This Document is the Property of His Britannic Majesty's Government.
583
0.
2
In the third month of last year (April-May 1907), in accordance with a Memorial containing proposals with regard to frontier affairs submitted by Hsi Liang, the Viceroy of Szechuan, and others, the Board proposed that a sum of 1,000,000 taels should be appropriated from the surplus funds of the Chungking, Chinkiang, and Shanghae customs to meet the initial expenses, and that as soon as the Viceroy and others had decided what sum was required to meet the annual expenses, and had presented a Memorial on the subject, the Board would consider what funds should be appropriated for the purpose.
In the fifth month (June-July 1907), in consequence of a Memorial on affairs in Thibet submitted by Lien Yu, the Imperial Resident, the Board recommended that the sum of 200,000 taels should be provided out of the Szechuan and Kwangtung Salt Gabelle. Both the above proposals were sanctioned by Imperial Rescript, and the authorities were duly informed.
By the Imperial Decree now issued Chao Erh-feng and others are directed to carry out all measures necessary in Thibet, and the Board are required to provide the funds required every year. We must, of course, do our best to furnish the money, but of late the financial situation both in the capital and the provinces has been so bad that if any province were required to furnish the funds it is doubtful whether they could be forwarded by the due date, and the only course is to retain in Szechuan, in aid of this scheme, funds which the province is required to contribute towards the payment of foreign indemnities. Szechuan has to furnish 400,000 taels towards the payment of French and Russian indemnities, and 550,000 taels towards the payment of British and German indemnities. The Board propose that 200,000 taels of the former and 300,000 taels of the latter, 500,000 taels in all, should be held back by the province and forwarded in full to Thibet, in order that the necessary measures may be undertaken without delay. The 500,000 taels which should be contributed every year by Szechuan will be made up out of the revenue of the foreign customs and foreign opium li-kin at Shanghae. Should these proposals receive Imperial sanction, the Board will direct the Viceroys of Szechuan and the Liang Kiang to take the necessary action.
Szechuan has always been considered a rich province, and has been in the habit of assisting other provinces out of her surplus revenue. The present matter concerns the frontiers of Szechuan, and it is clearly the duty of that province to help. If funds prove insufficient, the Viceroy of Szechuan should, in accordance with Imperial instructions, provide assistance in order to strengthen the frontiers.
This Memorial reporting the assignment of funds by the Board is reverently submitted to their Majesties the Empress Dowager and the Emperor.
On the 19th March the following Imperial Rescript was received: "Approved."
AFFAIRS OF CHINA,
CONFIDENTIAL.
感
[14954]
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received May 2.)
T8960
[May 2.] RE
MAY 08
SECTION 3.
(No. 130. Confidential.)
Peking, March 16, 1908. Sir,
I HAVE the honour to report the further progress and final settlement of the case of the steam-ship "Tatsu Maru," which formed the subject of my despatch No. 108 of the 4th instant.
On the 12th instant Liang Ta-jên, one of the Ministers of the Wai-wu Pu, called at the Legation and asked me, on behalf of Prince Ching and Yuan Shih K'ai, if I would approach the Japanese Minister with the view of arranging the terms of an amicable settlement.
I saw Baron Hayashi later on the same day and had an informal conversation with him on the subject, the result of which was that he authorized me to inform Liang Ta-jên of the terms which he was prepared to recommend for the acceptance of his Government. These stipulated for the immediate release of the ship, a salute to the flag in the presence of the Japanese Consul, and suitable reparation for the loss entailed upon the ship and cargo. In return, and as a separate arrangement, Baron Hayashi felt certain that his Government would be willing to co-operate with the Chinese Government in preventing the importation of arms into China in the future.
As regards the arms, Baron Hayashi agreed that their purchase by the Chinese Government might be the best way out of the difficulty.
In communicating the views of the Japanese Minister to Liang Ta-jên, I impressed upon him the importance of securing a satisfactory arrangement for the future, which appeared to me to be a sufficient offset to any drawbacks which the settlement of the present case might entail, and he promised to lay stress upon this aspect of the question in submitting it to the Prince and Yuan Shih K'ai. The same evening he informed me that the Chinese Government was willing to release the ship and salute the flag, but would like to leave the question of demurrage and the disposal of the arms to arbitration. The Japanese Minister telegraphed the substance of these pourparlers to his Government, and on the following day submitted a Memorandum to the Wai-wu Pu, the contents of which are embodied in the inclosed note from Liang Ta-jên to me. The Chinese introduced some slight amendments into the wording of one or two of the conditions, which the Japanese accepted, and the incident is now happily closed.
Sir C. MacDonald's telegram No. 20 of the 12th March will have shown you the moderation with which the Japanese Government treated the question, and their Minister here has fully reflected the spirit of his Government.
Although the matter had little direct connection with British interests, this Legation has had some difficulty in resisting the earnest appeals for assistance which have been made to it by the Portuguese Chargé d'Affaires, who came here daily for advice, and in the end desired our active intervention in obtaining such a modification of the settlement as would bring it into harmony with the views and susceptibilities of the Government at Lisbon. M. Brederode wished in effect to secure an assurance from the Chinese Government absolving the Government of Macao from any intention of encouraging the importation of contraband into China.
This is precisely what the Chinese declined to admit. They stated openly that their justification for the seizure of the vessel was the moral certainty that the arms were intended for Chinese revolutionaries, and that the connivance or culpable negligence of the Macao authorities was a matter of common knowledge. This plea of extenuation was fully admitted by the Japanese Minister, and as evidence that the Chinese charge was well founded, I have the honour to inclose paraphrase of a telegram which I received two days ago from Admiral Moore, in which he describes what passed at his farewell interview with the Viceroy of Canton, and expresses the view that his Excellency should be supported in his endeavour to prevent the smuggling of arms through Macao.
[2960 b-3]