[This Document is the Property of His Britannic Majesty's Government.]
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AFFAIRS OF CHINA,
CONFIDENTIAL.
[22065]
(No. 190.) Sir,
C.O.
607
22029
[June 14.]
IRECR
REG 2 JUL 09,
SECTION 2.
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received June 14.)
Peking, May 23, 1909. THE negotiations regarding the status of the Russian railway settlements in Manchuria, the commencement of which I had the honour to report in my despatch No. 149 of the 9th April last, have resulted in the conclusion of an agreement, which was signed here on the 10th instant, and copy of which is enclosed herewith.
As a preliminary to the signature of this agreement an exchange of notes (copies enclosed) took place between Prince Ching and the Russian legation which are, so far as other nationalities are concerned, of more importance than the instrument itself, inasmuch as they formally recognise and safeguard the rights and privileges enjoyed by the subjects and citizens of all the treaty powers on the railway land.
To appreciate this latest development of the question it is necessary to pass its previous history in brief review. It will be remembered that under the agreement of the 5th September, 1896, Russia claimed the right of exclusive administration over the railway territory, and that in practice she exercised this right to such an extent that Harbin became to all intents and purposes a Russian town. The treaty between China and Japan of the 22nd December, 1995, opened Harbin and fifteen other places in Manchuria to foreign residence and trade, and made their status a matter of international interest. This interest, however, the Russian Government was slow to recognise, and it was not until the winter of 1907 that it began to realise the necessity of doing something to meet the objections of China and of some of the foreign Powers, notably the United States. M. Shipov, an ex-Minister of Finance, came to Harbin and spent some months in making an exhaustive study of the question on the spot.
This investigation, however, instead of facilitating the modification of policy desired by the Russian legation here, confirmed him in the belief that the bureaucratic attitude of St. Petersburgh could be maintained in spite of all opposition, and the result was the issue in February 1908 of a set of municipal regulations which ignored alike the sovereign rights of China and the interests of the treaty Powers.
Owing to the conflict of views which prevailed at St. Petersburgh and the change of Russian Ministers here, these regulations remained largely a dead letter until the spring of the present year, when the question was brought to an acute issue by the Russian action in insisting on the payment of municipal taxes by the Chinese, and resorting to various forms of interference with residents of other nationalities. The railway authorities at last recognised that their position was untenable, and General Horvat was sent to Peking to make the present arrangement.
The first thing which strikes one in reading this preliminary agreement is that China has succeed in assorting as a matter of principle her sovereign rights over the So long railway territory, and that is probably all she wished or hoped to achieve.
as that was recognised, she was doubtless content to leave to the Powers the task of settling the details among themselves, knowing that she could always reckon upon support in resisting any exclusive Russian demands.
Russia, on her part, had gained the formal consent of China to a system of municipal government which conforms to a large extent with existing procedure and is no doubt suited to Russian requirements. In this connection it must be remembered that provision had to be made not only for Harhin and other places where there is a large Russian commercial population, but for some twenty other points along the line where the Russian element is almost entirely connected with the railway. Article 6 therefore contemplates that in these smaller places the work of the municipality shall be carried on by a representative elected by the residents.
In the larger centres the machinery is much more complicated and is apparently based upon the Russian communal system. The residents are to elect an assembly
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