[This Document is the Property of His Britannic Majesty's Government.] 107
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2
fixing the landowner's share at a definite proportion of the profits in all cases. landowner is to be considered as a shareholder, as the tenour of the proposed Regu- If the lations implies, he should share losses as well as profits.
CHINA TRADE.
CONFIDENTIAL,
Page 18, Section 22.-Transference of permits which is here prohibited should be allowed, provided that the transferee gives the necessary references.
Page 20, Section 25.-The duration of the prospecting permit (one year renewable for six months) is unnecessarily short. It may be noted that Mr. Cockburn's draft Regulations provided for a three years' permit, renewable for two years on payment of half the original fee.
Page 23, Section 33.-The amount required as guarantee appears reasonable, but the conditions of its forfeiture (breach of any of the Regulations) are absolutely unacceptable.
Page 38, Sections 72 and 73.-The discretionary powers here given to the Mine Deputy are such as might be mischievously used.
In view of the foregoing considerations, and more especially of the wholly unacceptable nature of the provisions on pp. 30-35, sections 45-63, regarding law and jurisdiction, the Board have been glad to learn from Sir J. Jordan's further despatch (inclosed in your letter of the 28th ultimo) that he has lodged a strong objection to these proposed Regulations on the ground of their being contrary to existing Treaty rules, and not constituting in any way a fulfilment of China's pledge under the 1902 Treaty.
I am, &c. (Signed)
ARTHUR WILSON FOX.
[5125]
Sir,
No. 1.
[February
+4 MAR OS:
SECTION 2,
Board of Trade to Foreign Office.—(Received February 14.)
Board of Trade, February 13, 1908. I AM directed by the Board of Trade to acknowledge the receipt of your letter of the 28th ultimo, transmitting print of a despatch from His Majesty's Minister at Peking respecting the issue of exemption certificates by the Customs authorities at Newchwang and other ports in respect of duty-paid foreign goods destined for the newly-opened trade markets in Manchuria.
In reply, I am to say that, in so far as the Board are able to judge from the information at their disposal, the Regulations under which it is proposed that these certificates shall be issued appear to be on the whole of a satisfactory nature.
The Board observe, however, that the limit of time within which the certificates should be returned duly stamped to the port of issue, viz., two months, is the same for all the ports referred to in the Regulations, and they venture to think that this provision may possibly operate somewhat unfairly in the case of goods which are dispatched from Tien-tsin, which is situated at a considerably greater distance from the internal trade markets of Manchuria than Newchwang.
I am accordingly to suggest that, if Sir E. Grey sees no objection, His Majesty's Minister at Peking might be asked to consider whether it would not be desirable to approach the Chinese Government with a view to obtaining an extension of the time limit allowed for the return of these certificates to the port of Tien-tsin.
A further point upon which the Board think that it might be desirable to obtain Sir J. Jordan's views is whether the same facilities for the dispatch of goods to Manchuria, which are now granted at Newchwang and Tien-tsin, should not also be given at Chinwang-tao in view of the growing import trade of that port shown in the Chinese Customs return.
I am, &c.
(Signed)
GEO. J. STANLEY,
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