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

AFFAIRS OF CHINA.

CONFIDENTIAL.

C.O.

32

[March 15.]

12195

SECTION 1.

Rece REG No.

APR OC

[9784]

(No. 83.) Sir,

Sir E. Goschen to Sir Edward Grey.-(Received March 15.)

Berlin, March 10, 1909. I HAVE the honour to inclose herewith a précis of an article by Dr. A. Paquet, which appeared in the "Frankfurter Zeitung" of the 7th instant, on "The Increase of Chinese Power în Mongolia." Dr. Paquet is a young writer of some note who has travelled in the parts of Mongolia and Manchuria mentioned in his article.

This précis has been drawn up by Mr. Sampson, Archivist in His Majesty's Embassy.

I have, &c. (Signed)

W. E. GOSCHEN.

Inclosure in No. 1.

Précis of Article in the "Frankfurter Zeitung" of March 7 on “The Increase of Chinese Power in Mongolia," by Dr. A. Paquet.

IMPORTANT Chinese colonial questions are silently approaching their solution. In spite of Japanese and Russian aspirations in Manchuria, Chinese power is con- tinually increasing in that country. The audience of the Dalai Lama in November 1908 demonstrated the powerful position of the Chinese Emperor, and perhaps assured the failure of both Anglo-Indian and Russian attempts to acquire political influence. In a similar way since the great war the position of the Chinese Emperor in Mongolia has been strengthened. The means at China's disposal are the inexhaustible numbers of her population; and to send coolies and farmers to these thinly populated districts to almost any extent costs the Peking Government only the slight trouble of sending Edicts to the Governors of provinces from which the greatest number of Chinese emigrate. In only a few urgent cases is financial aid

necessary.

In the last three years there has been such a movement which appears to be of a durable character. Recently the Chinese Settlements have spread further westwards in the Ordos steppe. An army alleged to contain 40,000 men was placed in the course of the last two years near Urumtsi and the old boundary fortresses of Kulja and Bulun-tokoi were strengthened. Also in the north of the Gobi the sudden activity of the Governors of Kobdo and Uliassutai have greatly troubled the Russian Consuls in Uliassutai and Urga. The Chinese Resident in Kobdo, in his Report of last year, says that he has instructed the officials in the ways and means of extending the Settlements; all settlers, whether Mongols, Chinese or Kirghese, are to be assisted by the authorities; the mineral treasures of the Altai Mountains are to be exploited by means of Companies which are to be formed. Also in Eastern Mongolia regular Chinese troops are stationed which protect the land of which the Chinese farmers have taken possession, and drive the Mongols still further into the Gobi.

China's efforts in Mongolia are directed against the never-ceasing exertions of Russia to obtain a hold on the land, and also against the independence of the Mongolian Princes. The Russo-Japanese war has for ever shattered the illusion of the insuperable nature of Russian arms. But the relations of Russia to Mongolia are too old and varied for this purely psychological fact to have any considerable effect on them. The danger that threatens the Mongols from Peking increases the already existing bonds between Russians and Mongols. But what is the use of all that against the irresistible advance of the Chinese settlers and merchants? In the period preceding their silent expansion in the Far East in the second half of the last century the Russians lost the opportunity once for all to prepare for the military and economic expansion which was inevitable in those districts. The overland trade of the tea caravans through the Gobi vià Kiachta-Maimachin, which once brought gain to

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