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plotting (with British subjects), not only is a breach of China's laws committed, but the dignity of the British flag is also affected. I must therefore request that the practice be entirely done away with so as to stop abuses,

I have now examined in detail the records of last year's "Sainam" piracy case. Over ten of the pirates concerned have been arrested, and also Liang A-chiu, the actual murderer of Dr. MacDonald, and all have been executed. Two of the rifles lost by the steamer have also been recovered and returned. Thus pirates guilty of robbery have been punished, those who injured human beings have paid the penalty with their lives, while of the booty lost rifles have been recovered. According to Treaty if the local officials do all in their power to arrest the offenders and recover the booty, there is no ground for giving compensation. In view, however, of the Admiral's statement that Dr. MacDonald, after spending over twenty years in China doing good, had been suddenly murdered, leaving behind a wife and children without means, I have been moved to compassion, and, having in view the friendliness of China and Great Britain, specially consent to pay a compassionate allowance for the death of Dr. MacDonald as evidence of commiseration.

I think the above course of action will convince you and his Excellency the Admiral of my exceptional friendliness.

Compliments.

Sir,

Inclosure 13 in No. 1.

Consul-General Mansfield to Admiral Sir A. Moore.

Canton, November 28, 1907.

I HAVE the honour to inclose translation of a despatch received last night from Viceroy Chang, which is a reply to your official of the 23rd instant.

It appears thoroughly unsatisfactory in every way, merely repeating the arguments advanced by him and by his predecessors over and over again. I may mention that when I first claimed compensation on account of the "Sainam" piracy, Viceroy Ts'en's Secretary in conversation stated that they were willing to direct the Benevolent Societies to provide a few thousand dollars as a compassionate allowance to Mrs. MacDonald, but when I informed him that the Secretary of State had estimated her indemnity at 6,000l., and that other claims had to be met, he declined to discuss the matter further.

I have telegraphed the gist of the Viceroy's despatch to Sir J. Jordan, and have the honour to inclose copy of the telegram. This deals in part with the question of the Wai-wu Pu's reference to two vessels under Customs control, which form the subject of your telegram just received. The only previous mention of these two vessels is contained in a telegram dated the 12th instant, from Sir John Jordan, copy of which I inclose, and which was submitted to you when in Canton.

You will note that this telegram infers that the two vessels spoken of are to be employed in the prevention of piracy, whereas in the Wai-wu Pu's Memorandum of the 11th instant, on which the telegram is based, such employment is not clearly stated.

You will find some reference to an additional two cruisers in reserve in Mr. King's Memorandum on the Viceroy's proposed Regulations.

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3. Right of Navigation of West River and Inland Waterways.-This was granted under the West River Regulations of 1897 and the Inland Water Navigation Rules of 1898, supplemented by the Mackay Treaty of 1902, Annex (C).

Remarks. It was at the instigation of and owing to pressure put upon the Chinese by the British Government that the Regulations mentioned under 3 were formulated, and it is a matter for serious consideration whether any great curtailment of the use of the British flag would not be a political mistake.

The navigation of the inland waterways is comparatively recent, and its development has led to the discovery of much that is objectionable and requires amendment. It cannot be denied that the so-called British owner is largely merely an agent for Chinese, and that his control of the launches flying the British flag and registered in his name is quite inadequate. At the same time these launches, when not towing, carry passengers about the delta who are engaged in trade, and, when towing, are assisting the movement of merchandize. They thus have their part in the general trade of Canton, the delta, and the West River, of which the British share is very considerable.

Piracy. It is obvious that, if there were not a general state of disorder and lawlessness in Southern China, the repeated piracies which have always existed, and which have obtained more prominence since the year 1897, as they now affect the foreign shipping permitted under 3, would not exist. They must and do bring great injury to trade, and if the use of the foreign flag is instrumental in securing their suppression it will be to the benefit of foreign and native commerce. In the absence of foreign pressure, the right to exert which is mainly afforded by the use of the flag, serious action by the local authorities is not to be expected. If the British flag is withdrawn, launches will be driven to the use of that of other Powers less particular, less disinterested, and having less power of Consular and judicial control than that possessed by the British Consul-General.

Chinese Measures for Suppression. It is submitted that, if the Provincial Government is compelled to acknowledge its liability to pay compensation in the case of every piracy on British launches; this responsibility will go a long way towards spurring on the local officials to eradicate the disease. Continued and energetic action by the civil and military officials on shore is a sine qua non, and, in addition, an effective patrol along the waterways is an absolute necessity. Neither will, it is submitted, be achieved unless there is some foreign control, and it has been decided that this can best be secured by the employment of suitable cruisers under the Imperial Maritime Customs. The number promised by the Wai-wu Pu, four, is inadequate, but is a move in the right direction. If the patrol is constant and effective, it should not fail to be productive of valuable evidence pertaining to the movements and whereabouts of the pirates and to the energy or otherwise of the local authorities on shore and afloat.

Control of British Launches.—His Majesty's Consul-General has already reported how in his opinion this can best be secured, and particulars of his recommendations have been given to Commander Majendie, R.N. There seems no reason to doubt that, if the powers requested were given him, there should be no great difficulty, due discretion being exercised, in weeding out the good from the bad.

Canton, November 15, 1907.

I have, &c. (Signed)

R. W. MANSFIELD.

Inclosure 14 in No. 1.

Memorandum by Mr. Sly respecting the Registration of British Launches plying on the Canton Waterways and the use of the Flag.

1. Registration.-Authority to register, the result of representations made by the Chinese Government to His Majesty's Minister aiming at this end, was given by Sir N. O'Conor in 1886.

2. Flag. Authority to use the red ensign came from Sir Claude MacDonald in 1898, who gave it as his opinion that its use must have been contemplated when the authority to register was given.

(No. 61.) Sir,

Inclosure 15 in No. 1.

Consul-General Mansfield to Sir J. Jordan.

Canton, December 3, 1907. IN continuation of my despatch No. 60 of the 1st instant on the subject of the suppression of piracy in these waters, I have the honour to report as follows :—

I telegraphed to you on the 30th ultimo, No. 63, that I was that day informing the Viceroy, at the Admiral's request, that the extended British patrol of the waterways would be inaugurated this week.

Sir Arthur Moore has already furnished you with copy of his despatch to me of the 29th November, on which my telegram No. 63 was based (see his Excellency's despatch to the Secretary of the Admiralty, Inclosure 8, copy of which reached me to-day). I merely forward, then, copy of the Chinese version submitted to the Viceroy.

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