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36988

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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[39285]

No. 1.

REC? WEG // NOV 09

[October 25.]

SECTION 3.

56

Sir J. Jordan to Sir Edward Grey.-(Received October 25.)

(No. 364.) Sir,

Peking, October 7, 1909. WITH reference to my despatch No. 357 of the 29th ultimo, I have the honour to transmit to you herewith copy of a despatch from His Majesty's consul-general at Shanghae dealing with the present position of the Whangpoo Conservancy Scheme.

As you will already have gathered from my despatch above mentioned, the funds at the disposal of the Conservancy Board are exhausted, and it is absolutely necessary, if the work is not to be discontinued, that an immediate grant should be made to allow the dredging operations to be carried on. This necessity, as distinct from the wider question of the ways and means to provide for the whole scheme of works prepared by M. de Rijke, was duly emphasised by the dean in the memorandum enclosed in my previous despatch, and stress was also laid upon it during our interview at the Wai-wu Pu on the 21st ultimo.

The enclosed despatch fully explains the deadlock which has now arisen at Shanghae, and the situation therein described rendered it advisable, in my opinion, to urge the Chinese Government to hasten their decision. Accordingly on the 4th instant I spoke to Liang Tun-yen, and again impressed upon him the importance of taking immediate steps to provide funds for the continuance of the dredging, even if the wider question was not capable of a rapid solution.

Liang said that the Chinese Government quite realised the urgent nature of the situation with regard to the dredging operations, which they agreed could not be discontinued without endangering the maritime prospects of Shanghae, but he stated that the Taotai had reported that 300,000 taels would be enough to enable them to be resumed. His Excellency again spoke strongly in condemnation of the manner in which the work had been carried out, and alluded once more to the carelessness and dishonesty which had attended the operations of the Dredging Company. He finally assured me that the Government would take steps very soon to provide funds for immediate needs, and that the larger question of provision for the works contemplated within the next five years would subsequently be carefully considered.

The dean of the diplomatic body also went to the Wai-wu Pu on the 5th instant to speak on the same subject, but he only saw Lien-fang, who was unable to speak with any authority, and the interview was consequently of no real consequence. I have to-day suggested to M. de Kuczynski that we should demand an interview with the Wai-wu Pu and press the matter upon their attention. This suggestion is now being circulated amongst our colleagues.

I have just received a telegram from Sir Pelham Warren informing me that the Chamber of Commerce of Shanghae propose to call a public meeting unless arrange- ments are made for the resumption of dredging operations by the 11th instant.

I have, &c.

SC

Inclosure in No. 1.

J. N. JORDAN,

(No. 68.) Sir,

Acting Consul-Gene, al Barton to Sir J. Jordan.

Shanghae, September 23, 1909. WITH reference to my telegrams of the 11th and 16th instant on the subject of the Whangpoo Conservancy, I have the honour to transmit herewith copies of corre- spondence, as marked in the margin, between the Conservancy Board, the Chamber of Commerce, and the consular body, which explains the deadlock which has now arisen, and which has resulted in the cessation of all dredging operations.

* Chamber of Commerce, September 15; ditto, September ; Conservancy Board, September 13; East Asiatic Dredging Company, September 18; Conservancy Board, September 20; de Rijke, September 21, 1909,

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