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of business inside the city of Changsha without let or hindrance, and to issue a Proclamation to this effect, stating that foreign goods are not subject to li-kin on entering the city.
I avail, &c. (Signed)
Your Highness,
Inclosure 10 in No. 1.
Sir J. Jordan to Prince Ching.
J. N. JORDAN.
Peking, December 10, 1906. WITH reference to my note of the 27th October on the subject of the right of British merchants to open business establishments and to trade within the walls of Changsha City, I have the honour to inform your Highness that, according to a telegram lately received from Changsha, His Majesty's Consul and the Japanese Consul had an interview with the Governor of Hunan on the 27th November to press for the issue of a Proclamation. At that interview his Excellency asked for a few days to consider the matter. On the 4th December the Customs Taotai called on Mr. Giles to deliver a message from the Governor to the effect that his Excellency had further instructions from the Wai-wu Pu to admit the right of foreign merchants to establish themselves inside the city, but that in his opinion the Wai-wu Pu were not sufficiently acquainted with the local conditions, and that consequently he did not see his way to comply with the Consul's request pending further instructions.
I bave the honour to request that your Highness will be so good as to issue such further instructions as will insure that the high provincial authorities of Hunan delay no longer in publicly recognizing the right which has been admitted by the Chinese Govern- ment; and that a Proclamation is issued at an early date stating clearly that British subjects are free to establish places of business inside the city of Changsha without let or hindrance, and that foreign goods are not subject to li-kin on entering the city.
I avail, &c. (Signed) J. N. JORDAN.
(No. 23.) Sir,
Inclosure 11 in No. 1.
Acting Consul Giles to Sir J. Jordan.
Changsha, December 5, 1906. I HAVE the honour to acknowledge the receipt of your instructions of the 27th October, with reference to the residence of merchants in the city of Changsha, and, in extension of my telegram of yesterday, to report on the steps taken by me.
The Japanese Consul and I, after consulting together, had an interview on the 27th November with the new Governor, to discuss the matter. As his Excellency had only recently taken over the seals of office, we detailed at length the previous negotiations, and laid before him the text of the despatches which had passed between Sir Ernest Satow and Prince Ching, including the latter's admission of the right to trade inside the city. We concluded by saying that we were instructed by our respective Ministers to ask for the issue of a Proclamation recognizing such a right, and stating plainly that foreign goods were not subject to li-kin on entering the city.
The Governor appeared nonplussed; he considered for some time, and finally remarked that, since the question had been fully discussed and settled in Peking, there was nothing more to be said. We accordingly urged his Excellency, in view of the admission of the right of residence in the city, to issue a Proclamation to that effect for the information of the people of Changsha. The Governor hesitating to reply, we inquired if he had received no instructions from the Wai-wu Pu on this point. On his admitting that a despatch had come from the Wai-wu Pu with reference to the right of trading inside the city, we further inquired whether it contained any reference to the issue of a Proclamation admitting such a right. The Governor hesitated again, and finally said that he could not remember. The impression left on my mind, as well as on that of the Japanese Consul, by the Governor's manner was that the despatch from the
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Wai-wu Pu did include such instructions, but that the Governor was reluctant to admit the fact. Finally his Excellency said that he had only recently arrived from Kueichow to take up his post in Hunan, and that he had not as yet had time to study this question. but that he would let us have his reply in a few days.
We asked him not to overlook the further point of exemption from li-kin; to which he replied that foreign merchants were entitled to import goods free of li-kin. We pointed out that exemption from li-kin applied to foreign imports, not merely to goods in the hands of foreign merchants; but his Excellency maintained that, once the goods had passed into Chinese hands, foreign merchants were no longer concerned with them or with the extent to which they were taxed. After some discussion on this point, the Governor again promised to let us have an answer in a few days.
On the 4th December, as reported in my telegram of that day's date, the Customs Taotai came to see me to bring me the Governor's reply. It was to the effect that the Governor had received a despatch from the Wai-wu Pu, directing him to act on the instructions addressed to his predecessor and to admit the right of foreign merchants to open business establishments inside the city of Changsha; but that his Excellency, considering that the Wai-wu Pu was insufficiently acquainted with the conditions prevailing in Changsha, found himself unable to comply with these instructions. In order to remove any possibility of a misunderstanding, I asked the Taotai to repeat his message, which he did, satisfying me that there was no mistake on iny part as to its purport.
I inquired whe hier the Wai-wu Pu had sent no instructions with reference to the issue cf a Proclamation. The Taotai replied that the Wai-wu Pa had mentioned in their despatch that the British Minister had asked for such a Proclamation, but had not actually instructed the Governor to issue one. Here, again, I felt convinced from the Taotai's manner that actual instructions had been received for the issue of the Proclamation.
I then asked whether the Governor's answer meant that in case a British merchant endeavoured to establish himself inside the city the local authorities would do their best to hinder him. The Taotai said that he had no instructions from the Governor on this point, but that, speaking for himself, he would decide any case that might hereafter arise in friendly consultation with me; to which I replied that such an artargement was quite unacceptable.
The Tautai, who, as is well known, has a large pecuniary interest in the proposed foreign Settlement outside the north gate, then said that the British merchants had objected to the site of this Settlement as being too low-lying, and asked whether in the event of its being raised to a proper level their objections would be withdrawn. I replied that I could only repeat what had been said by the Minister. that if the Chinese authorities chose to prepare a Settlement and if British merchants chose to reside there, they were at liberty to do so; but that British merchants could not he forced to reside in the Settlement exclusively, but were free to take up their abode wherever they wished to, either inside or outside the city. The Taotai then went on to raise the well-worn objections as to the ignorance of the people rendering mixed residenc. undesirable and the density of the population preventing foreigners from establishing themselves in the city; but I replied that I saw no advantage to be derived from labouring these points, which had already been fully discussed,
After the Taotai bad left, I called upon the Japanese Consul to consult with him. We agreed that a verbal message conveyed through the Taotai could hardly be held to dispose finally of the question, and we arranged to address a despatch to the Governer. requesting to be informed whether there had been no misunderstanding in respect of the message with which the Taotai had been charged, I will forward a copy of the Governor's reply as soon as it comes to hand.
I learn from a confidential source that after our interview with the Governor on the 27th November his Excellency called a meeting of the provincial and other prominent officials and invited their opinions on the subject The Treasurer is reported to have said that, as the Wai-wu Pu had conccued the point, there was nothing to do but to act in accordance with their instructions. The Judge agreed, adding, however, that if foreigners resided inside the city they must submit to Chinese jurisdiction, but it was pointed out to him that this would not accord with extra-territorial rights. The opinions of the other officials varied, and the question was left undecided for the time being.
In the case of the gentry, so far as my information goes, the opposition to the residence of foreign merchants inside the city is neither as pronounced nor as unanimous as it originally was; and I understand that the general feeling is that nothing is to be gained by refusing to comply with the instructions of the Wai-u Pu.
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