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

46

AFFAIRS OF CHINA.

CONFIDENTIAL.

[32673]

No. 1.

[September 21.]

SECTION 3.

C.O.

37616

Re

Sir J. Jordan to Sir Edward Grey.-(Received September 21.)

(No. 360. Confidential.) Sir,

Peking, August 6, 1908. 15 00:08

I HAVE the honour to report on the course which the negotiations between Portugal and China have taken since my despatch No. 330 of the 21st July was written.

On the 31st July M. Brederode, the Portuguese Chargé d'Affaires, received from the Wai-wu Pu a note in reply to his communication of the 17th July, copy of which I have the honour to transmit to you herewith.

This note, after repeating their former contention that the stationing of Chinese troops at Vong-cam and other places could not be considered a violation of Article 2 of the Treaty of 1887, went on to state that China was the original lord of the soil, and that with the exception of Macao, which was subject to the procedure applicable to leased territory, the rest remained under the jurisdiction of China.

The passage is somewhat obscurely worded, but I think there can be no doubt that it is susceptible of the above interpretation, and having regard to the past history of the question it is not improbable that the ambiguity is an intentional attempt to reassert the vested interest in Macao, which, as Sir J. Walsham's despatch No. 76 of the 9th November, 1887, so clearly shows, China abandoned with great reluctance when she concluded the Treaty of the 1st December of that year.

Feeling that the passage as it stood struck at the roots of the 1857 Treaty, I advised M. Brederode to insist upon its removal or modification before proceeding further with the negotiations, and as he experienced some difficulty in dealing with the matter himself I consented to undertake it in the first instance unofficially myself. Mr. Campbell, Chinese Secretary to the Legation, accordingly called at the Wai-wu Pu on the 4th instant, and in explaining fully to the Grand Secretary, Na Tung, the objectionable nature of the statement conveyed to him from me a friendly suggestion for its withdrawal.

His Excellency thanked Mr. Campbell for calling his attention to the matter in an informal way and promised to consider the suggestion and let me have an early reply.

As illustrating the preparations which are being made for eventualities at Macao, I beg to inclose an extract from a private letter which recently reached me from Mr. Porter, of the Canton Consulate-General, who had been spending a few days in the Portuguese Colony.

The presence of a large number of Cantonese in the Government here, who have an intimate knowledge of Macao and its past history, militates, I fear, against an amicable settlement of this long-standing dispute at present.

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

Inclosure 1 in No. 1.

Prince Ching to M. Brederode.

(Translation.)

Sir,

Kuang Hsü, 34th year, 7th month, 4th day (July 31, 1908).

I HAVE the honour to acknowledge the receipt of your Excellency's note to the following effect:

[Note of the 17th July, quoted in full.]

In a former despatch from this Board, Baron Sendal was again requested to take note of the following statements :-

Heng-ch'in Island (Vong-cam) and the other places have heretofore been under the jurisdiction of Hsiang-shan Hsien, and originally troops of defence were stationed

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