2

has during the past year entirely reformed its methods, and is now at least equally as efficient, if not more so, than the Chinese Administration. Capable postal officers have been appointed at the larger centres, and large sums have been spent on the building and equipment of post-offices at Newchwang, Liaoyang, Mukden, Tiebling, and Kuan- chengtsu, the towns in which the Chinese post-offices feel their competition most keenly.

The Chinese Administration is at a considerable disadvantage in that it is forced to hand over its mails to Japanese offices for conveyance in the case of all places fed by the South Manchurian Railway, for naturally over lines of communication in their own hands the Japanese service can command greater dispatch than the Chinese post, which has to hand over and receive mails at times fixed by the Japanese.

Further, the Japanese post-offices have declined to receive Chinese parcels as mail matter, and consequently the parcels have hitherto been handed to the South Manchurian Railway, who have transmitted them at ordinary freight rates. Recently the Railway has declined to carry parcels at freight rates, and have demanded a special parcel rate at an advanced charge of 90 cents per picul per 100 miles. The Postal Commissioner has protested against this charge, but hitherto, I understand, with no

success.

As regards the carriage of international mail matter, the arrangements as reported in my previous despatch still continue in force. The Chinese authorities have, however, for the past six months been engaged in negotiating an Agreement with the Russian Post Office at Harbin, under which incoming mails should be handed to the Chinese Administration at Harbin instead of as at present to the Japanese post-office at Kuanchengtsu.

Mr. Watson, the Postal Commissioner, informed me to-day that an Agreement to this effect had been signed, and under it the Chinese post has the right of running a postal car over the Chinese Eastern Railway system.

Mr. Watson, to whom I am indebted for most of the material of the present report, has asked that any information he may have given me may be treated as confidential.

I have, &c.

(Signed)

R. WILLIS.

140

C.O. 13950

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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[12449]

No. 1.

Race 24 APR 09)

[March 30.]

SECTION 1.

Question asked in the House of Commons, March 30, 1909.

Earl Winterton,-To ask the Secretary of State for Foreign Affairs whether His Majesty's Government have received official notification that China has addressed a formal despatch to the Japanese Minister in Peking asking that the whole of the Manchurian question shall be submitted to The Hague Tribunal; whether they have received official advice that the Japanese Minister is endeavouring to induce China to withdraw this despatch; and, if this is the case, do His Majesty's Government propose to take any steps in the matter, and are they prepared to instruct His Majesty's Minister in Peking to support China in this demand.

Answer.

His Majesty's Government have received no notification on the subject either from China or Japan, though I understand that the Japanese Government have declined to submit to arbitration certain questions connected with Manchuria. I do not see on what ground His Majesty's Government can intervene in the matter.

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