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

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Japanese Government that he (Tong-Shaoyi) should open negotiations respecting this question in Tokio, or whether the matter should be discussed in Peking between the newly-appointed Japanese Representative, Mr. Ijuin, and the Wai-wu Pu. Count Komura had decided that the negotiations had better be carried out in Peking. Tong-Shaoyi had discussed the matter informally with Count Komura, and told me that he had informed the Count that the branch line, which the Japanese proposed should be built by China from the Fakumen district to the South Manchurian Railway in lieu of the Tsing-min-tung-Fakumen line, would or would not be acceptable to China, according to how far north above Mukden the said branch line joined the South Manchurian; if it was to be a mere junction line from Fakumen to the nearest point on the South Manchurian, China could not accept it as a substitute for the Tsing-min-tung-Fakumen line, but if it were projected from Fakumen to Mukden, or a point a little north of that place, the solution would be acceptable to China, and in this case he would telegraph to his Government and recommend the acceptance of this solution. A few days afterwards I saw Count Komura and mentioned this proposal to him informally, and he said that he did not think the Japanese Govern- ment would have any objection to the branch line being constructed from Fakumen to Mukden. I mentioned that, in the course of conversation with me, Tong-Shaoyi had stated that he would be prepared to suggest an acceptance of this solution of the question.

On the 2nd instant I entertained his Excellency at this Embassy, and, in the course of conversation, mentioned that Count Komura seemed to look upon his suggestion with favour, His Excellency said that such was the case, and he hoped that on these lines a solution might be arrived at. Major O'Connor, of the Indian Political Depart- ment, who has recently been staying in Tókið, and whose visit has been reported upon in another despatch, had a long interview with Tong-Shaoyi, which, I understand, was of a very interesting description. Their relations, when his Excellency came to India in 1904 in connection with the Phara Mission and Major O'Connor was in charge of the Dalai Lama, were not of the most cordial, and though living on opposite sides of the same street, they never communicated, Tong-Shaoyi resenting the fact that the Dalai Lama was in charge of an English officer, and also resenting the treatment he (Tong- Shaoyi) received in India, which he did not consider was in accordance with his position as Envoy of the Suzerain of Thibet. Here in Tokio they talked over mutual experiences, and their interview was of the most cordial and friendly description.

On taking leave of his Excellency, I said that I hoped his experiences of my country- men in Tien-tsin, and perhaps in India, would not cause him to think less well of us; I could assure him that the feelings of His Majesty's Government towards China were of the friendliest, and that England was watching with the keenest and friendliest interest the efforts which China was making towards reform. His Excellency replied with genuine earnestness and warmth: "No, indeed; bygones are bygones; Sir John Jordan is my dearest friend, and I have many in England; I am looking forward with the greatest pleasure to seeing them again; I am convinced that I shall receive the most cordial treatment amongst your countrymen and from your Government.”

Personally I found Tong-Shaoyi most engaging and sympathetic, and I shall be surprised if his hopes as to his treatment in England are not realized to their fullest

extent.

I am sending a copy of this despatch to Sir John Jordan.

I have, &c.

(Signed) CLAUDE M. MACDONALD.

AFFAIRS OF CHINA.

CONFIDENTIAL.

[43559]

No. 1.

1188

[December 14.]

SECTION 2.

4+JAN 09

Sir C, MacDonald to Sir Edward Grey.--(Received December 14.) (No. 294.) Sir,

Tokió, November 11, 1908. WITH reference to my despatch No. 253 of the 3rd ultimo, forwarding a copy of the Agreement concluded between the Chinese Commissioners and the Japanese Government in regard to telegraphs in Manchuria and the submarine cable from Kwantung Proviuce to Chefoo, which Convention was signed on the 12th ultimo, I have the honour to report that two working Agreements based on this Convention have, after much discussion, been concluded and were signed on the 7th instant.

The Emperor of China's consent being necessary to both Convention and Agree- ments, Mr. Chow, one of the Chinese Commissioners, left for Peking immediately after the signature.

The Japanese press states that it is expected that this assent will be given before the end of the year, and that the Convention and Agreements will come into force on the 1st January next.

Count Komura has promised me a copy of the two working Agreements above mentioned, which I will forward as soon as they are received.

His Excellency thinks that it is possible that the Russian Government may endeavour to obtain the same terms as those accorded to Japan. The latter are admittedly better, in that the terminal rates which the Japanese pay to the Chinese Government are merely nominal, whereas the rates paid by the Russian Administration are considerable.

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I have, &c.

(Signed) CLAUDE M. MACDONALD.

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