C.O

[This Document is the Property of His Britannic Majesty's Government.1859

6

But a further point must also be taken into consideration, namely, that in small ports it is, generally speaking, preferable that the foreigner should be able to settle anywhere within the treaty limits, wherever it may suit him, and wherever he thinks he may be best able to carry on his business. The principle of an international settle- ment in the midst of a Chinese population is certainly the right one for great commercial centres boasting of a large foreign community and rich resources of revenue, but what is suitable for large places would mean, in the case of ports with but a small European colony, a heavy burden, if not actual ruin. it seems to me hardly probable that the Chinese Government would finance a settlement of that kind, and the consequent expenses, which would have to be borne by the few foreign residents, would not be proportionate to the advantages to be derived there- from, Besides, in Newchwang, conditions, in the matter of lighting, water supply, police. &c., are improving daily even under the present Chinese administration. The condition of the streets is moderately good, the police is, generally speaking, satisfactory, works for the supply of water and electricity exist, &c. An international settlement could only be made a practical proposition if one were able to attract a considerable number of wealthy Chinese into the settlement. But, apart from the difficulty of doing so, such an experiment would be rather daring. As regards foreign firms, there are at present in Newchwang only seven British, two Russian, and two Gerinan.

The advocates of an international settlement at Newchwang are fond of adducing the argument that the Japanese railway settlement may eventually encroach on the territory at present inhabited by the foreign residents. But the Japanese have decreased in numbers owing to their having moved to other ports, and many buildings in their settlement are now empty. Now that the Japanese Government has realised that it is impossible for them to relieve themselves of the undesirable elements of their popula tion by endeavouring to make them settle in Manchuria, there need be no fear of an invasion of the treaty ports by these people, and anyhow it would be hardly possible to forbid the Japanese entry into an international settlement.

In conclusion, I would like to point out that, if an international settlement is created, the conservancy of the Liao River will become more or less an international question. We shall be hound to support the settlement, and consequently shall be compelled to ensure its continued existence by keeping the river in a navigable condition. Whether this is practicable, and whether it is worth while in view of the circumstances, seems to me at least doubtful.

Mukden, June 3, 1909.

DR. HEINTGES.

AFFAIRS OF CHINA,

CONFIDENTIAL.

[31369]

No. 1.

Rece

Rece 25 SEP 09

[August 20.]

SECTION 1.

dy%

Sir J. Jordan to Sir Edward Grey.-(Received August 20.)

(No. 269. Confidential.) Sir,

Peking, July 26, 1909. THE provisional trade regulations for the navigation of the Sungari, which were recently issued by the Chinese customs authorities, and of which a copy is enclosed herewith, have given rise to some difficulty between the Russian and Chinese Govern- ments, and have formed the subject of a formal protest which the Russian Minister has addressed to the Wai-wu Pu.

It will be remembered that by the Aigun treaty of 1858 the navigation of the Amour and Sungari rivers is reserved exclusively to Russian and Chinese vessels, but Japan, I understand, claims that this exclusive privilege has been modified by the various agreements which have been concluded since the Russo-Japanese war. The agreement of 1905 between Japan and China opened Harbin and Sansing on the Sungari, and Aigun on the Amour, to the residence of foreigners and foreign trade, and it was presumably intended that the trade to these places was to be carried on in foreign vessels. Under this treaty and the inland navigation rules of 1898 the Japanese claim would seem to be well founded.

The Russian Minister, however, informs me that his Government are not disposed to accept the view that the Aigun treaty has been modified by recent events. Japan put forward her claim to the navigation of these rivers at the time the commercial treaty of 1907 was negotiated at St. Petersburgh, but the only result of a considerable correspondence which passed between the plenipotentiaries on the subject was that the question remained quite unsettled.

M. Korostovetz holds that under the treaty and trade regulations of 1881. Russia should have been consulted before these provisional regulations for trade on the Sungari were issued, and he is inclined to suspect that Japanese advice has had something to do with their issue. However that may be, he has protested against their application to Russian vessels, and I understand that they are not at present being enforced.

(Copy to Tokyo.)

0

I have, &c.

J. N. JORDAN.

Inclosure in No. 1.

Provisional Sungari Trade Regulations.

General Rules.

1. VESSELS and their tows are divided into two categories :—

(a.) Vessels trading in the Sungari River only between the open marts of Harbin and Sansing or between these marts and places on the Amour River. These vessels and their trade will be dealt with on the general principles applicable at treaty ports on the rivers in China as regards payment of duty, &c.

(b) Steamers carrying on trade between marts and inland places not opened as trade marts, e.g., Hsingtien, &c., under inland waters steam navigation rules. These vessels and their trade will be dealt with according to the principles applicable to similar trade in China proper. When they temporarily leave the Sungari River for Amour ports their inland certificates must be surrendered at the Lahasusu controlling barrier of the Sansing customs pending return to the Sungari.

2. Customs officers will board vessels entering and inspect them after clearance outward; they may claim access to any part of the vessel at any time during her stay in port.

[2391 u-) -1]

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