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2
the Chief Engineer is to be Japanese. Mr. Bland considers, and the Corporation agree with him, that these provisions conflict with paragraph 2 of clause 3 of the Loan Agree- ment of the 10th October, 1898, and with Article 5 of the Agreement (B) of the 29th April, 1902, and they insist that the bondholders' and their own rights are infringed. The former thinks that it should be clearly understood that the Chinese Railway Administration extends to the Liao River, and that the Japanese control is limited to the east of that river.
The Foreign Office have instructed me to consult you on the matter in case you might be able to suggest some compromise which will effectively safeguard the Corporation's interests.
I should feel very greatly obliged if you would be kind enough to furnish me with your views. I see from the newspapers that you have been to Mukden and taken over the Hsin Min Tun line on behalf of the Administration. Perhaps this may mean that the provisions of the Japanese Agreement referred to above are to remain more or less a dead letter, as the Japanese Minister hinted at the time. I should be most grateful for information that
any
you may be able and willing to give me, and I am ready to see you at any time if you would prefer to come up and talk over the matter with me.
(Extract.)
Yours sincerely, (Signed)
J. N. JORDAN.
Inclosure 2 in No. 1.
Mr. Kinder to Sir J. Jordan.
Imperial Railways of North China, Engineer-in-Chief's Office, Tongshan, June 23, 1907.
YOURS of the 20th duly to hand, and I wired you this morning that I have full control of extension as far as east bank of the Liao Ho. The Japanese played the game, and we have had no trouble with them. Our relations are most friendly. Nominally I have nothing to do with the line between Liao Ho and Mukden, but I have put in a Japanese engineer who has been with us for four years, and he does whatever I want, and has the title of Chief Engineer of "Liao Ho and Mukden Extension.” The British and Chinese Corporation have absolutely no cause to consider any of the bond- holders' rights are infringed. (In case we cannot pay for the works needed west of east bank of river, we shall of course borrow money from them, but as it is only 100,000. or so, we shall be able to provide it out of the revenue.)
As regards funds for the Mukden side, we must obtain half from the Japanese in accordance with Agreement, so as to give them the same claim on that part of the line as the English have over the western division. I see no objection to this, as their supervision is merely nominal and will not affect in any way the actual working of the railway in question.
I shall be much obliged if you will let the Japanese Minister know how well we were treated at Dalny and Port Arthur, and how much I appreciate it. Baron Goto has got together a very able staff, and the South Manchurian Railway is going to be a very great
spccess.
This Document is the Property of His Britannic Majesty's Government
33223
95
REC
AFFAIRS OF CHINA.
CONFIDENTIAL.
[23397]
No. 1.
Sir J. Jordan to Sir Edward Grey.—(Received July 15,)
[ely 17. SEP 07
SECTION 4.
(No. 265. Confidential.)
Peking, May 30, 1907. Sir,
REFERRING to my telegram No. 93 of the 27th instant, I have the honour to inclose copies of two Agreements respecting the establishment of a custom-house at Dalny, which are to be signed here in the course of the next few days, between the Japanese Minister and the Inspector-General of Customs,
These Agreements are identical in their main terms with the Kiao-chau Customs Arrangement of the 17th April, 1899, and the Kiao-chau Inland Waters Steam Navigation Agreement of the 7th April, 1904, but there are a few important; differences.
The Kiao-chau Arrangement of 1899 contained a stipulation that the Maritime Customs were to levy on opium brought into Tsingtao the same duty and li-kin as were levied on opium at the Treaty ports, and that the portion of such duty and li-kin as was collected on opium entering into consumption in the German territory should be paid over to the German Government.
The Agreement for Dalny contains no corresponding provision.
Under the 1899 Kiao-chau Agreement the Maritime Customs were intrusted with the collection of duties, taxes, and li-kin on junks coming to Tsingtao or other places in the Bay of Kiao-chau, and on all cargo brought in them.
This is also omitted from the Dalny Customs Arrangement (Annex (A)).
In Annex (B), which relates to inland waters steam navigation, the first five clauses are practically a reproduction, mutatis mutandis, of the Kiao-chau Agreement of 1904; but the sixth clause, relating to the transmission of Chinese mails, is considerably different, and the seventh is entirely new,
I have, &c. (Signed) J. N. JORDAN.
Inclosure 1 in No. 1,
Agreement respecting the Establishment of a Maritime Customs Office at Dairen, signed at Peking.
(Annex A.)
THE Commissioner or the Chief of the Maritime Customs Office at Dairen is to be of Japanese nationality. The Inspector-General of Customs will come to an understanding with the Japanese Legation at Peking in case of appointing a new Commissioner.
2. The members of the foreign staff of the Maritime Customs Office at Dairen shall, as a rule, be of Japanese nationality. In case, however, of a suddenly occurring vacancy, or of temporary requirements of the service, members of other nationalities may be provisionally sent to Dairen.
3. The Inspector-General of Maritime Customs will inform the Governor-General of Japanese leased territory beforehand about any change in the Commissioner of Customs at Dairen,
4. All correspondence between the Customs Office at Dairen and the Japanese authorities and Japanese merchants shall be conducted in the Japanese language. Should, however, merchants of other nationalities come to reside at Dairen, they shall be at liberty to correspond in the English language; correspondence in Chinese shall be likewise permitted.
[2570 p-4]