This Document is the Property of His Britannic Majesty's Government
357
0.
AFFAIRS OF CHINA.
CONFIDENTIAL.
[38023]
No. 1.
44174
[November
SECTION 7.
3
DEC 08
Sir J. Jordan to Sir Edward Grey.--(Received November 2.)
(No. 411.) Sir,
Peking, September 14, 1908. WITH reference to your despatch No. 333 of the 17th July respecting the visit of Mr. William Gray, representing Palmer's Shipbuilding and Iron Company (Limited), to Peking, in connection with the Chinese naval programme, I have the honour to report that this gentleman arrived on the 18th August, with letters of introduction from the Chinese Minister in London to the principal Chinese officials concerned with this question.
He informs me that he was courteously received by the Viceroy at Tien-tsin and by Tich Liang, the President of the Board of War. The Viceroy told him that a Memorial was about to be presented to the Throne on the subject of the navy, and asked him to wait in Tien-tsin a few days on the chance of his advice being wanted. Mr. Gray was unable to stay longer at that time, as he had an appointment in Peking to see Tich Liang, but promised the Viceroy to return later.
From Tieh Liang he derived no information. Yuan Shih-k'ai, to whom also he had a letter of introduction, declined to make any appointment, on the ground that he was not concerned with the framing of the naval scheme.
Mr. Gray has returned to-day to Tien-tsin to see the Viceroy again.
Of the other representatives of British Companies the most successful—as far as I have been able to observe—has been Commander J. G. Heugh, R.N. (retired), of Beardmore and Co., who appears to have made a very favourable impression on the Viceroy at Tien-tsin. He has, in fact, been informed that the Viceroy's Memorial to the Throne is based upon a scheme drafted by him at the Viceroy's request.
During a recent visit of the Viceroy to Peking, I took the opportunity to make personal inquiries as to the present position of this question. His Excellency said that the Empress Dowager had spoken with him at considerable length on the subject, and, after hearing his views, had promised that his Memorial would be approved without delay as soon as it was presented. His Excellency asked me some questions respecting the various British building yards whose representatives had made proposals to him, and remarked on the difficulty of choosing between firms of undoubted good standing. I suggested that the safer course would probably be to get the best expert advice in London from an independent authority, and mentioned as an example Admiral Sir A. Moore. The Viceroy said he was aware that I had made the same suggestion to the Wai-wu Pu, and expressed himself quite in sympathy therewith.
On the 5th September I had occasion to ask the Grand Secretary, Na Tung, at the Wai-wu Pu, some general questions on the subject. He said that nothing had been settled yet. The whole question of the reorganization of the fleet had been reported on by the Board of Finance and War, and was under the consideration of the Grand Council and the Government Council. The main difficulty was the provision of funds for the permanent maintenance of a fleet. China's policy in war matters had altered. Formerly they used to raise a battalion of troops when occasion demanded, and then disband it when it had served its purpose. This method of procedure often produced disastrous results, as the disbanded soldiers turned bandits, and another battalion had to be raised to suppress them. Under the new order of things, the principle was to The Government had start nothing which could not be permanently maintained. decided to have a fleet, large or small, as soon as the proper financial provision could be made to maintain it efficiently.
Mr. Liang Tun-yen, who was also present, expressed the opinion that the purchase of ships and material would most likely be settled elsewhere than at Peking, and said that he personally favoured the idea of intrusting the whole matter to the highest expert advice that could be obtained.
I have, &c. (Signed) J. N. JORDAN.
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