(This Document is the Property of His Britannic Majesty's Government]
AFFAIRS OF CHINA.
CONFIDENTIAL.
34181
166 96 SEP C7
[June 29.1
SECTION
[21389]
Sir,
of
No. 1.
The Chinese Engineering and Mining Company to Foreign Office.-(Received June 29.) 22, Austin Friars, London, June 27, 1907.
ON the 19th July, 1906, I wrote informing you that it had come to the knowledge my directors that rumours were in circulation in North China to the effect that the Viceroy Yuen Chi Kai contemplated taking action hostile to this Company's interests, either of a directly forcible character or by the granting of Concessions for the working of coal within the area owned by this Company,
The Secretary of State was good enough to communicate with His Majesty's Chargé d'Affaires at Peking, and on the 4th August you wrote informing me that the latter had stated that he was reliably informed that the rumours in question were ill-founded, and that the Viceroy, though hostile, would do nothing illegal or by force.
I am now instructed by my Board to advise you that a very grave situation has arisen. Information has been received by cable during the last few days from this Company's agent and general manager in China, Major Walter S. Nathan, R.E., that, acting on a Petition dated the 7th June, which had been presented to his Excellency Yuen Chi Kai, requesting permission to open a new mine in the Kaiping coal basin, his Excellency has issued a Rescript dated the 8th June approving a Concession which grants to a Chinese Company mining rights over the whole of the Kaiping coal-field, and limits this Company's working to 10 ti from Tongshan and 6 li from Linsi.
Major Nathan further states that machinery is now arriving for a new Chinese mine at Ma Chia Kan, which is situated in the Kaiping basin about 6 miles from this Company's Tongshan colliery, but that no actual work has yet been started.
Among the rights acquired by this Company under the purchase Agreement of the 19th February, 1901, Ma Chia Kau is specifically mentioned, clause 1 of the Agreement being as follows:--
"All the lands, mines, and coal-field, commonly known as the Estate Kaiping Coal- field, situate in the Province of Chihli aforesaid, and including all the mines and seams of coal and minerals geologically connected with the mines and seams of coal known as Tongshan, Hse-Shan, Pan Pe Tien, Ma Chia Kau, Wu Shu Chwang, Chao Ko Chwang, and Linsi, and the exclusive right to search and mine for coal and minerals within the area and coal-field aforesaid, and all other rights and privileges enjoyed in connection therewith, and all other the interest of the said Chinese Engineering and Mining Company therein.”
Under these circumstances the granting of the Concession in question, and the attempt to arbitrarily limit the rights of this Company to the immediate neighbourhood of the Tongshan and Linsi mines, which are in active operation, constitute a wanton act of aggression upon the property and rights of this Company.
We learn from Major Nathan that he has been in personal communication with His Majesty's Minister at Peking, who has sent the British Consul at Tien-tsin to see the Viceroy.
Whilst appreciating the promptitude of this action, my directors feel that it is of vital importance that the matter should be dealt with decisively at once, as it is certain that any delay will inevitably render the situation still more grave and complicated, and add to the difficulties of the situation.
I am therefore desired by my directors to ask that instructions may be given by cable to His Majesty's Minister in Peking to protest to the Chinese Government and to the Viceroy immediately against this violation of the Company's rights, and to require that all proceedings under the Concession shall be stopped forthwith, and that the Concession itself shall be cancelled.
Awaiting the favour of your reply, I am, &c.
For the Chinese Engineering and Mining Company (Limited), (Signed)
ALFRED W. BERRY, Secretary.
[2524 ƒ-2]