C 0.
32445
AFFAIRS OF CHINA.
[July 1.]
Rre
CONFIDENTIAL.
De 10 SEP 07
SECTION 5.
[21623]
No. 1.
(No. 127.)
(Telegraphic.) P.
Sir J. Jordan to Sir Edward Grey.-(Received July 1.)
Peking, June 29, 1907. CHINESE Engineering and Mining Company's affairs. Under the protection of the Viceroy of Chihli a Chinese Company has been formed to undertake mining operations within the area claimed by the above Company.
Acting under my instructions, His Majesty's Consul-General at Tien-tsin repre- sented the British Company's contention to the Viceroy at an interview on the 26th instant. The Viceroy, however, held that the British Company's position was irregular, and that the Chinese Government had never recognized it, ignoring the transfer of the old Company's property by Chang. His Excellency was unwilling to listen to the views of the British Company.
The situation was described to me yesterday by Major Nathan. The name of the new Company is the Pei Yang Lanchow Company, and it is placing machinery which it has purchased on land over which the British Company claims, under paragraph 1 of Article 1 of the Transfer of February 1901, exclusive mining rights, but for which the Company holds no title-deeds.
I fully concur with the view expressed in the last paragraph of Sir E. Satow's letter to Sir F. Campbell of the 7th December, 1905, and I have explained to Major Nathan that his Company's rights are open to grave doubt, in the absence of any proof that the transfer was ratified by Imperial Decree,
I propose, with Major Nathan's concurrence, to still try to induce the Viceroy to come to an amicable arrangement, as his Excellency might be driven to contest the validity of the transfer deed in the Consular Court were a protest lodged with the Chinese Government against infringement of the exclusive rights claimed under that document by the British Company.
But the position of the Company is, in my opinion, weak, and wide be allowed their agent, who has I understand offered, among other things, a money powers should payment of 3,000,000 dollars, in his endeavours in which he has been engaged for some time past to regularize the position of the Company.
The whole position of the Company appears to rest upon the validity of the transfer deed, and I should be glad to learn your views on this subject.
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