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be concentrated at present in the mountainous Dong-Trieu region, north of the delta, between Sept-Pagodes and Quang-Yon, and some apprehension is felt for the safety of the small posts in that neighbourhood.

The remnants of the revolutionary bands from Yunnan are still occupying the attention of the Foreign Legion and "Tirailleurs" in the north-west of the province, near Hoang-Su-Phi, close to the frontier. They have, however, been gradually so reduced in numbers as no longer to present any danger. Although they were joined by a certain number of local tribesmen-"Meos (Chinese Miaotze)"-their total numbers are said now not to exceed 100. The rest have either been killed or have succeeded in escaping separately.

It is believed that Commandant Lecreux, who is in command of the operations, has reported in a very unfavourable sense on the value of the native troops-"Tirailleurs Tonkinois"-under him. That he should have done so would not be surprising. His remarks, however, are not likely to be published, and confirmation of the rumour cannot therefore be expected.

Although it is denied officially that a campaign against the Dê-Tham is necessary at present, every one believes that the Government intends to undertake one shortly. The reoccupation by detachments of European troops of some of the small posts in the neighbourhood of the Yen-thé district, where such a campaign would take place, strengthens this belief.

The numerous assertions in the French press, both at home and in the East, that important military reinforcements were to be sent to Indo-China are now recognized as having been unfounded. All that was done was to hasten the departure of the reliefs, and to bring up the garrison to its full strength.

I have, &c.

(Signed)

T. FF. CARLISLE.

This Document is the Property of His Britannic Majesty's Governmental

AFFAIRS OF CHINA.

CONFIDENTIAL.

[November 14.] 2 DEC 08,

[39617]

No. 1.

SECTION 1.

Sir J. Jordan to Sir Edward Grey.-(Received November 14.)

(No. 432. Confidential) Sir,

Peking, September 29, 1908. IN my despatch No. 381 of the 26th August last, I had the honour to state that the Acting British Consul-General at Mukden had been instructed to proceed to Harbin to arrange with the Russian Consul-General there regarding the administration of the estates of deceased British subjects, and I have now the honour to inclose a despatch from Mr. Willis reporting the result of his mission.

General Horwath, the recently appointed Consul-General, who still acts as President of the Chinese Eastern Railway Company, admitted, it will be seen, that his predecessor, M. Luba, had made a mistake in undertaking the administration of the Macdonough estate, and assured Mr. Willis that in the event of similar cases arising in the future His Majesty's Consul-General at Mukden would be notified so that he might himself assume charge of the administration.

Since my despatch No. 419 of the 16th instant I have had some further conversation with my Russian colleague regarding the position at Harbin, which M. Korostovetz is evidently anxious to regularize. He pressed me strongly for an expression of my views, but I still adhered to the opinion that it was difficult to offer any suggestions of a practical nature until he had come to an understanding with the Chinese as to the interpretation of the 1896 Agreement. I said the only solution that had occurred to me was that possibly a portion of the area might be reserved exclusively for railway purposes, and that the remainder should be converted into an International Settlement, but even this solution would probably not commend itself to the Chinese. M. Korostovetz said the Chinese would object to any settlement of the question short of a total surrender of the land, and as I have no personal knowledge of the local conditions, I promised to consult Sir Alexander Hosie and Mr. Willis, and let him know if they could offer any suggestions towards a solution of the problem.

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

Inclosure in No. 1.

(No. 60.) Sir,

Acting Consul-General Willis to Sir J. Jordan.

Mukden, September 24, 1908. IN accordance with the instructions contained in your despatch No. 25, Confidential, of the 24th ultimo, I proceeded to Harbin on the 16th instant and arranged an interview with General Horwath, the recently appointed Russian Consul-General, on the 18th instant.

General Horwath, who still holds his appointment as President of the Chinese Eastern Railway Company, received me at the office of the Railway Administration.

Having explained to him the details of the Macdonough incident, with which he professed to be entirely unacquainted, I stated that, whilst in view of the absence of a British Consular officer at Harbin I was very grateful for the assistance I had received from the Russian Consulate-General in this instance, I trusted that in the future, as my jurisdiction extended over the whole of Manchuria, he would see his way to notify me in the event of any further cases of a similar nature arising. I would then make arrangements for the administration of such estates.

General Horwath replied that his predecessor, M. Luba, had made a mistake in taking upon himself the administration of this estate. The natural course would have been to notify me, as the nearest resident British Consular official. General Horwath regretted that this had not been done, and assured me that the procedure I suggested would be henceforth adopted by the Russian authorities.

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