14

We are unaware whether Chu Taotai's statements really convey your Excellency's true views or not, and we therefore have the honour to ask you to give us a clear statement on this point.

We avail, &e.

(Seals of Japanese and of British Consuls.)

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

AFFAIRS OF CHINA,

CONFIDENTIAL.

C. O.

[March 11h1983

RECE SECTION 1

REGE 5 APR 07

Gentlemen.

Inclosure 14 in No. 1.

Governor of Human to Japanese Consul and Acting Consul Giles.

Changsha, December 21, 1906. I HAVE the honour to acknowledge receipt of your despatch asking for a clear statement with reference to the question of foreign merchants opening business establish- ments and trading inside the city of Changsha, and also of your subsequent letter pressing for a reply.

When Changsha was opened as a Treaty port the Changsha Customs Tautai, in conjunction with the Foreign Bureau and Mr. Harris, the Commissioner of Customs, selected a site outside the north gate for the international Settlement, and one outside the west gate to provide wharfage accommodation for steamers Regulations for the leasing of land were drawn up and communicated to the various Consuls at Hankow, and were also submitted to my predecessor, who transmitted them to the Wai-wu Pu. The action of Mr. Bennertz, a British subject, in opening an establishment inside the city was found to be contrary to the Regulations, and it was consequently arranged that the business should be taken over by the gentry.

All foreign merchants at the various Treaty ports in China reside and trade within the limits of the Settlements. In 1903, when the Japanese Commissioners, Mr. Hioki and Mr. Odagiri, were negotiating the Commercial Treaty at Shanghae, they were anxious that the free right of residence in the ports, the cities, and the towns should be admitted; but the Chinese Commissioners, Mr. Lu, Mr. Shêng, and Mr. Wu, declined to agree to this clause, and expunged it.

The Settlements which have been delimited were especially intended for foreign merchants to reside and trade in, and the practice has been uniformly adhered to at all the Treaty ports for several decades past. I am consequently unable to comply with the request of the British Minister, Sir John Jordan, that I should recognize the right of British merchants to open business establishments inside the city of Changsha, and I have already directed the Customs Tactai to inform you accordingly.

I have telegraphed to the Wai-wu Pu asking them to acquaint the British Minister

with the above, and have the honour to ask you to take note thereof.

I would add that the rebellion in the Liu-yang and the Li-ling districts, entailing the moving of troops and the taking of precautionary measures, has not left me a moment's leisure of late, and it is on that account that my reply to you has been somewhat delayed.

I avail, &c. (Seal of Governor of Hunan.)

[8007]

Sir,

No. 1.

China Missions Emergency Committee to Sir Edward Grey.—(Received March 11.)

Pembury, Kent, March 8, 1907. WITH reference to an application recently made to you by Mr. Francis William Fox, a member of the above Committee, who is proceeding to China in his private capacity, I am directed to inform you that the Committee, at its last meeting, unanimously adopted the following Resolution, a copy of which I was requested to forward to you :-

That this Committee, with a view to removing any possible misunderstanding in Sir Edward Grey's mind, desires distinctly to state that it has never contemplated any action which might be construed as an intrusion into the sphere of politics, or an interference with the relations between the British and Chinese Governments.

[2418 -1]

I have, &c. (Signed) W. GILBERT WALSHE, Hon. Sec.

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