533
2
proceeded with. If that is refused, then he is to put before them the alternative propositions above mentioned. If both these propositions are rejected, then my Directors propose, subject to the approval of Secretary Sir E. Grey, to instruct Mr. Brown to request His Majesty's Minister to present to the Chinese Government a further claim for compensation similar to what was presented in respect to the delay in issuing the coal permit for Ping-ting Chow.
In regard to the amount of this claim, it is very difficult for my Directors to give data on which it should be calculated, but they submit it must from the nature of the case be something substantial. In the original Prospectus the earnings from the working of iron were estimated at 500,0007. per annum, but to be well within the mark I am to submit that 1001. per diem be named in the first instance, coupled with the intimation that the sum will be increased after a certain date if the refusal is persisted in, as was done in the case of the Ping-ting Chow permit.
Trusting that this proposition may commend itself to the approval of Sir Edward Grey, I have, &c.
THOS. GILBERT, Secretary, ·
(Signed)
Inclosure 1 in No. 1.
3
of the 9th instant will be read with amazement in London. There is no alternative for me but to telegraph the regrettable information at once to my Board of Directors.
Sir,
I have, &c. (Signed) GEORGE BROWN,
Inclosure 3 in No. 1.
Sir J. Jordan to Peking Syndicate, Tien-tsin.
Agent-General.
Peking, May 11, 1907. WITH reference to previous correspondence on the subject of the delay of the Chinese Government in issuing a mining permit to the Peking Syndicate and with regard to the carrying out of the terms of the Shansi Smelting Agreement, I beg to forward to you herewith copies of two further notes from the Chinese Government. Before replying to the Wai-wu Pu, I think it may be useful to transmit to you copies of these notes and shall be obliged if you will furnish me with any further observations you may wish to offer on the matter as soon as possible.
J. N. JORDAN.
I am, &c.
(Signed)
Inclosure 4 in No. 1.
Wai-wu Pu to Sir J. Jordan.
Dear Sir,
Peking Syndicate, Tien-tsin, to Peking Syndicate, London.
Tien-tsin, May 18, 1907. I BEG to inclose copies of a letter from His Majesty's Minister at Peking dated the 11th instant (with inclosures) and my reply of the 16th instant, from which the Board will learn that the Wai-wu Pu does not intend to fulfil the pledges made to Sir John Jordan and myself regarding the issue of the Ping-ting Chow mining permit, that it rejects the claim for compensation formulated by His Majesty's Minister under instructions from His Majesty's Foreign Office, and further declines to enter into negotiations for carrying out the Shansi Smelting Agreement of 1905.
The position is lamentable and can only be remedied by the most prompt and firm support of His Majesty's Government, which I trust the Board will be able to secure.
I am, &c.
(Signed)
GEORGE BROWN,
Agent-General.
Sir,
May 9, 1907. WITH reference to your Excellency's repeated notes respecting the delay in issuing a permit to the Peking Syndicate to start mining in Shansi, and charging the high authorities of that province with violating a solemn covenant, made by the Shansi Bureau of Commerce, at the bidding of certain agitators, students," and officials; and to your request for steps to be taken, without loss of time, to compel the Shansi authorities to perform their manifest duty in this matter, and so avoid an addition to the claim for compensation. I have the honour to observe that this Board have already on various occasions informed your Excellency in specific terms of the reason why the Government of Shansi is unable to issue the desired permit to mine.
In reply to your Excellency's note now under acknowledgment, the Board have the honour to repeat again, explicitly, that China entirely denies all responsibility for compensation in this matter.
I avail, &c.
Your Excellency,
Inclosure 2 in No. 1.
Peking Syndicate, Tien-tsin, to Sir J. Jordan.
Tien-tsin, May 16, 1907. I HAVE the honour to acknowledge the receipt yesterday evening of your Excellency's letter of the 11th instant, forwarding two further notes from the Chinese Government, the first rejecting all responsibility regarding the non-issue of the mining permit for Ping-ting Chow, and the second conveying a refusal to carry out the Smelting Agreement. I venture to tender my respectful thanks for your Excelleney's continued endeavours to obtain just treatment for the Syndicate, fruitless though they have so far proved.
your
The matter of the permit is in the hands of His Majesty's Government and Excellency. I do not, therefore, take upon myself to add what is already on record beyond once more expressing the Syndicate's full confidence that effective steps will be taken eventually to bring home to the Chinese Government the injustice of the course hitherto pursued.
With regard to the Shansi Smelting Agreement of 1905, whereby the sole right of working iron and coal in five districts of Shansi is confirmed to the Syndicate, and China's expressed wish to take part in the working of iron to the extent of one half-share is recorded, with the distinct proviso that the Chinese Government will provide funds for the erection of the works to smelt the ores of the co-operation, I can only say that the repudiation of this solemn compact by the Wai-wu Pu's note
Inclosure 5 in No. 1.
Wai-wu Pu to Sir J. Jordan.
Sir,
May 9, 1907. I HAVE the honour to acknowledge receipt of your Excellency's note, inclosing copy of an application which was addressed by Mr. George Brown, Agent-General of the Peking Syndicate, to his Excellency Tong Shao-yi, Vice-President of the Wai-wu Pu, on the 18th December, 1906, with regard to the carrying out of the terms of the Shansi Smelting Agreement, and asking for an early reply.
I have the honour to inform your Excellency that the Shansi Smelting Agreement clearly states that the Chinese Government will themselves find the capital for the establishment of a smelting works in Shansi. At the present time China has no intention of establishing such works in Shansi, and there is no use in entering upon negotiations as to the conditions.
I have, therefore, the honour to request your Excellency to be good enough to convey the sense of this reply to the Peking Syndicate, and avail, &c.
(Prince Ching and Ministers.)