2

We have prepared the inclosed Memorandum for your Excellency's information, and would be glad of an expression of your Excellency's views in this matter.

We avail, &c.

(Translation.)

Inclosure 2 in No. 1.

Memorandum by the Wai-wu Pu.

The Mixed Court Case.

THE Viceroy at Nanking has now telegraphed accepting the principle that a joint investigation should be held by the Shanghae Taotai and the Judge of His Britannic Majesty's Supreme Court, but his Excellency still holds to his opinion that it ought not to be called a "judicial inquiry" owing to the dissimilarity between Chinese and foreign procedure, the rule being that Chinese officials do not, in our law, appear personally in Court, but by representatives who plead for them. The Nanking Viceroy, in consultation with Jui Taotai and in deference to popular opinion, has drafted a set of rules under three headings for the joint inquiry.

1. The Shanghae Taotai and the Judge of His Britannic Majesty's Supreme Court shall have power to examine all the evidence in this case and to personally interrogate Chinese and foreigners, whether officials or private individuals, provided that officials or private individuals, whether Chinese or foreign, of good repute, shall be treated with consideration and allowed to remain seated while giving their evidence, so as to distinguish the proceedings from those of an open Court.

Both officials and private persons may engage the services of counsel to represent them.

2. This case concerns the International Mixed Court, and it is therefore impracticable that its decision should rest solely with the Chinese and British authorities. The Shanghae Taotai should therefore invite a non-Chinese subject and the Judge of His Britannic Majesty's Supreme Court, a non-British subject, to act as Assessors in the interests of justice. But the chief control of the inquiry will remain in the hands of the Taotai and Judge.

3. The subjects for inquiry will be divided into-

(1.) The Mixed Court Eracas.

(2.) The riots.

(3.) The injuries and losses of Chinese and foreigners. The inquiry into the Mixed Court fracas should be further sub-divided into the questions

(a.) Whether or not Mme. Li Huang-Shih was a kidnapper ?

(b. Whether or not the custody of female prisoners in the foreign gaol was in accordance with Regulations, and whether the Chinese authorities and Consular Body had consented thereto ?

(c.) To establish the rights and wrongs with regard to the difference of opinion between the Mixed Court Magistrate and the British Assessor, and in the fracas between the foreign police and the Chinese runners in the Court room.

The inquiry into the riots should be further sub-divided into the questions---

(a.) Whether the Chinese officials took any steps to prevent the public meetings and the shop strike in the Settlement, and what evidence there is to show that the affair was fomented by the Chinese authorities?

(b) Whether the mob that engaged in the riots came from within or without the Settlement ?

(c.) In whose hands does the power of safeguarding the Settlement ordinarily lie? Whether or not the Chinese authorities have the power to put down disturbance? Whether on that day the Chinese authorities did their best to admonish the people and restore order?

The inquiry into the injuries and losses of Chinese and foreigners should be sub-divided into the three following points:-

3.

(a.) To what extent was the property of (@) Chinese and (b) foreigners injured39 or destroyed?

(b.) How many Chinese were wounded, and in what manner? How many foreigners were wounded, and in what manner?

(c.) How many Chinese were killed, and by whom? How many of these were peaceful citizens and how many rioters ?

Cognizance will only be taken of such facts as are supported by evidence. No consideration will be given to any that are not supported by proof.

Any (essential) points which may not be covered by the above three Articles shall be arranged by the Shanghae Taotai and the Judge of His Britannic Majesty's Supreme Court in consultation when they meet, and having been arranged the inquiry will be opened.

When the joint inquiry is over both Governments will admit that all proofs have been produced and the settlement of the case will then be proceeded with as a separate negotiation, the proposals being subject to the approval (of the higher authorities). If in the course of these negotiations a difference of opinion arises between the Taotai and the Judge, they shall refer the case to the higher authorities of both countries for further discussion. The above proposals offer a just and equitable mode of settlement, and we trust that so enlightened a country as Great Britain will find no difficulty in accepting them and putting them into effect with a view to an early settlement of

the case.

Sir,

Inclosure 3 in No. 1.

Sir J. Jordan to Sir H. de Sausmarez.

Peking, May 13, 1907. THE question of an indemnity to British subjects for losses sustained during the riots which took place at Shanghae on the 18th December, 1905, has formed the subject of continuous discussion for more than a year between this Legation and Wai-wu Pu, and the various phases of the negotiations have been recorded in despatches addressed to His Majesty's Secretary of State, copies of which have from time to time been forwarded to His Majesty's Consul-General at Shanghae, and His Majesty's Consul at Nanking, both of whom will be able to supply you with full information on the subject.

Finding it impossible after the most exhaustive discussion to induce the Wai-wu Pu or the Viceroy at Nanking to entertain our claim, the justice of which they vehemently denied, I eventually offered, in a Memorandum, copy of which I have the honour to inclose,* to recommend to His Majesty's Government the investigation of the whole case by a Joint Commission composed of yourself and the present Taotai at Shanghae. This proposal was forwarded by the Wai-wu Pu to the Viceroy at Nanking, and after some delay elicited the counter-proposal, copy of which is likewise inclosed.†

In telegraphing the substance of the latter to His Majesty's Secretary of State, I asked permission to submit it to you, and ascertain whether, after consultation with His Majesty's Consul-General at Shanghac, you considered it could be usefully adopted as it stood or in some modified form.

Sir Edward Grey approved my proposal, but stated it would be far preferable, if it were possible, to eliminate from the proposed inquiry the points embraced in section 1. Their discussion, he pointed out, could only cause delay, and he regarded them as quite irrelevant to the issue between us and Chinese which related to the responsibility of the local authorities for the riot. The Chinese contention with regard to the custody of the female prisoners had, Sir E. Grey added, been practically admitted by us.

As you will doubtless share the views of the Secretary of State respecting the limitation that should be placed on the inquiry, it is perhaps desirable that I should state beforehand what prospect there is in my opinion of gaining acceptance for his suggestion.

* Memorandum to Wai-wu Pu, March 8, 1907.

† Memorandum from Wai-wu Pu.

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