely to missionary purposes," or some similar phrase, thereby putting Changsha on a par with a city in the interior. I have, however, declined to agree to this.
If the Missions, whose right to purchase land inside the city has never been contested in principle, meet with so many difficulties, it may readily be imagined what opposition British merchants are likely to encounter, It is pretty generally understood among the people that the gentry would strenuously oppose the transfer of any land inside the city to a foreign merchant, and the result is that many who would otherwise be willing to sell dare not do so. I have suggested to the Manager of the Tobacco Company that his best plan to obtain land inside the city would be to leave the negotiations to a reliable Chinese agent, who, on the land being transferred to him, would immediately make it over to the Company. The latter could then take possession; and when the deeds were sent in to the authorities for scaling, the latter would have some difficulty in finding a reasonable ground for refusing to comply. Mr. Moore proposes to adopt this course, which I consider to be the only feasible one. In most cases the natives absolutely refuse to have any direct dwellings with foreigners wishing to acquire land inside the city, as they appear to be afraid of getting themselves into trouble.
There is one other point. The Japanese Consul at this port has asked me to join him in pressing the local authorities to issue a Proclamation stating that foreigners are entitled to open business establishments and to trade inside the city; but I explained to him that I wished first to report on the subject to you and to obtain your instructions. In August last year the officials here issued a Proclamation stating that British merchants were permitted to trade and have shares within the Treaty port of Changsha. This wording was approved by Sir Ernest Satow; but, at the same time, Mr. Flaherty was instructed to make it clear to the Chinese that the Minister adhered
to the position that the term "Treaty port" included the city. I therefore have the honour to ask for instructions as to whether you consider it desirable that I should press the authorities to issue a further Proclamation stating that the Wai-wu Pu has admitted the right of British merchants to do business inside the city.
I have, &c. (Signed)
BERTRAM GILES.
I am sorry that I cannot share Mr. Giles' opinion that no further refutation is needed to establish an acknowledgment of British right to trade in Changsha City. The correspondence seems to me rather to establish that Hunan does not accept the Wai-wn Pu's decision, and declines to give any general undertaking for the future. It is also noteworthy that the Governor does not even send his replies through the Customs Taotai and Foreign Business Bureau, but simply bids them prepare and forward answers, a procedure new to me and likely to facilitate repudiation of responsibility. That the Governor bade a third reply be prepared would have been more significaut had that third reply been in accordance with Mr. Giles' request.
The li-kin question has been complicated by the submission of some foreign firms to its being levied, and I venture to suggest that the decision as to liability, subject to which Bennertz offered to pay, might well be communicated by the Wai-wa Pu to Hunan. Otherwise payment of li-kin on entering the city is, according to our own position, an admission that the city is not included in the port.
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The expedient suggested to Mr. Moore will scarcely, I fear, save the original sellers from persecution, even if, as is possible, the gentry have not arranged that deeds contain a clause providing against such indirect acquisition by foreigners. If the interference with a Japanese merchant and his prospective seller by the Con- stabulary Bureau is provable, it shows that the Proclamations which led to the original claim for compensation in October 1904 have never really been withdrawn, and that the denial of Treaty rights continues despite their acknowledgment by the Wai-wu Pu.
(Signed) E H. FRASER, Consul-General.
Sir,
Hankow, October 8, 1906.
Inclosure 2 in No. 1.
Acting Consul Giles to Governor of Hunan,
Changsha, June 28, 1906. ON a previous occasion I informed your Excellency that I had been instructed by His Majesty's Minister that the Wai-wu Pu had admitted the right of British subjects to set up business establishments inside the city of Changsha. I subsequently received a joint reply from the Superintendent of the Foreign Bureau and the Customs Superin- tendent, who informed me that they had been directed by your Excellency to answer my despatch. They stated that they had received no instructions from you notifying them of the receipt of any communication from the Wai-wu Pu admitting such a right, and that until such instructions came to hand it was impossible to take any action in the
matter.
More than two months have now elapsed, and I have received no further statement on this subject from your Excellency. I should therefore be much obliged if you would let me know how the matter stands at the present moment, so as to enable me to report to His Majesty's Minister.
I avail, &c. (Signed)
Inclosure 3 in No. 1.
BERTRAM GILES.
Hunan Foreign Bureau and Changsha Customs Superintendent to Acting Consul Giles,
Sir,
Changsha, July 13, 1906, ON the 5th July we received directions from his Excellency the Governor to prepare a joint reply to your despatch of the 28th June, with reference to the right of British merchants to set up business establishments inside the city of Changsha (quoted in full).
On the 19th June we had already been instructed by his Excelleney the Governor that he had received a communication from the Wai-wu Pu to the effect that the British Minister had brought to their notice, in connection with the right of British merchants under Treaty to set up business establishments inside the city of Changsha, the fact that the British Consul at that port had telegraphed that the local Chinese authorities denied having as yet received from the Central Government any admission of such a right. The Minister had therefore requested the Wai-wu Pu to instruct the Changsha authorities to that effect. To this the Wai-wu Pu bad replied, with reference to the opening by Mr. Bennertz of a hong inside the city of Changsha, that, he being a man of no substance, the gentry and the people had been opposed to his residing inside the city, but that there had been no intention of restricting the business of foreign merchants.
On receipt of the Governor's original directions, we were on the point of addressing you on the subject, aud now, in pursuance of his further instructions, we have the honour to forward the above statement for your information.
We avail, &c. (Seals of Foreign Bureau and of
Customs Superintendent.)
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