127

Branco. April 4, 1902.

Sir E. Satow,

No. 102, April 17, 1902.

Sir E. Satow,

No. 207, July 23, 1902.

Sir E. Satow, September 23, 1902.

Sir E. Satow,

Telegraphic, No. 282. October 2, 1902.

4

that he must decline to pursue the subject of delimitation of Macao until he had received further instructions from his Government, to whom he had referred the matter by post. He proposed, however, to take up the question of the modifications which would have to be introduced into the Portuguese Treaty of Commerce in order that China might obtain the right of levying a full 5 per cent. duty on goods imported by Portuguese subjects.

Senhor Branco intended to offer to the Chinese Government—

1. His adhesion to the Protocol.

2. Permission to establish custom-house at Macao to collect duties and li-kin on all imported goods destined for the interior.

3. Additional facilities for collection of the import duty and li-kin on opium.

4. Co-operation in the suppression of piracy on the West River.

In return for these advantages he would ask for—

1. A lease of the Island of Lappa, subject to payment to the Viceroy of Canton of the annual revenue hitherto collected by him in that island.

2. A Concession for a railway from Macao to Canton and Samshui.

On the 23rd July Sir E. Satow wrote that he had been informed by his Portuguese colleague that he had come to an understanding with the Commissioners Na Tung and Juiliang, who had been appointed by the Chinese Government to negotiate with him as regards two points of a draft Convention:—

1. A Concession for a railway from Macao to Canton. 2. Macao to become an "open port" with a branch of the Imperial Maritime Customs established there.

Article 3 of this proposed Convention provided that, until the delimitation stipulated for in Article 2 of the Treaty of 1887 was carried out, Portugal should be free to execute within a zone marked on a map to be attached to the Convention such works as might be considered necessary for the improvement, defence, and prosperity of Macao. This zone included all the islands over which Portugal exercised any degree of control.

Article 4 stated that Portugal would co-operate with China in the policing of the mouths of the West River, would maintain in the above-mentioned zone the means necessary for that purpose, and would extend to the Chinese authorities all the help of which they might stand in need for the protection of commerce and navigation.

Senhor Branco subsequently informed Sir E. Satow that he had been unable to obtain acceptance of the Article which stipulated that Portugal should be allowed to execute port works within a limited zone, in consequence of the opposition of the Viceroy at Canton. He had therefore decided to abandon it, and had proposed instead that a Commission should be appointed to proceed to the delimitation of the dependencies of Macao, in accordance with Article 2, with a proviso that resort should be had to arbitration in case the Commission could not agree. This proposal had likewise been rejected by the Chinese negotiators, and the Minister appealed to Sir E. Satow for his assistance.

On the following day Sir E. Satow accordingly advised the Wai-wu Pu to accept Senhor Branco's conditions, in order to secure Portugal's adhesion to the 5 per cent. Tariff. The Ministers replied that Portugal had no ground for complaint, as the Treaty of 1887 mentioned no limit of time for the appointment of a Delimitation Commission. They urged Sir Ernest to press Senhor Azevedo to content himself with the two Concessions he had already obtained, namely, the Macao-Canton Railway and the establishment of a branch of the Imperial Maritime Customs in the Colony.

It was eventually agreed that no mention of delimitation should be made in the new Treaty, but that the question should be consigned to an exchange of notes. This arrangement was, however, shortly afterwards repudiated. At a further Conference it was decided that an Article should be inserted declaring that the Treaty of 1887 remained binding, and on the 20th September the basis of a draft Treaty was agreed to by the Portuguese Minister, the principal items of which were:—

1. Portuguese adhesion to the 5 per cent. ad valorem duties of Protocol.

2. Establishment of Chinese Customs at Macao.

3. Concession for the Macao-Canton Railway.

The 30th September was fixed for the signature of the Treaty, but in consequence of objections raised by the Japanese Tariff Commissioner and the United States' Consul-General at Shanghae, the Chinese declared that the Concession Article must be excised. Sir E. Satow informed his Japanese and American colleagues that the Treaty would have no injurious effect on their interests.

The instrument was eventually signed on the 15th October. Article 1 simply confirmed the Treaty of 1887. Article 2 provided for the acceptance by Portugal of the increase of the import Tariff stipulated for by Article 6 of the Final Protocol of the 7th September, 1901.

Articles 3-6 provided for the establishment at Macao of a branch of the Imperial Maritime Customs, which should function as at a Treaty port.

Sir E. Satow, No. 300, October 22, 1902.

Senhor Branco informed Sir E. Satow that he had signed an exchange of notes by which China undertook to accord to Portugal the Concession for a railway between Macao and Canton.

The Envoy returned to Lisbon in December 1902.

Sir M. Gosselin, December 16, 1902.

Opposition was raised in the Cortes to Article 3, which provided for the establishment of a delegation of the Imperial Maritime Customs to control the opium trade, which the Opposition chose to denounce as derogatory to Portuguese sovereignty, and the Treaty was not ratified.

Senhor Branco accordingly returned to China, and in November 1904 signed at Shanghae a new Treaty, by which Portugal conceded to China certain facilities for suppressing the contraband trade in opium, and in return was accorded trading rights on the West River. This instrument did not apparently differ materially from the previous Treaty, as Senhor Villaga, who with his colleagues had, when in opposition, brought about the rejection of the earlier Convention, expressed to Sir M. Gosselin the difficulty which the Government experienced in sanctioning in 1905 an Agreement which they had so severely criticized in 1903.

The Treaty has never been ratified.

(Initialled) P. G. J. December 21, 1904.

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