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

AFFAIRS OF CHINA.

CONFIDENTIAL,

[762]

No. 1.

388

C. O. 5944

[January 7 2

REGE 18 FEE 09

SECTION 3.

Sir J. Jordan to Sir Edward Grey.-(Received January 7, 1909.)

(No. 563. Confidential.) Sir,

Peking, December 16, 1908. THE 8th Article of the Telegraph Agreement between China and Japan, which was signed at Tokio on the 12th October last, and a copy of which was forwarded to you in Sir Claude MacDonald's despatch No. 253, Confidential, of the 3rd October, provided that detailed Agreements should be made for the working of the Chefoo- Kwantung cable and of the Japanese and Chinese telegraph lines in Manchuria.

These detailed Agreements were signed at Tokió on the 7th November last, and I have the honour to inclose copies of them, which have been courteously furnished to me by Mr. Dresing, who has come here to obtain the Chinese ratification of all three Agreements.

Article 9 of the Working Agreement of the Chefoo-Kwantung cable, it will be noticed, confirms Article I of the main Agreement by restricting the use of the cable to terminal Japanese Government traffic and Chiefoo terminal traffic written in Kana, and excluding all other Japanese traffic emanating from or destined to places beyond China.

The main principle which he had to keep in view in negotiating these Agreements was, Mr. Dresing informs me, that nothing should be conceded which would disturb the fiction still firmly held by the Chinese that the Liaotung Peninsula, though leased to Japan, still remained Chinese territory.

China seems to have made a good bargain from a financial point of view, as she has only to construct 7 miles of the cable, while the remaining 80 miles or so will cost Japan about 180,000 yen (say, 20,0001.). I believe it is still unsettled whether the Kwantung end shall be at Port Arthur or Dalny.

I mentioned in my despatch No. 487 of the 27th October last that M. Korostoretz was waiting for the full text of these Agreements before coming to a decision as to the action, if any, which Russia should take. Mr. Dresing informs me that he has communicated their substance to the Russian Minister, who does not seem inclined to consider their terms such as to justify any demand on the part of Russia, but has not yet given a final answer.

I have, &c.

(Signed) J. N. JORDAN.

Inclosure 1 in No. 1.

Agreement regarding the Working of the Chefoo-Kwangtung Cable.

IN conformity with the provisions of the Telegraph Convention of the 12th October, 1908, between Japan and China, the two Governments have, for the purpose of facilitating the due and proper working of the Chefoo-Kwantung submarine cable, concluded the following Supplementary Agreement :-

ARTICLE 1.

Japan and China undertake, as quickly as circumstances permit after the present Agreement takes effect, to provide a submarine cable between Chefoo (Shantung) and a point in the Kwantung Province within the leased territory of the Liaotung Peninsula, either by restoring the old cable or by laying a new one, in accordance with the stipulations contained in Article 1 of the Convention above mentioned.

ARTICLE 2.

The two Contracting Parties engage to maintain the said cable, at all times, in good working order and condition, and, in case of interruption, to effect repairs as quickly as possible.

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