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attitude. Unfortunately the whole of the district north of the northern district of the International Settlement and the most thickly populated in the whole area is in Paoshan. The inclusion of the Chapei district within the Settlement is equally certain to meet with strong opposition, but so large a portion of the area is foreign-owned that the objections of the Chinese may be less difficult to overcome. It is obvious, however, that the extension now asked for, though it may satisfy the community for a few years to come, cannot possibly be final any more than that of 1898. In course of time a demand for the incorporation within municipal limits of a large section of the Pootung district, with its extensive foreign-owned docks and wharves, is, I think, inevitable, but in the meanwhile the extension now asked for is sufficient for the needs of the Settlement. It should, however, include within its area the whole of the neighbourhood of the North Szechuan road extension, in which numbers of foreign residents are already living, and also the new recreation ground and the rifle range, and the opportunity might be taken to have the Soochow Creek, which harbours amongst its large boating population an unusual number of bad characters, likewise brought under municipal jurisdiction. The ideal extension would of course include as far as practicable all property now owned by foreigners, and, if such an extension could be obtained, it would be possible, as far as Shanghae is concerned, to settle the li-kin question once and for all by agreeing that the Settlement and harbour limits only should be the li-kin-free area.

In conclusion, as showing from other points of view the urgent need of an extension of the present area of the Settlement, I venture to quote the following extract from a leading article in the "North China Daily News" of the 31st March :—

**In 1900, when the extension had been incorporated in the Settlement limits, we had a foreign and native population of 352,050 within an area of 5,618 acres, or 62·6 persons to the acre. Last year the estimated population was 523,000, or 93 inhabitants to the acre, and the population had increased by 47,000 over that of 1906. At this rate of increase in another five years we shall have a population of 758,700, giving a density of 135·05 to the acre. A comparison of these figures with those of other cities may be of interest :----

  Population (1907). Area. Acres. Density. Shanghae 523,700 5,618 93 Liverpool 740,000 17,792 41.6 Manchester 637,000 19,893 32.02 Boston 602,278 24,618 24·47

"It will be seen from the above Table that the Settlement with its present population should have an area of at least 12,000 acres, or more than double its present acreage. In spite of the number of buildings that go up year by year, the average number of persons to each house is steadily increasing, as will be shown by the following Table:-

  1900. 1907. "Foreign residents.. 416 5·8 "Native residents .. 6·88 11·01 "Per house   11

"These figures, especially when the small size of the bulk of the native houses is considered, are extraordinarily high. When it is realized that at the present rate of increase Shanghae in 1912 will have a population of upwards of three-quarters of a million, it must be evident that the time has come when both the Council and the Consular Body should move together for a large extension to the municipal area.”

The Council's letter applying for the extension was laid before the Consular Body at a meeting held on the 2nd instant. It was decided to adjourn the discussion of the question for a fortnight, by which time those members of the Body who desired to do so could communicate with their Ministers in Peking and obtain their views on the subject, I have the honour accordingly to submit the Council's application to your favourable consideration and to request your instructions as to the attitude which I should take up in the matter.

In addition to the Council's letter I inclose a letter from the China Association strongly supporting the proposed extension, a further letter from the Council to the Senior Consul reporting another encroachment by the Paoshan police on the North Chekiang road, and, lastly, a small plan of the Settlements, showing the railway line and the area indicated for the extension.

I have, &c. (Signed)

Sir,

Inclosure 2 in No. 1.

PELHAM L. WARREN.

Shanghae Municipal Council to M. Siffert.

Council Room, Shanghae, May 28, 1908.

I HAVE the honour to inform the Consular Body that a foreign police constable was yesterday assaulted on the North Chekiang road, and an attempt made to secure his arrest, by the native police from one of the small stations recently established on the outskirts of the Settlement.

As is very generally known, this road for a distance of about 300 yards south of the railway station lies along the Settlement boundary, and during the last few months collisions of this character have been not infrequent, a state of affairs which the Council regards as fraught with serious consequences and calling for redress.

The main facts of the case in point are reported in this morning's newspapers with substantial accuracy, and it is not the Council's wish to make any detailed statement in view of the forthcoming proceedings at the Mixed Court. It is, however, to be noted that the two native police who were arrested and detained at the West Hongkew station have been liberated at the express application of the Taotai Wong, the official responsible for their actions. He stated that if they remained in custody the discipline of the remainder of his men would be impaired, and, upon a guarantee for their appearance at Court, his request was granted.

The more general question of police authority in this district, however, became a subject for discussion by the Council, with the result that I have the honour to seek the support of your colleagues and yourself to the proposition that all the lands lying between the Settlement and the railway line be incorporated within municipal limits and made liable to administration under the Land Regulations.

The reasons which the Council adduces for this course may be briefly stated as follows:-

1. The expression, in Article 6 of the Regulations, "on the admission by vote of public meeting of any tracts of land into the limits of the municipal authority" is clear evidence that the situation which has arisen was contemplated when the Code was framed, and the conditions which preceded the extension arranged ten years ago were not more difficult than those which at present confront the community.

2. The nominal boundary of the Settlement on the north is, for practical purposes, obliterated, merely threading its way through continuous house property; and if the authority of the municipal police were exactly limited by this line, the difficulties of detective and patrol work would be almost insuperable.

3. The plan of Paoshan displays how large a proportion of the land in question has been registered under the Regulations, and the fact that it cannot be taxed under similar authority constitutes alike an anomaly and a reasonable cause for complaint on the part of owners of land within the line.

The question as affecting the public health of the Settlement has already been brought to your notice in previous despatches, and there is to be added the serious fact that, in the absence of any authoritative means of road construction or supervision of buildings, the district is growing in a manner which, in view of modern requirements for ventilation, fire protection, and general security, cannot be regarded as otherwise than highly unsatisfactory.

(1905 k~5]

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