This Document is the Property of His Britannic Majesty's Government
564
AFFAIRS OF CHINA.
CONFIDENTIAL.
[12731]
No. 1.
18960
[ApyR18.]
THE ZE MAY 08 SECTION 1.
(No. 59.) Sir,
Sir C. MacDonald to Sir Edward Grey.-(Received April 13.)
Tokió, March 17, 1908.
WITH reference to my telegrams Nos. 19 and 20 of the 10th and 12th instant, respectively, on the subject of the seizure by the Chinese Customs officials of the Japanese steam-ship "Tatsu Maru,” I have the honour to transmit herewith an extract from the "Japan Times" which, Count Hayashi tells me, gives the official view held here on the facts of the case.
It will be observed that the Japanese contend that the ship was lying in Portuguese territorial waters when she was seized and the flag hauled down, and, further, that there was no indication that she had the intention of smuggling the arms which she had on board.
I have had several conversations with Count Hayashi on this subject, and have impressed upon his Excellency the undesirability of taking any action which would unduly humiliate China or increase the present anti-Japanese feeling prevalent throughout the Far East; more especially as such action would compromise the position of those Chinese statesmen whose retention in office is in the interest not only of China but of all foreign countries who have dealings with her.
At an interview I had with Count Hayashi on the 12th instant I reminded him that when we were together in Peking the men now in power, but then holding subordinate positions, Yuan Shi Kai, Lien Feng, Liang, and later, Na Tang, were well known and liked by the foreign community, and it would be most unfortunate at this juncture to weaken the influence they had in the Wai-wu Pu.
His Excellency has expressed himself as entirely sharing this view, and as being anxious only to settle the incident without surrendering the undoubted rights of his Government. The action of the Chinese authorities was, however, quite indefensible, and their explanations of a puerile nature. As an example of this his Excellency mentioned that the reason given by them for hauling down the Japanese flag was that the Portuguese forts might be expected to fire on the ship when passing Macao on her way to Canton, in which case the said flag would be insulted, and they did not wish to embroil Japan with Portugal, whereas they were quite ready to look after any insults to their own flag.
In order to show how ready the Japanese Government were to adopt moderate measures his Excellency stated that they would be most grateful if His Majesty's Minister at Peking, who, he understood, had already been approached by the Wai-wu Pu, could arrange a settlement on the following terms :----
1. The ship to be released.
2. The Japanese flag to be saluted.
3. The Chinese Government to purchase the arms confiscated. The question of demurrage and other minor points could be settled later, and the Japanese Government would undertake to put an end to the export of arms to Macao. He added that they did not wish the officials who pulled down the flag to be punished, as they were only acting under orders.
I asked what was the Portuguese view of the incident. His Excellency replied that, as far as he had been able to ascertain, the Portuguese maintained that the spot where the ship was seized was in Portuguese waters. Their Minister, the Baron de Sendal, was now in Peking, so he, Count Hayashi, had not been able to obtain any very definite information. He told me, however, confidentially that the Portuguese officials in Macao were believed to be very corrupt, and in league with persons desirous of smuggling arms into, but particularly out of, Macao.
"Judging from the last telegram received from Sir J. Jordan, the Chinese Government would appear to be of the same way of thinking.
In this connection I may mention that on the 13th instant I received a telegram from the Commander-in-chief of the China Station, Admiral Sir A. Moore, paraphrase of which I have the honour to inclose, stating that the Viceroy of Canton had approached him regarding the illegal importation of arms into Macao which
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