[This Document is the Property of His Britannic Majesty's Government]
167
C. O.
AFFAIRS OF CHINA.
CONFIDENTIAL,
[21623]
No. 1.
[July 151 34181
SECTION REC
Rp 25 SEP 07
Sir,
Foreign Office to the Chinese Engineering and Mining Company.
Foreign Office, July 15, 1907.
I AM directed by Secretary Sir Edward Grey to acknowledge the receipt of your letter of the 27th ultimo, complaining of certain action taken by the Viceroy of Chihli as in violation of the rights of the Chinese Engineering and Mining Company.
I am to inform you that on the 29th ultimo a telegram was received from His Majesty's Minister at Peking on this subject.
Sir J. Jordan stated that a Chinese Company, under the protection of the Viceroy of Chibli, had been formed to undertake mining in localities which the Chinese Engineering and Mining Company claimed were within the area which belonged to them. He had requested His Majesty's Consul-General at Tien-tsin to interview the Viceroy and represent the Company's contention to him, but his Excellency was unwilling to listen to tre Company's views, holding that their position was irregular, the transfer of the old Company's property by Chang Yen Mao never having been recognized by the Chinese Government. Sir J. Jordan added that, with Major Nathan's concurrence, he proposed still to endeavour to induce the Viceroy to come to some amicable arrangement with a view to the regularization of the Company's position.
Sir J. Jordan has since been informed by telegraph, in reply, that as regards the deed of transfer, His Majesty's Government were not disposed to question the judgment of the Court of Appeal, which, after full investigation, found that the transfer was valid, holding at the same time that the provisions of the Memorandum must be observed, and that an inquiry should be held to decide what damages, if any, were due to the old Company in respect to the non-fulfilment of these provisions.
In these circumstances Sir J. Jordan was informed that he should not acquiesce in any attempt on the part of the Viceroy of Chihli to deprive the Company of their property except in pursuance of a judgment of a British Court in China; and further that, while the fact that the transfers never having been confirmed by Imperial Decrec no doubt weakened the Company's case to some extent, His Majesty's Government thought that in the negotiations which took place they were justified in assuming that an official in the position of Chang Yen Mao was authorized to conclude an arrangement.
Sir J. Jordan was therefore told that, while any reasonable compromise to which the assent of the Viceroy could be obtained should be accepted, it should at the same time be made clear to him that His Majesty's Government could not view any confiscation of the Company's property with indifference, and his Excellency might in the first instance be urged to agree to the appointment of Assessors in accordance with the judgment of the Court of Appeal.
I am, &c. (Signed) F. A. CAMPBELL.
[2570 p-5]