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[This Document is the Property of His Britannic Majesty's Government34965
AFFAIRS OF CHINA.
CONFIDENTIAL.
[36693]
No. 1.
[October 4.]
SECTION 3.
¡RECO
(REG: 25 OCT 09
(No. 335.) Sir,
Sir J. Jordan to Sir Edward Grey.—(Received October 4.)
Peking, September 15, 1909.
I HAVE received information from the acting consul-general at Canton to the effect that the negotiations between Taotai Wei Han and the Japanese consul, who, as I reported in my despatch No. 262 of the 21st July last, were appointed com- missioners in the dispute as to the sovereignty of Pratas Island, are not proceeding in a very satisfactory manner.
It appears that the sole remaining point at issue is the amount of compensation. to be paid to the Japanese owner of the phosphate works, a Mr. Nishizawa. The Chinese and Japanese, however, view his position from very different standpoints; the former regarding him as a trespasser who cannot claim more than to receive the actual value of the buildings and plant, while the latter contend that Mr. Nishizawa's occupation of the island was justified, and that as he is voluntarily making over his establishment to the Chinese Government, he is entitled to be reimbursed for the outlay he incurred in founding and developing the phosphate industry. In these circumstances the sum offered by the Chinese in compensation is totally inadequate from the Japanese point of view.
his post.
Mr. Fox stated that, in the opinion of the Japanese consul, a settlement could not be effected until the arrival of the new Viceroy, who has now taken up
I have, &c.
J. N. JORDAN.
(Signed)
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