2

The "Kokunio "considers that the Peking Government is responsible for the original delay in the negotiations owing to political confusion and diversity of opinion among the statesmen concerned, and only awoke to the necessity of a prompt settle- ment when Japan was driven to take independent action. A few weeks then sufficed to adjust the differences of years, for these differences should rather be described as matters for consultation than as matters in dispute. A conflict was

never to be apprehended, but even minor questions by long suspension get on a nation's nerves and acquire fictitious gravity. They have now been disposed of in a spirit of compromise, and the fact of their speedy and amicable settlement outweighs in importance the actual terms of settlement, while the Peking Government deserves praise for not letting itself be diverted from its purpose by the mistaken suggestions of the Chinese people and of foreign journalists. There exist in fact a community of interests between the two countries on nine out of every ten points, on none more strikingly so than on the question of China's integrity, and any action on Japan's part which should imperil China's independence would be a calamity to Japan as affecting her commerce, her national defence, and her general policy. In a later article the Kokumin refers to the large space filled by railway matters in the new agreements. Japan holding the Manchuria Railway had a manifest right to construct and improve its branch lines and perfect arrangements for linking up the whole system, thus subserving the commercial and industrial interests of the world at large no less than of China. The insinuation that Japan's object was to monopolise the Manchurian Railway is unfounded. The Kirin-Hairyong line may indeed look like a new departure, but its construction, as a branch of the Kirin-Changchun line connecting with the Corean system, could not be undertaken by China without consulting Japan.

The "Nichi-Nichi" hails the birth" of these agreements with satisfaction, but, in the light of their conclusion, is inclined to regret Japan's hasty action in the case of the Antung-Mukden railway. It denies the suggestion that Japan is acquiring a monopoly of Manchurian lines, has a word of blame for American press criticisms, a word of praise for the fair comments of English papers, and closes by stating that the causes of ill-will between Japan and China being now removed, it remains to create active good-will between the two Governments and peoples. This construction policy is the one great question still pending.

According to the "Jiji," all must feel that a burden is lifted from their shoulders by the conclusion of these conventions, disposing of the chief outstanding questions, whose pendency has impeded the exploitation of Manchuria's resources, and at times menaced the friendship of Japan and China. The surrender of territorial rights in Chientao is unobjectionable, seeing that the purpose of that claim-namely, the protection of the Coreans-has been achieved; it was, moreover, opportune, in view of the fact that the integrity of China bas for years represented Japan's fixed and immutable policy. The subjection of the Corean residents to Chinese jurisdiction may provoke criticism as an apparent renunciation of Japan's contentions, but the position. is safeguarded by the admission of her consuls to attend in the court and their power, if necessary, to demand a new trial, and, under already existing treaties, Coreans within the new Japanese settlements will enjoy extra-territoriality. Any other solution regarding Chientao would have seemed to China like giving her territorial rights with one hand and withdrawing them with the other. The triumph of the agreement lies in the arrangement for the construction of the Kirin-Hairyong line, and both agree- ments, while perhaps open to objection on points of detail, must be accepted as a subject for congratulation in the cause of Far Eastern peace and prosperity, and will doubtless be welcomed by the world in general.

E. M. H.-H.

September 9, 1909.

C.0.

$2

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

TRESS

AFFAIRS OF CHINA.

CONFIDENTIAL.

[36696]

No. 1.

Sir Edward Grey to Sir J. Jordan.

REG 5 NOVOY

11

[October 13.]

SECTION 1.

(No. 169.)

Foreign Office, October 13, 1909. (Telegraphic.) P.

JAPANESE Railway settlement regulations. Please see your despatch No. 338 of the 18th September.

You made to the Wai-wa Pu a representation as to the proposed regulations for Harbin. This appears to us to apply equally to those which were enclosed in your despatch under reply, and without our previous approval we could not admit them as binding upon British subjects. Objection must certainly be raised to articles 3 and 8. As regards article 8, the house-tax should, we think, be levied upon the value of the property held in the settlement, for arriving at which we may permit inspection of the premises, but not of the accounts.

do

An objectionable interpretation could be placed upon several other articles, but you think that there are any others to which we should raise formal objection ?

[2462 n-1]

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