This Document is the Property of His Britannic Majesty's Government.
AFFAIRS OF CHINA.
C.0. 20024 [May 13.] 6 JUN 08 651 CONFIDENTIAL. [16614] No. 1. SECTION 1.
China Association, Shanghae, to General Committee.--(Communicated by Sir C. Dudgeon (China Association), May 13, 1908).
Dear Sir,
Shanghae, April 10, 1908.
I HAVE now to inclose a Memorandum giving details of an interview with Mr. Rockhill, United States' Minister in China, who has just returned from the States. I also inclose an article from the "North China Daily News" on the question of Japanese policy in the East.*
There is little doubt that the trend of Japanese policy in Manchuria is to assert a privileged position there more openly than has been the case in the past. It is evident that as time goes on their hostile attitude towards foreign trade and also towards Chinese development of the resources of the province cannot but result in arresting all progress; and if the Japanese are allowed to continue this policy later on it will be futile to maintain that she is adhering to her pledges about the open door.
What Mr. Rockhill says about the Russian attitude appears to us here to be quite sound. It is evident that Russia will only be too glad to give Japan every encouragement to assert exclusive rights in Southern Manchuria, by claiming herself exclusive privileges in Northern Manchuria, with the object of creating friction between Japan and the Western Powers interested in the China trade.
The Japanese are feared in China, but there is a great change in the attitude of the Chinese towards them; they are distrusted on all hands, and it is quite clear that they are not incurring all this unpopularity without good reasons. They probably intend to establish themselves firmly in the north, and to trust to their strong position to break down any opposition to their trade. Perhaps the most serious step taken so far is their claim that the railway zones represent definite Concessions and are to be administered as Japanese territory, which, of course, means that Japan will control the whole foreign trade of the portion of Manchuria served by the South Manchurian Railway. Opposition to the Fakumen Railway is a natural development of this policy; but whether the Japanese will be wise in throwing down a challenge to all those interested in Manchurian trade and its development is another matter.
The well-informed correspondent of the "North China Daily News" in Tôkiô, who, we understand, is in the confidence of the leading Japanese statesmen, telegraphs on the 6th instant as follows:--
"In reference to the question of jurisdiction in Manchuria, the authorities assert that the railway zones correspond with exclusive Settlements in open ports. They cannot be held to clash with the doctrine of equal opportunities, inasmuch as the Chinese Eastern Railway Convention was not an international Treaty in the broad sense of the term, and does not admit of the most-favoured-nation treatment."
The inclosed article in to-day's "Daily News" deals with part of this question, but, in connection with it, it may be observed---
1. That there are no exclusive Settlements in open ports.
2. That in all open ports absolutely equal opportunities of trade are enjoyed by every one.
3. That the railway zones are here practically admitted to be opposed to equal opportunities.
4. That the Chinese Eastern Railway Convention was denounced by Japan before the war, and was one of the main causes of the war.
5. That the Convention cannot override the rights of other Treaty Powers in China.
6. That most-favoured-nation treatment has been definitely granted by China, and cannot be withdrawn by agreement between her and Japan or between China and any other Power.
[2960 n--1]
* Not printed.