At present no steamers have wharves and all anchor in the stream, so that the fact that the whole river frontage below the bridge on the right bank is Japanese-owned does not much prejudice British shipping, but as there are many places where wharves could be readily made by Japanese, British ships would then be at a great disadvantage if they had not also wharfage room. Japanese steamers trading to Antung are at present ships of some 300 tons, chartered by Chinese, and the ship-owners would probably not be able to afford to buy land for wharfage. But public wharves may be constructed. Or, again, an influential Japanese Company with capital would have the opportunity, if it so chose, to drive British shipping off the river.

I understand from Mr. George Shaw, who does some business for Messrs. Butterfield and Swire at this port, that both that firm and the Chinese Engineering and Mining Company have requested him to inquire as to the possibility of obtaining suitable sites for wharfage.

Question calls for Immediate Action.

Immediate action is necessary if anything is to be done to endeavour to obtain a drawbridge in lieu of a fixed bridge, as Japanese operations are likely as already stated to commence at an early date.

Further local enterprise and trade development is being much checked by the doubt as to the construction of the bridge.

The Taotai says he proposes to construct roads and raise the land situated between the Japanese Settlement and the Chinese City, and hopes that this will ultimately be the area where foreigners will reside from choice. If the land is properly raised the site would be an excellent one for business purposes, but at present the land is low-lying and useless unless considerable expenditure is incurred in raising and improving it. It would, however, be a waste of money to attempt to improve the land, if it is to be finally cut off by a bridge from its natural commercial development.

The Commissioner of Customs informs me that he has been recommending to the Taotai to build wharfage along the river front of this area, and suggests that ships should be allowed to come alongside there on payment of certain wharfage dues. If the Taotai is not ready to undertake this work then the Commissioner of Customs thinks that the next best thing would be that the frontage should be sold to Messrs. Butterfield and Swire, who would be likely to find the capital to carry out the work. Here again the whole question hinges on that of the bridge.

If it is finally decided that the bridge is to be a fixed one, then it will be necessary for British shipping firms to come at once to the best terms they can with the Japanese to obtain wharfage facilities.

Conclusions and Course of Action recommended.

So far as British shipping interests and British trade generally at Antung are concerned the fixed bridge constitutes a serious menace to development.

As regards the general and natural development of the newly-opened Treaty port for international trade, a fixed bridge will be a heavy drag on natural progress.

The revenue collected up to the present by the Imperial Maritime Customs since the opening of the port amounts to some 120,000 taels, which is half as large again as the amount estimated for. Already the revenue exceeds considerably that of other ports in China, which have now been opened for a considerable time. This fact seems to indicate that given favourable conditions there is likely to be a future for Antung in respect of international trade.

The Japanese idea of a fixed bridge seems to be largely prompted by the ambition to obtain thereby paramount trading advantages and to eclipse competition.

Such a course of action will naturally recoil to the eventual disadvantage of Japan, as she will not have the capital to develop the place herself, and she will stifle the natural development of trade from which she would obtain her share.

For these reasons it is very desirable that it should be represented to the Japanese Government officially that the British Government considers that a fixed bridge is not at all in the interests of the trade of the Treaty port, and that a drawbridge would equally serve the purpose of the Japanese or a site for the bridge at a point further up the river. As far as the strategic question is concerned due allowances could be made to safeguard them.

Proposed General Settlement

CITY OF ANTUNG AND NEIGHBOURHOOD.

Proposed General Settlement.

[Japanese Railway Land

PROPOSED YALU BRIDGE

(F.O. 22842/68. 1094) F. 9. 2842 h.-3

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