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

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Kong, whither Taotai Kao will proceed as soon as the Portuguese commissioner is ready, and he can find suitable quarters.

In the meantime the provincial Government have taken part in what looks very like a demonstration against the Portuguese.

On the 21st instant, the day of Taotai Kao's arrival, the Viceroy and Admiral Li proceeded to the newly-selected site of Heungchow (Yeh Li Shan), near Macao, and took part in a formal inauguration ceremony,

As no secret is made of the fact that it is intended that this port shall withdraw such trade as still remains to Macao from that place, its formal inauguration immediately prior to the opening of negotiations for the delimitation of the boundary of Macao is, if the provincial Government are sincere in their desire for an amicable arrangement, to say the least of it, tactless.

There seems, however, very little doubt that the provincial authorities are prepared to insist upon the confinement of the Portuguese within the narrowest possible limits, and it is in anticipation of Portuguese opposition that such efforts are being made to find alternative ports in the near neighbourhood, from the safe security of which a strict boycott can be directed against the Portuguese colony.

The Viceroy is reported to have been delighted with his visit to Heungchow, and to be very sanguine as to its future, but one, at any rate, of his secretaries does not share his Excellency's view, for he informed me that he considered the scheme chimerical to a degree, and that the harbour of Yeh Id Shan was both shallow and inadequately protected.

As Taotai Wu boasts of an education at Greenwich College and London University, his opinion, which coincides with that formed by Lieutenant and Commander Tickell, who recently visited the port with His Majesty's vice-consul, would seem to carry the greater weight.

I have, &c.

HAROLD PORTER.

)

AFFAIRS OF CHINA.

CONFIDENTIAL.

[21503]

C.O.

22029

[June 11.]

RECR Rec 2 JUL 09,

SECTION 1.

No. 1.

Sir Edward Grey to Sir J. Jordan,

(No. 107.) (Telegraphic.) P.

Foreign Office, June 11, 1909. SIR R. HART (see my telegram No. 77, Confidential, of the 27th April). I have received a private letter from Sir R. Hart to the effect that for reasons of health he is obliged to delay and to reconsider his assent to return to his post at Peking; he further states that he has applied for an extension of leave for a year.

He observes that in regard to the succession question, whether acting or substantive, much trouble and friction would be saved by the Chinese wish, whatever its nature, being complied with, provided of course that a British subject is appointed inspector- general.

I am replying that he is already aware of the views of His Majesty's Government in regard to the succession, and am expressing regret at the reason for his application, saying that I shall be glad to know what reply he receives.

If the extension of leave is granted, we shall have to consider whether we can wait until Sir R. Hart's retirement is definite, or whether we should insist on the Chinese Government now carrying out the promise contained in their memorandum of the 19th February, 1908 (see your despatch No. 87 of the 19th February, 1908).

I should be glad if you would furnish me with your opinion on this point. From his present communication I imagine that Sir Robert does not mean to return to China,

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