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

AFFAIRS OF CHINA.

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Red 17 DEC 08

CONFIDENTIAL.

[41491]

No. 1.

[November 28.]

SECTION 1.

Sir J. Jordan to Sir Edward Grey.-(Received November 28.)

(No. 447.) Sir,

Peking, October 12, 1908. WITH reference to my despatch No. 386 of the 1st ultimo, I have the honour to transmit to you herewith copy of a despatch from His Majesty's Acting Consul-General at Shanghae respecting the proposed extension of the International Settlement.

You will perceive that the Consular Body have decided to defer any further action in the matter until the return of Sir Pelham Warren to Shanghae. It is to be regretted, as already indicated in my despatch above mentioned, that a deputation from the Consular Body did not wait upon the Viceroy in the first instance to discuss the matter informally, since the procedure adopted has only led to a flat refusal to entertain the proposal.

As matters now stand, I concur in the opinion of Mr. Wilkinson that the extension of the Settlement will not be obtained unless some counter-concession is offered to the Chinese authorities.

(No. 89.) Sir,

Inclosure in No. 1.

I have, &c.

(Signed) J. N. JORDAN.

Acting Consul-General Wilkinson to Sir J. Jordan.

Shanghae, September 15, 1908. I HAVE the honour to transmit to you herewith a copy of the Minutes of the 13th Meeting of the Consular Body which was held here on the 8th instant.*

The question of the extension of the Settlement came up for discussion at the meeting, and it was decided, at my suggestion, to take no further steps in the matter until Sir Pelham Warren's return to Shanghae. Further correspondence with the Viceroy will, I venture to think, serve no useful purpose until, as suggested by you as the most advisable course in the first instance, a deputation appointed by the Consular Body has waited upon his Excellency and endeavoured to demonstrate to him in person the desirability of an extension.

It is certain that, however convincing our arguments may be, unless a quid pro quo of some kind is offered in exchange, whether it takes the form of a concession on the li-kin question, or on that of the policing of municipal roads outside the Settlement, or the admission of a Chinese Representative on the Council, the consent of the Chinese authorities will be extremely difficult to obtain.

It is for this reason that a personal interview between the Representatives of the Consular Body and the Viceroy appears to be essential to any progress towards a settlement of the question.

I have, &c. (Signed) F. E. WILKINSON.

*Not inclosed.

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