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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[44419]

No. 1.

363

[December 6.]

SECTION 2.

421

iReal 4 JAN 10

(No. 418.) Sir,

Sir J. Jordan to Sir Edward Grey.--(Received December 6.)

Peking, November 15, 1909. WITH reference to my despatch No. 304 of the 7th ultimo, I have the honour to transmit to you herewith copies of correspondence between the dean of the diplomatic body and the Wai-wu Pu, on the subject of the conservancy of the Whangpoo.

The reply of the Wai-wu Pu to the memorandum enclosed in my despatch No. 357 of the 29th September last, was in so far favourable that it contained a distinct statement that China would not allow the new channel to silt up, and that instructions had been telegraphed to Shanghae to carry out the dredging without any delay.

The subsequent notes, however, showed that the usual dilatory methods were being employed, while their tone indicated a disinclination on the part o fthe Chinese Government to admit that the foreign Powers had any concern in the matter, so long as the strict letter of the agreement of 1905 was carried out.

At a meeting of the diplomatic body held on the 1st instant, the whole question was again exhaustively discussed. The dean made a very long statement, the gist of which was that it would be difficult to bring the Chinese Government to a sense of its responsibilities by invoking the stipulations of the protocol of 1901, since the conten- tion that China had been released for all time from these stipulations by the agreement of 1905 was one which it was not easy to refute. I spoke strongly in favour of the view that China had agreed to bear the cost of keeping the Whangpoo in a properly navigable condition, and that, as soon as she neglected that duty, a return could, and should, be made to the protocol of 1901, if only for the purpose of compelling her to agree to some fresh working arrangement. pointed out again that the question was one of the highest importance to Shanghae, and stated that it was quite impossible for me, as representing a country which had very great interests at stake, to acquiesce in any delay which might imperil the navigability of the waterway upon which the foreign commerce of the port depended.

Following upon the decision taken at this meeting the dean went to the Wai-wu Pu on the 5th instant to insist upon the resumption of dredging. With regard to the dredging operations, his Excellency Liang Tun-yen promised M. de Kuczynski to telegraph to Shanghae in the sense desired; but he gave it clearly to be understood that the Chinese Government considered themselves absolved from the conditions laid down in the protocol of 1901 so long as they fulfilled the letter of the agreement of 1905, and held that the protocol of 1901 was no longer of any application. He recognised, however, the necessity of continuing the conservancy work, and said that the Chinese Government intended to do so, but in their own manner and at their own time.

I have, in my minute on the dean's circular recording this interview, copy of which is enclosed herewith for convenience of reference, again expressed my dissent from such a claim, and have maintained that China is bound either to provide the funds for the completion of the improvement of the course of the Whangpoo, as indicated in the protocol of 1901, or to revert to the principle laid down in that instrument, in accordance with which one half of the necessary funds is to be provided by her and the other half by the foreign interests concerned, whose share in the control of the expenditure of the money naturally revives.

I have, &c.

[2548 ƒ-2]

J. N. JORDAN.

B

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