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

AFFAIRS OF CHINA.

CONFIDENTIAL.

68

2765

RECR [December 16 28 JAN 10

SECTION 1.

[44964]

No. 1.

(No. 199.)

(Telegraphic.) P. MACAO.

Sir Edward Grey to Sir J. Jordan.

Foreign Office, December 16, 1909.

It is with great regret that His Majesty's Government have learnt the decision of the Chinese Government, as reported in your telegram No. 193 of the 12th December. They trust that the Wai-wu Pu may be induced to reconsider their refusal to submit the dispute with Portugal to arbitration. In view of the treaty between Great Britain and Portugal, by which we promise our protection of the Portuguese possessions from unprovoked attack, the action of the Chinese Government places this country in a position of considerable embarrassment.

Not only does the Wai-wu Pu's refusal to accept the arbitration proposal put the Chinese Government in the wrong, but it also places Great Britain in a very difficult position.

Anxious as we are that our treaty obligations should not bring us into conflict with China we must of necessity fulfil these obligations, and it was with a view to avoiding all such possible conflict that we gave the Portuguese proposals for arbitration our support. Any reasonable demands which China may put forward for the prevention of smuggling, or with a view to ensuring that Portuguese territory will not be used in a way prejudicial to Chinese interests, will always command our whole-hearted and effective support, but should the Chinese Government be ill-advised enough after refusing arbitration to resort to any form of aggressive action, His Majesty's Govern- ment will be compelled to lend forcible assistance to Portugal.

The Chinese Government might be given a copy of our original treaty with Portugal of the 23rd June, 1661 (see Blue Book, "Miscellaneous No. 2, 1898 "), so as to show them that our intervention is obligatory, and not due to any desire for inter- ference. The Chinese Government should at the same time have the true position of His Majesty's Government, as detailed above, put before them, and it is to be hoped that, with their well-known regard for all honourable engagements, they will uuder- stand the situation.

Please let me know if you can suggest any modification or change of procedure.

[2548 q-1]

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