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studying in Japan," and which is identical with the leaflet referred to above as advocating an anti-German boycott. On this occasion the Governor addressed a despatch to the Chinese Minister in Tôkiô, requesting him to take steps to restrain the students from engaging in such ill-considered political agitation. This despatch, besides being admirably to the point, summarizes so clearly the attitude of the Governor towards the anti-German agitation that I give a précis of its contents below.

Referring to the receipt by post of the anonymous leaflets, the Governor asks the Minister of Tôkió to instruct the Shantung students to devote themselves to their studies, and not to waste their time in useless agitation. His Excellency points out that the Agreement conceding to the Germans the right to work mines in five zones of the province was discussed as early as 1899, but that it was not signed until 1907, after having been minutely criticized by his predecessors and the Wai-wu Pu, and after all the resources of diplomacy and all endeavours to reduce the number of zones to three had been exhausted. As a matter of fact, he adds, the number of zones had since been brought down to one-surely a great advance on the old state of affairs. (This confirms the statement made in my despatch No. 18 of the 29th October, that the German Company to whom the Mining Concessions in the five zones had been granted might possibly confine itself to working the gold mines in the Mao-shan, near Chefoc, and give up the other Concessions, the value of which was doubtful.)

The Governor goes on to say that although the first of the two years allowed for prospecting had not elapsed, yet inflammatory rhyming placards were recently posted in Ling-hsien, Lin-i-hsien, and other districts in the Chinan Prefecture demanding the instant cancellation of the Agreement; and that subsequently the leaflet purporting to be issued by the workpeople of Shantung (inclosed in my despatch No. 18) was distributed in Chi-mo-hsien and in other places under the Independent Department of Kiaochow. All these had been suppressed. But, he complains, the students in Japan are now secretly distributing leaflets proclaiming a boycott against the Germans throughout the province, which leaflets, although they cannot precisely be described as rebellious, yet show a profound ignorance of the matters with which they propose to deal. They state that though the students are living in a far country, yet they think fondly of their ancestral home, and that the wrongs which their country has to suffer compel them to give vent to their exasperation in words. Commenting on this, the Governor says that while he has no fault to find with their patriotism, yet their ignorant and headstrong agitation, far from helping matters, is only making confusion worse confounded.

For instance, they advocate a boycott by peaceful means, whereas the inevitable result of the agitation will be to incite the people against the officials and the gentry and to bring about a universal uprising against the authorities. Last summer the clamour for the preservation of the mines and the railways, combined with the drought and the consequent distress, very nearly led to trouble in several districts.

In the second place, when the students talk of a peaceful boycott have they confidence in their ability to carry it through? As a commentary thereon the Governor refers to his own experiences in Kiangsu, when the local gentry wished to reduce the amount of the foreign loan for the Shanghae-Nanking Railway, and in order to enforce their views threatened to boycott the country concerned; they refused to work for the English, to trade with them, or to make use of the railway. What was the result? They were unable to carry the people with them, and merely succeeded in making themselves the laughing-stock of the foreigners, while at the present day the Shanghae-Nanking Railway is carrying twice as many passengers as were ever conveyed by the German line in Shantung. His Excellency points the moral by observing that it is foolish to talk of not using the railway, and that if any attempt is made to boycott the Germans the bad characters will seize the opportunity to create disturbances, thereby involving the province in international compli cations.

In the third place, the Governor remarks that when the students talk of raising funds to work the mines themselves they are simply exposing their own utter ignorance. They have absolutely no idea of the vast amount of capital requisite before any returns can be shown; contretemps may occur and delay progress, but money has to be continually disbursed until results are finally achieved. And even this can only be attained by those who have devoted their lives to the study of mining as a speciality. China, on the other hand, can as yet boast very few mining engineers ; in addition to which native capitalists cannot be induced to take up any enterprise that does not bring in immediate returns. The students hold meetings in Tokió and

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talk big about raising funds, but it is quite beyond their power to do so; whatever capital they might command would be quite inadequate for the purpose.

The Governor then goes on to point out that an international Agreement cannot be set aside for no reason whatever, at the mere bidding of a crowd of blatant students who know nothing of the negotiations in connection therewith, and who attack it blindly without even having made themselves acquainted with its provisions. They should rather study the rationale of such matters by carefully considering how analogous Agreements have been dealt with. For instance, the Tien-tsin-Puk'ou and the Soochow-Hangchow-Ningpo Railway Agreements were merely drafts, and might justifiably have been set aside; hut there was no adequate reason for doing so, and they were allowed to stand. On the other hand, the Concession for the Hankow- Canton Railway had already been signed, but as the conditions on which it was granted were disregarded by the concessionnaires it was very properly cancelled. From the above it should be clear that such Agreements can be annulled only when there is good and sufficient reason, and not merely because they happen to be regarded with disapproval by a certain section of the community.

The Governor proceeds to remind the agitators that before the advent of the foreigner the people of Shantung, who were steeped in ignorance, had never taken any trouble to develop the resources of their country. No attempt had been made to work the mines owing to superstitious fears connected with Fêng-shui. When the foreigners That began to open mines, then the natives suddenly became cager to do likewise. being the case, why did not some of them make a study of mining and learn to do without the assistance of the foreigner? There were plenty of other mines in the province lying untouched, but his Excellency bad never heard of any attempt being made to work them. Instead of bestirring themselves in a useful manner they merely clamoured for the retrocession of the seven Mining Concessions in the five zones. Patriotism, the Governor adds, he is only too anxious to encourage; but he cannot approve of the students indulging in frothy rhetoric of the type described above, which merely serves to stir up trouble without any corresponding advantages to the cause they had at heart.

He therefore concludes by asking the Minister in Tokio to ascertain whether the anonymous leaflets in question really were published and transmitted by the Shantung students. If this proves to be the case, they should be admonished to devote themselves to their studies, which is the purpose for which they were sent abroad, and to refrain from engaging in immature political agitation. China had quite sufficient difficulties to cope with in the propaganda of the Secret Societies, which were doing their utmost to stir up the people; and although appeals for the preservation of the mines could hardly rank as seditious literature, yet it should be borne in mind that anonymous writings came under the ban of the law, and his Excellency, therefore, hoped that the students would refrain from disseminating them in future.

It is clear from a perusal of the above despatch that the Governor, while professing no particular sympathy for the Germans, or, indeed, for any other foreigners, and while anxious not to discourage any manifestations of genuine There appears patriotism, takes an eminently common-sense view of the situation.

to be no doubt that the policy of upholding the sanctity of duly ratified Agreements is the only one that commends itself to him as consistent with the best interests of the province. In this, as in various other matters he has had to deal with since his arrival in Shantung, his attitude must be described as perfectly correct; and it may be hoped that the sound advice which he has given to the students in Tokio will be duly appreciated and acted upon by them.

I have, &c. (Signed) BERTRAM GILES.

Inclosure 2 in No. 1.

Extract from the "Shuntien Shih Pao" of October 23, 1907, and following days.

Agreement between the Shantung Mining Bureau and a German-Chinese Company.

(Translation.)

THIS Company, which is formed with German and Chinese capital, is an ordinary mining concern, and has nothing in common with the arrangement in the Kiaochow

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