Minister will doubtless have reported to them the fact of your having mentioned the matter to him yourself.

France has received into her army for a long period of military training thirty Chinese cadets to whom she grants special facilities, and if we required the quid pro quo suggested by the Admiralty a contrast might be drawn to our disadvantage. Admiral Sali, whom I met two months ago at Shanghae, expressed his high appreciation of the Admiralty's courtesy in training young Chinese officers, and the Central Government are aware of their obligations to us in the matter.

The Japanese Government, I may mention in conclusion, presented the Empress Dowager a few days ago with a steam-yacht, appropriately named "Everlasting Peace," and they are evidently aiming at having a share in the reconstruction of the navy they destroyed in 1894.

I have, &c.

(Signed) J. N. JORDAN.

C.0.

33035 493

This Document is the Property of His Britannic Majesty's Government.


Page 9

06

[August 24.]

SECTION 5.

AFFAIRS OF CHINA.

CONFIDENTIAL.

[29338]

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received August 24.)

(No. 309. Confidential.) Sir,

Peking, July 7, 1908. I am informed on good authority that when Mr. Rockhill, the American Minister here, recommended to the President the remission of a portion of the Boxer indemnity of 1900, he did so relying on the assurance of Tong Shoa-yi that the money would be expended upon the education of Chinese students in the United States.

Some time afterwards Tong became Governor of Manchuria, and while there he entered into negotiations with Mr. Straight, the American Consul at Mukden, with the view of raising a loan in America on the strength of the sum to be returned by the Government at Washington. The proceeds were to be applied to the development of Manchuria, and Mr. Straight, who was apparently ignorant of Tong's understanding with Mr. Rockhill, claims that the project had the approval of Mr. Taft, who passed through Manchuria on his way to Russia in December last.

The Chinese Government are now reported to have some intention of sending Tsai Chen, Prince Ch'ing's dissolute son, and Tong Shoa-yi on a mission to Washington to convey their thanks to President Roosevelt, and it is believed that Tong will take advantage of the opportunity to urge his loan proposal.

Mr. Rockhill is strongly opposed to the money being diverted to loan-mongering purposes, and will do all he can to block the project.

Strictly speaking, I believe China does not become entitled to the money until some eight years hence, when the United States shall have been recouped by the annual payments under the protocol for the actual outlay incurred in connection with the Boxer outbreak.

I have, &c. (Signed) J. N. JORDAN,

[1905 aa-5

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