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

AFFAIRS OF CHINA.

CONFIDENTIAL.

August [September 7].

SECTION 8.

[31041]

No. 1.

Sir J. Jordan to Sir Edward Grey.- (Received September 7.)

(No. 331. Confidential.) Sir,

Peking, July 21, 1908. IN continuation of my despatch No. 309 of the 7th instant, I have the honour to inclose, in translation, copy of an Imperial Decree appointing the Governor of Fengtien, his Excellency Tong Shao-yi, to proceed to the United States to convey to the President the Imperial thanks for the remission of a portion of the Boxer indemnity.

I understand that the difference between the American Minister and his Excellency Tong as regards the disposal of this money has been satisfactorily arranged, and that it has been definitely decided that it is to be devoted to the education of Chinese students in America. It is calculated, I believe, that the sum will be sufficient to support some 400 students for the whole period covered by the indemnity payments.

Tong Shao-yi's mission to America may conceivably have other objects in view than those disclosed in the Decree. As Governor at Mukden, his Excellency has uniformly endeavoured to enlist American sympathy and support in combating Japanese pretensions, and has never concealed his desire to attract American or British capital to Manchuria. He has more than once told me that he would personally favour the introduction of American or British settlers on the land, doubtless to act as a counterpoise to the large influx of Japanese immigrants. He is not unlikely, therefore, to utilize his visit to America to promote some of the many schemes which he has in view for the development of Manchuria. It may be worth while to recall that his visit to Calcutta two years ago contributed largely to the opium policy subsequently adopted by the Chinese Government, and it will not be surprising if his return to the country where he spent his boyhood leads to results of some importance.

I have, &c.

(Signed)

J. N. JORDAN,

(Translation.)

Inclosure in No. 1.

Extract from the "Peking Gazette," July 20, 1908.

IMPERIAL DECREE.

THE Board of Foreign Affairs has memorialized the Throne respecting the reduction by America of the indemnity due to her, and requesting the appointment of an Envoy to render thanks.

Since America entered into Treaty relations with China, their friendship has always been sincere, and the present act of diminishing the indemnity is an additional evidence of friendly feeling for which We should certainly appoint an Envoy to present Our thanks for this noble thought.

Let the Governor of Fengtien, Tong Shao-yi, be invested with the rank of President of a Metropolitan Board, and proceed as Our Special Envoy to America to express Our thanks.

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