:
C. O.
4
compromise, in my opinion, is one by which the taxes raised on the trade of the port would be devoted entirely to the work at Duck Island and the bar, the Provincial Government defraying the cost of the upper river improvements. Such an arrange- ment would meet to a considerable extent the objections of the Japanese, for it is impossible to deny that the protection of the bank at Duck Island and the deepening of the bar are works for which the trade of the port may very fairly be called upon to pay.
I have, &c.
F. E. WILKINSON.
[This Document is the Property of His Britannic Majesty's Government392
AFFAIRS OF CHINA.
CONFIDENTIAL.
[38456]
(No. 357.) Sir,
No. 1.
IREC 19ca5 5 NOVO [October 18.]
SECTION 2.
15
0
Sir J. Jordan to Sir Edward Grey.-(Received October 18.)
Peking, September 29, 1909. THE question of the provision of funds for the conservancy of the Whangpoo, which formed the subject of my despatch No. 266 of the 22nd July last, was again brought up for discussion at a meeting of the diplomatic body held on the 15th instant. A report from the chief engineer to the Conservancy Board, detailing the exact financial position of that body and their requirements, had already been circulated among my colleagues by the dean, and also been communicated to me by Iis Majesty's consul-general at Shanghae* in a despatch, copy of which I have the honour to enclose. It remained, therefore, to decide whether the Chinese Government should be asked to provide the sums required, and, if so, in what manner the demand should be pressed upon the attention of the Wai-wu Pu. I am glad to be able to report that upon the first part of the question there was practically a unanimous decision in favour of approaching the Chinese Government, and that, although the German Minister at first expressed some doubt as to whether so large a sum was really required, he raised no active objections, although he is known to view M. de Rijke and his plans with disfavour. With regard to the manner in which the demand for funds should be presented, it was felt that the Chinese Government had morally incurred the obligation to defray the cost of all necessary improvements, and that consequently the demand should be couched in language implying that such an obligation existed. It will be remembered that a definite scheme for the creation of a Conservancy Board and the provision of funds for improvements was sanctioned in article 11B of the protocol of September 1901, and that the details of this arrange- mont, contained in annexe 17 to the protocol, provided that the foreign interests involved should be represented upon the board to be created, and should contribute one-half of the cost of the works. In spite of repeated representations, the Chinese Government could never be brought to carry out their share of the arrangement, which they considered derogatory to China's dignity and sovereign rights, and it was upon their own request to have sole control of the enterprise that the agreement of 1905 was concluded, which vested all authority in a board composed of the Taotai and commissioner of customs at Shanghae, and transferred to the Chinese authorities the duty of providing the whole of the yearly subsidy of 460,000 Haikwan taels.
A committee was appointed, consisting of the Austrian (deau of the diplomatic body), German, and Japanese Ministers, and myself, to draw up a memorandum for presentation to the Wai-wu Pu at a personal interview, when verbal representations would also be made. Accordingly on the 21st instant the dean, accompanied by Mr. Ijuin, Count Luxburg, and myself, proceeded to the Wai-wu Pu, and com- municated to the Ministers present (Na-t'ung, Liang Tun-yen, and Lien-fang) the memorandum, copy of which is enclosed herewith for your information. It is perhaps worthy of note that the German Minister did not attend, but sent the first secretary of the legation in his place. It may be that Count Rex was really indisposed on that day, but I am inclined to think that his absence was due to a desire not to identify himself too strongly with the prosecution of a scheme which has his assent, but not his whole-hearted approval.
His Excellency Liang showed considerable reluctance to adopt the views of He M. de Kuczynski, who urged upon him the necessity for immediate measures. admitted that the needs of the situation were pressing, but said that the sum required was very large, and that the Chinese Government would require time to consider so important a matter. He also expressed a want of confidence in the manner in which the work was being carried out, with special reference to the unfortunate case of malpractices in connection with the dredging operations (see my despatch No. 30 of the 18th January last),
* Not printed.
[2462 & -2]