This Document is the Property of His Britannic Majesty's Government. 431

CHINA TRADE,

ONFIDENTIAL.

$8634]

No. 1.

43659

RECE REGE 14 DEC 07

[December 4.]

SECTION

Foreign Office to Board of Trade.

WITH reference to the letter from this Department of the 8th October, I am

Foreign Office, December 4, 1907. frected by Secretary Sir Edward Grey to transmit to you herewith, to be laid before e Board of Trade, a copy of a despatch which has been received from His Majesty's mbassador at Tokić on the subject of discrimination in rates on the South Manchurian Railway.*

The position of this matter would appear to be as follows:-

Kwangchengtze, where the Russian and Japanese portions of the Manchurian ilway meet, is 190 miles from Mukden, which, in its tura, is distant from ewchwang and Dalny respectively 115 and 250 miles.

As

Newehwang goods pay 49 sen per ton per mile, and Dairen 25 sen per inile. as Mukden this means that the former pay 560 sen and the latter 625 sen. wchwang has an advantage of 65 sen. southern ports and Kwangchengtze, which, according to the China Association, is But as regards goods moving between the So far great distributing centre of Manchuria, the position is reversed, Newchwang goods ying 1,491 seu and Dairen goods 1,100 sen. Away charges involve hardship to Newchwang turns on what is the destination and The whole question whether the present gin of the bulk of that port's trade in Manchuria. Japanese railway authorities have struck a fair average.

It may be that by their tariff

Sir E. Grey is satisfied that it would not be possible for His Majesty's Govern- at to hold out for a claim that the same freight per mile should be charged upon ods from Dairen as from Newchwang.

I am to inquire whether, in the opinion of the Board of Trade, the present freight angements on the Japanese section of the Manchurian Railway constitute a Bonably satisfactory settlement of the question.

I am, &c. (Signed) F. A. CAMPBELL

* Sir C. MacDonald, No. 239, October 28, 1907.

[2765 d-1]

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