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

C.O.

669

AFFAIRS OF CHINA.

CONFIDENTIAL,

[39618]

No. 1.

7047

[November 14.]

TREET SECTION 523 DEC 08

(No. 433.) Sir,

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

Peking, September 30, 1908.

WITH reference to your despatch No. 288 of the 17th June, in which the question is brought forward as to whether it would be desirable to adopt retaliatory measures in British Concessions, in view of the conditions imposed upon alien lot-holders in German Concessions, I have the honour to inclose copies of despatches from His Majesty's Consuls-General at Hankow, Tien-tsin, and Canton, to whom I had sent a copy of your despatch with instructions to express their views upon this subject.

These reports appear to show conclusively that we should gain nothing by imposing conditions which would debar aliens from purchasing lots in British Concessions. At Hankow and Tien-tsin such a policy would result in developing the German Concession at the expense of the British, while at Canton the restriction would be prejudicial to our commercial interests.

I would suggest therefore that if the German Government do not see their way to bring their Regulations into accord with ours, we should not debar their nationals from purchasing lots in our Concessions for commercial purposes, under conditions now existing. As stated by the Acting British Consul-General at Tien-tsin, it is generally understood that the German communities desire to have their rule altered, and it appears to me that no further action is necessary on our part than to inform the German authorities, when occasion arises, that British subjects cannot be allowed to bind themselves by the conditions set forth in the German Concession leases.

I have, &c. (Signed)

J. N. JORDAN,

(No. 53.) Sir,

Inclosure 1 in No. 1.

Consul-General Fraser to Sir J. Jordan.

Hankow, September 2, 1908.

I HAVE the honour to acknowledge the receipt of your despatch No. 94 of the 14th ultimo, inviting my views on Sir E. Grey's inquiry whether, in case the German authorities persist in exacting conditions which debar British subjects from acquiring property within the German Concession, it would be desirable to retaliate by refusing sanction to German purchases in our Concession.

The title-deed, as amended in 1872, under which most of the lots in our original Concession are held (copy inclosed),* would seem to preclude such retaliation; but the title-deed for extension lots, the wording of which has been adopted for Concession lots whose owners have recently applied for relaxation of the original prohibition of transfer to other than British subjects, gives His Majesty's Legation absolute discretion to prevent any transfer to an alien.

I submit a list showing which lots in the Concession are still held under the original form of title-deed, though Sir H. S. Wilkinson, early in 1905 (see Inclosure No. 3), doubted whether we could refuse to add the 1872 proviso to these; which lots can be transferred to aliens without Legation sanction—the Foreign Office instruction of the 5th August, 1900, appearing from Sir E. Satow's despatch No. 15 of the 2nd September, 1901, to be only temporary—and which lots require that sanction before transfer to other than a British subject.

My object in raising the question of the German conditions was to obviate any doubt as to my refusal to comply therewith being due to individual opinion or prejudice, a view which my predecessor's apparent acceptance of those conditions and similar acquiescence at Tien-tsin might seem to justify. I venture to suggest that, once this

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* Not printed.

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