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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[36131]

No. 1.

330

[November 1.]

SECTION 1.

Sir J. Jordan to Sir Edward Grey.-(Received November 1.) (No. 185.) (Telegraphic.) P.

Peking, November 1, 1907. I HAVE the honour to inform you that the Wai-wu Pu have communicated to me the Mining Regulations, a copy of which will be sent to you as soon as the translation has been made.

The following grave objections may, inter alia, be advanced against them :-

1. In all matters of civil jurisdiction foreigners engaged in mining are amenable to the laws of China.

2. An undertaking must be given that any supplementary Regulations which may be promulgated by the Chinese Government will be obeyed.

3. Revision of existing Mining Agreements, in so far as they affect China's sovereign rights, is to be undertaken, and all such Agreements are to be brought into harmony with these Regulations.

4. No mining operations are to be undertaken by foreigners except in conjunction with Chinese, and the latter are treated more favourably in the division of the net profits.

The whole Code is contrary to the spirit of Article IX of the British Treaty of 1902, and is calculated to exclude rather than attract foreign capital.

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