:

8

accept the same. I therefore have the honour once more to urge your Excellency to personally favour me with a clear statement with regard to the establishment of firms inside the city, as a proof of good faith and with a view to settling the point.

1 avail, &c.

(Signed)

Inclosure 7 in No. 1.

BERTRAM GILES.

Hunan Foreign Bureau and Changsha Customs Superintendent to Acting Consul Giles.

Sir,

Changsha, September 21, 1906. ON the 9th September we were instructed by his Excellency the Governor that lie had received a despatch from you complaining, with reference to the joint communica. tion which we had addressed to you on the 1st September, that it was utterly at variance with the Govern r's words and with the views of the Wai-wu Pu, and that it was therefore quite out of the question for you to accept the same, and once more urging his Excellency to personally favour you with a clear statement with regard to the establishment of firms inside the city, as a proof of good faith and with a view to settling the matter.

His Excellency having directed us to consult together and prepare a reply, we have the honour to state that we have repeatedly informed you that some time hack a communication was received from the Wai-wu Pu declaring that there was no intention of imposing any restrictions on trade by foreigners; we added that these instructions would of course be complied with.

As regards the establishment of firms inside the city, the latter is densely populated and there is no ground available, the space being much more restricted than it is outside the city. Besides which we find that the general popular opinion is that the manners and customs (of Chinese and foreigners) differ too widely for mixed residence to be desirable. The local gentry and merchants are firm on this point. The officials hare done their best to compel them to give way, but we fear this will be difficult to accomplish; and, should any troubles arise in consequence, that is assuredly not the right way to improve friendly relations. You are thoroughly versed in all these matters, and have doubtless long since grasped this point.

In

pursuance

of the Governor's instructions to the above effect, should you at a future date transmit to us the information that any British merchants have come to Changsha to trade we shall of course act in accordance with the instructions of the Wai-wu Pu, and in each individual instance inquire into the circumstances of the case, and discuss and settle the matter after an amicable fashion. We hope thereby both to promote trading interests and to conciliate popular feeling. By these means all advantages will be retained while the drawbacks are eliminated, in accordance with the spirit in which the Treaties were framed.

With reference to the delay in replying to you on the previous occasion, it was really due to the fact that we were taking the opinions of the gentry and of the merchants, and was in no way due to any intention to put off the matter. We therefore trust that you will excuse us.

We further wish to state that it is the Customs Superintendent who is responsible for the wording of this despatch.

We inclose copies of the correspondence that have passed between the Wai-wo Pu and the British Minister on the subject.

Sir,

effect

We avail, &c.

(Seals of Foreign Bureau and of

Customs Superintendent.)

Inclosure 8 in No. 1.

Governor of Hunan to Changsha Customs Taotai.

[Undated.]

ON the 10th June I received a communication from the Wai-wu Pu to the following

The British Minister informs us, with reference to the Treaty right of British merchants to establish firms inside the city of Changsha, that the Consul at that port

9

telegraphs that the local authorities deny being in receipt of any instructions from the Central Government acknowledging such a right; and the Minister requests us to instruct the local authorities accordingly.

"As regards the establishment of a firm inside the city by the British subject, Mr. Bennertz, we have already explained to the British Minister that he was not a bond fide merchant, and that consequently the gentry and the people objected to his residing in the city, but that there was no intention of imposing any restrictions on his business. This was telegraphed to you on the 9th March.

"Having now received this further communication from the British Minister, we beg to forward herewith for your information copies of four despatches that have passed between us on the subject.”

I forward herewith the above-mentioned correspondence, and have to request you to take note thereof.

(Copies of the following despatches were annexed to the above:-

1. Sir Ernest Satow to Prince Ch'ing, 16th December, 1905;

2. Prince Ching to Sir Ernest Satow, 5th March, 1906;

3. Sir Ernest Satow to Prince Ching, 7th March, 1906; 4. Sir Ernest Satow to Prince Ching, 24th April, 1906.)

Inclosure 9 in No. 1.

Sir J. Jordan to Prince Ch'ing.

Your Highness,

Peking, October 27, 1907. WITH reference to Sir Fruest Satow's note of the 24th April on the right of British subjects under Treaty to trade and open business establishments within the walls of Changsha City, I have the honour to inform your Highness that I learn from Bis Majesty's Acting Consul at Changsha that for the past six months he has been in correspondence with the local authorities on this question, but without satisfactory result. On the 13th July the Foreign Bureau and Customs Taotai stated in a note that they were instructed to communicate the gist of a further despatch from the Wai-wu Pu on the subject, but no reference was made therein to the question of trading in the city.

On the 25th July Mr. Giles called on the Governor, who stated that the note of the Foreign Bureau and Customs Tautai had merely repeated the language of the Wai-wu Pu, to which he could add nothing. At the same time, in reply to a question of His Majesty's Consul, his Excellency said he fully admitted the right of British subjects to reside and trade in the city, and he eventually promised to give this assurance in writing in a further note.

On the 31st July His Majesty's Consul accordingly wrote to his Excellency asking for the required assurance. On the 22nd August, no reply having been received, His Majesty's Consal wrote again, and was in due course informed that the reply was being drafted by the Customs Taotai. On the 1st September the reply arrived, but proved to be entirely unsatisfactory and a mere repetition of the previous note.

His Majesty's Consul then wrote to the Governor complaining of this breach of his verbal engagement, and a few days later the Customs Taotai in an interview begged that the matter should not be pressed. To this His Majesty's Consul could not agree, and eventually on the 21st September the Tastai, under instructions from the Governor, addressed to Mr. Giles the note of which 1 have the honour to inclose a copy.

It will be observed that the right of British subjects under Treaty to reside and trade in the city is still combated by the local authorities, and that although copies of the correspondence between your Highness and Sir Ernest Satow are inclosed under cover of the note, they still hold that if any British merchants come to Changsha to trade each case will be inquired into and the question settled after discussion in an amicable

manner.

I am unable to perceive the object of writing in this evasive manner, unless it be to reopen the whole question whenever occasion arises.

I therefore have the honour to request that the Hunan provincial authorities may be definitely instructed to recognize the right of British merchants to establish places

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