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AFFAIRS OF CHINA.
CONFIDENTIAL.
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No. 1.
SECTION 1.
Sir Edward Grey to Sir J. Jordan.
(No. 49.) Sir,
Foreign Office, January 28, 1908. WITH reference to your despatch No. 349 of the 21st July last, I transmit to you copies of correspondence, as marked in the margin, respecting the dispute between the Chinese Engineering and Mining Company and local French authorities in regard to certain lands in French occupation at Chinwangtao,
Your attention is specially invited to the Memorandum communicated on the 4th July last by the French Government to His Majesty's Ambassador at Paris, in which, after summarizing their point of view, they suggest alternative settlements of the question. By the first proposal, the French authorities would give up to the Company, under certain conditions, such portions of the land in their occupation (inclusive of quarries) as may be required by the Company; by the second, the Company would grant to the French authorities a perpetual lease of such portions of the land as the latter may require, both for Government purposes and for the use of French citizens; the Company would also grant the use of their quays to French ships in return for suitable payment.
In their reply, dated the 5th November last, the Company explain why they cannot admit the French contentions, and declare their inability to consent to the formal transfer from themselves to the French Government of lands now in their occupation beyond those near the railway station, nor to the use even of those lands for private or commercial purposes.
In the note to Sir F. Bertie of the 19th instant, the French Government adhere to the offer made by them on the 4th July last for a compromise, but appear indisposed to go beyond this; and they suggest that the negotiations should be continued at Peking, where the French officials are stated to be in possession of the necessary authority and knowledge.
I shall be glad to learn whether you consider that there is any prospect of arriving at a settlement by negotiation at Peking.
I am, &c. (Signed) E. GREY.
* Mr. Lister, No. 336, July 4; Chinese Engineering and Mining Company, August 20; ditto, October 18; ditto, November 5; Sir F. Bertie, No. 580, December 4, 1907; ditto, No. 33, January 19, 1908.
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