524
C O.
This Document is the Property of His Britannic Majesty's Government.
CHINA TRADE.
CONFIDENTIAL.
[13296]
No. 1.
[April 18]
SECTION 1.
7931
49 MAY 08
Sir J. Jordan to Sir Edward Grey.-(Received April 18.)
(No. 110.) Sir,
Peking, March 4, 1908. WITH reference to my despatch No. 62 of the 3rd February, I have the honour to inclose copy of a Report by His Majesty's Acting Vice-Consul at Antung upon the course of the negotiations which are proceeding between the Chinese and Japanese Governments for the conclusion of the Forestry Agreement referred to in Article X of the China Japan Convention of the 22nd December, 1905.
It does not appear that these negotiations are making any headway. According to a Proclamation issued on the 21st June, 1907, by Major-General Kojima, the Director-General of the Japanese Timber Bureau, an independent Chinese official Company was formed last year to exploit the forests of the Hun Chiang, which is the main feeder of the Yalu River on the right or Chinese side, and this was considered by Japan to be a violation of Article X. A protest addressed to the Viceroy of Manchuria through the Japanese Consul-General at Mukden obtained the dissolution of the Chinese Company, but the injury suffered by Japanese interests before this was accomplished is put forward as a justification for the unusual proceeding on their part of a forced levy at a fixed low price of one log out of every four brought down the Yalu by Chinese merchants and raftsmen.
No doubt the Chinese Government are endeavouring to reduce the effect of Article X as much as they can, but that Article makes it evident that a detailed Agreement as to area and term of Concession, organization of a joint Company, and Regulations for joint working should be concluded as a preliminary step, and the one-sided interference of the Japanese Director-General with the Chinese timber industry on the Yalu, which is one of very long standing, savours of highhandedness.
I have, &c. (Signed)
J. N. JORDAN.
Inclosure 1 in No. 1.
(No. 7.) Sir,
Vice-Consul Russell to Sir J. Jordan.
Antung, February 22, 1908. BEGGING reference to my despatch No. 2 of the 24th January, inclosing a Report upon the course of the negotiations now pending between the Chinese and Japanese Governments regarding the organization of a Company for the exploitation of the Yalu River timber forests, in accordance with Article 10 of the Additional Agreement between Japan and China of 1905, I have now the honour to report upon the past and present measures taken by the Japanese Timber Bureau at this port with a view to forcing a settlement.
I preface the statement with a résumé of what Major-General Kojima, the Director-General of the Japanese Timber Bureau, has said in defence of his action in the course of conversation with myself.
He contends that Japan has been very seriously inconvenienced by the non-fulfilment of the terms of the Agreement, that a number of Japanese merchants had been attracted hither by the prospects of doing business in timber under the Agreement and that, failing the carrying the terms of the Agreement into force, these merchants were placed in a most disadvantageous position.
Further, Major-General Kojima lays great stress on the importance to Japan of maintaining a hold on the forests of the Yalu. He points out that the demand for timber in Japan, always large, is a constantly increasing one. A country in which most of the houses are constructed of timber is likely to require a very large supply of this commodity. The requirements in regard to the policy of colonization in Corea are also heavy. The forests of the Hokkaido are not a sufficient source of supply looking to the future.
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