2
Your Highness's request was duly communicated to, and considered by, His Majesty's Government, who are naturally in full sympathy with any measures which the Chinese Government may see fit to take for the purpose of reorganising finances, and especially for the abolition of li-kin or other fiscal hindrances to the freedom of trade. I am, however, instructed to invite attention to other important stipulations of the commercial treaties, such as reform of the currency and the introduction of mining regulations, which the Chinese Government have not yet carried into effect. In the case of the mining regulations, the limit of time within which they should have been issued has been exceeded by over four years; and I am not aware that any practical steps have been taken for the proper provision or regulation of a national coinage, though it is over five years since China agreed to move in the matter. It is, moreover, a subject of wide and legitimate complaint by foreign Governments and merchants in North, South, and Mid China that paper notes are issued by many native banks without adequate security or Government supervision, and that the minting of Chinese subsidiary coins is so ill-regulated that they are always at a serious discount in the market. As regards these two matters alone, it is evident that, in the interests of a large and increasing trade, domestic and foreign, there has been for some time past sufficient and pressing reason for energetic action on the part of the Chinese Government, aside from treaty obligations, yet I have not heard of any practical measure to relieve the situation. Further, although the declared object of the Chinese Government is to obtain the abolition of li-kin in return for increased customs duties, it is well known that new li-kin stations are being established in North and South China, and that foreign trade is being subjected to li-kin exactions of greater frequency and amount.
His Majesty's Government feel that, while this state of things continues, and while other provisions of the commercial treaties remain unfulfilled, the Chinese Government are scarcely in a position to expect from the Treaty Powers the con- currence and support which will be necessary to secure the object stated in your Highness's notes under acknowledgment.
I avail, &c.
J. N. JORDAN.
C. C. 22375
This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
[18564]
No. 1.
Sir Edward Grey to Mr. Whitelaw Reid.
RECE Reco 5 JUL 09
[May 28.]
SECTION 1.
Your Excellency,
Foreign Office, May 28, 1909. I HAVE the honour to inform your Excellency, with reference to my note to Mr. Ridgely Carter of the 7th instant, that a report has now been received from Sir J. Jordan, His Majesty's Minister at Peking, on the subject of the request of the Chinese Government for support in putting into force the provisions of the commercial treaties of 1902 and 1903 in so far as they deal with the revision of the Chinese customs tariff and the abolition of l-kin.
In this report Sir J. Jordan invites attention to the fact that important stipulations of the commercial treaty of 1902 between Great Britain and China, such as reform of the currency and the introduction of mining regulations, have not yet been carried into effect by the Chinese Government. In the case of the mining regulations, for instance, the limit of time within which they should have been issued has in fact been exceeded by over four years, nor does it appear that any practical steps have been taken by the Chinese authorities for the proper provision or regulation of a national coinage, though it is more than five years since China agreed to move in the matter. It appears also to be a subject of wide and legitimate complaint by foreign Govern- ments and merchants in North and Central China that paper notes are issued by many native banks without adequate security, and that the minting of Chinese subsidiary coins is so ill-regulated that they are always at a serious discount in the market. Moreover, although No practical measures are being taken to relieve the situation.
the declared object of the Chinese Government is to obtain the abolition of li-kin in return for an increase of customs duties, it is well known that new li-kin stations are being established both in North and South China, and that foreign trade is being subjected to li-kin exactions of greater frequency and amount.
Sir J. Jordan has assured the Wai-wu Pu that, while His Majesty's Government are in full sympathy with China in her efforts to reform her finances, they feel that, under present circumstances and so long as other important clauses of the commercial treaties remain unfulfilled, she is scarcely entitled to expect the necessary support and concurrence in this matter from the treaty Powers.
I regret, therefore, to have to inform your Excellency that His Majesty's Government do not see their way at present to nominate a delegate for the purpose of discussing the proposed measures, nor to assist in the appointment of a commission of the nature suggested by the United States Government.
[2274 ce-
-1]
I am, &c.
E. GREY.
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