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

36392

17

AFFAIRS OF CHINA.

CONFIDENTIAL.

RECO Bro 5 NOVOY

[October 18.]

SECTION 3.

0

[38450]

No. 1.

Sir J. Jordan to Sir Edward Grey.—(Received October 18.)

(No. 351. Confidential.) Sir,

Peking, September 27, 1909.

I HAVE the honour to enclose herewith copy of a despatch which I have received from the acting consul-general at Mukden, forwarding copy of an agreement concluded between a British firm and the local authorities at Changchun for the delivery by the latter of 40,000 tons of beans during the coming season.

The export of beans from Manchuria to Europe on a large scale is a new and striking development of China trade. I am informed that the export last season (November to June) was about 400,000 tons, of which 210,000 tons went through Vladivostock and 190,000 through Dalny, and that next season's crop is estimated at 1,000,000 tons.

Although three or four British firms took part in this business, it has been chiefly in the hands of the Japanese, who have naturally greater facilities for purchasing in the interior. The assistance now given to Messrs. Samuel McGregor and Co. would seem to indicate an effort on the part of the Chinese authorities to limit any exclu- sively Japanese economic expansion in Manchuria. The active participation of British firms in developing the enormous resources of Manchuria points to the possi- bility that the status of the trade marts there may in the near future become a matter of more practical importance to British interests than has hitherto been the case.

I have, &c.

J. N. JORDAN.

Inclosure 1 in No. 1.

Acting Consul-General Willis to Sir J. Jordan.

(No. 46. Confidential.) Sir,

Mukden, September 20, 1909. I HAVE the honour to enclose copy of an agreement recently signed at Changchun, under which the newly constituted board for the opening of the mart to international trade has contracted with the British firm of Messrs. Samuel McGregor and Co. for the delivery of 40,000 tons of beans during the coming season.

The agreement was signed by Mr. Yen, the territorial taotai resident at Changchun, as representative of the board.

Mr. Yen recently informed me that his agents were purchasing in considerable quantities from the farmers throughout the district, and that he already had control of more than 200,000 tons of produce.

It appears that this action on the part of the Chinese authorities, which, I understand, is approved by his Excellency the Viceroy and the Governor of Kirin Province, is dictated by a desire to break the practical monopoly in the purchase of beans hitherto held by the Mitsui Bussan Kaisha; in fact, their purpose would seem to be gradually to convert the market for the purchase of produce in the Kirin Province into a Chinese Government monopoly.

There is an undoubtedly strong feeling of antagonism against Japan amongst the Kirin official class, which has been strengthened by the concession for the construction of the Kirin-Chientao Railway granted under the recent Manchurian agreement.

[2462 s--3]

I have, &c.

ROBERT WILLIS.

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