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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[14369]

254

[April 17.]

C.0.

15433

SECTION 1.

No. 1. Pres

LEGP 7 MAY OF

Sir J. Jordan to Sir Edward Grey.-(Received April 17.)

(No. 95. Coufidential.) Sir,

Peking, March 1, 1909. IN continuation of my despatch No. 77 of the 17th ultimo, I have the honour to transmit to you copies of two despatches from His Majesty's Acting Consul General at Mukden relative to the steps taken by the authorities of the Chinese Eastern Railway Company to enforce their system of taxation upon Chinese residents within the railway territory.

A Proclamation, in Russian and Chinese, was posted in Harbin on the 13th February notifying traders that their establishments would be closed by the Russian police if the Municipal taxes were not paid before the 21st February.

The inclosed despatch from the American Consul at Harbin, a copy of which has been courteously placed at my disposal by my American colleague, describes in detail the attitude which the Chinese merchants assumed towards the question and the friction which it has created between the Russian Railway authorities and foreign residents at Harbin who have declined to admit the Russian pretensions to exercise jurisdiction over them.

In a later despatch, which 1 have been allowed to read, Mr. Fisher reports that the Railway authorities had met the Chinese refusal to pay the taxes by closing all the shops and dwellings at Manchuria, Hailar, Bukhadu and Tsitsihar and that Russian soldiers had been posted in front of them to intercept all communication. In Harbin, however, the collection of the new taxes from the Chinese had been suspended. This information is confirmed by Mr. Willis' despatch of the 24th February, which contains the interesting intelligence that the Viceroy is prepared to accept a compromise on the basis that all the railway territory at Harbin which is not required for bond fide railway purposes should be administered by a Municipality organized on international lines.

The French Chargé d'Affaires informs me that his assistance has been invoked by a French firm at Harbin, The French Government, he explained, had some time ago told the Russian Government that while they could not admit the principle for which Russia was contending, they would raise no active opposition until a concrete case occurred, and M. Boissonnae now accordingly considered himself justified in addressing a protest to the Russian Minister on the subject.

The German attitude is the same as the French, as is also that of the Spanish, and the only Power which seems to have tacitly aquiesced in the Russian demand is Austria-Hungary, which has some 600 of its people in Manchuria.

The Russian Minister considered the action of the Railway authorities untenable and welcomes all these protests as tending to strengthen his hands and those of the Russian Minister for Foreign Affairs, who is said to favour the establishment of a Municipality but is unable to effect his purpose owing to the opposition of the Minister of Finance.

I have, &c.

(Signed)

J. N. JORDAN.

(No. 8.) Sir,

Inclosure 1 in No. 1.

Acting Consul-General Willis to Sir J. Jordan.

Mukden, February 20, 1909. IN continuation of my despatch No. 5, Confidential, of the 5th instant, I have now the honour to inclose translation of a Proclamation which was posted throughout Harbin on the 13th instant, by which traders were notified that their establishments will be closed by the Russian police if the municipal taxes are not paid before the

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