[This Document is the Property of His Britannic Majesty's Governme
AFFAIRS OF CHINA.
CONFIDENTIAL.
[1972]
No. 1.
162
REC [January B.FEB 10)
SECTION 2.
Sir J. Jordan to Sir Edward Grey.-(Received January 18, 1910.)
(No. 491.) Sir,
Peking, December 29, 1900. I HAVE the honour to transmit to you herewith copy of a despatch which I have received from the acting consul at Chinanfu, reporting the conclusion of an arrange- ment whereby the German company working the Maoshan gold mine in Ning-bai-chou, to the south-west of Chefoo, have agreed to surrender their rights in return for a payment of 950,000 marks. This arrangement involves further the surrender of all the mining rights acquired by the Germans in the province of Shantung under the agreement of 1907, of which I forwarded the text, as given by the press, in my despatch No. 3 of the 4th January last.
The text in question, I should point out, was acknowledged to be substantially correct by a member of the Chinan Foreign Bureau, who, however, explained that the seven areas in the five zones had been reduced to a single area, and were all included in the mines at Maoshan, which covered over 200
square li.
It was known early this year that the German company were contemplating the cession of their rights, the mines having proved a failure owing to bad management. Though the Germans at first demanded compensation to the amount of 2,500,000 marks (say 125,000), the fact that they have eventually succeeded in obtaining a sum of nearly 50,000l. in return for mining rights of doubtful value can only be attributed to the effect of the present craze on the part of the Chinese to buy out all foreign enter- prises of this nature. While the more reasonable section of Chinese public opinion rightly pointed out that the only items for which a price could legitimately be demanded were the land and the buildings, valued at some 4001, the so-called Society for the Protection of Mines clamoured loudly for the repurchase of the concession at any price in order to oust the foreign company. The readiness of an English syndicate to negotiate for the purchase of the mines was a further factor in the case, and has greatly contributed towards the granting of so liberal a compensation to the German concessionnaires.
I have, &c.
Enclosure in No. 1.
J. N. JORDAN,
(No. 27.) Sir,
Acting Consul Giles to Sir J. Jordan.
Chinan, December 21, 1909. IN continuation of my despatch No. 21 of the 16th October, I have the honour to report that the negotiations for the retrocession of the Maoshan gold mine have now been concluded, the German company having agreed to accept the sum of 930,000 marks in full settlement of all claims. This arrangement includes the definite surrender of all rights claimed in connection with the five zones mining concession, which has thus been finally cancelled.
It is very unlikely that the Chinese will be able to work the mine on a paying basis, and thus in some measure recoup themselves for the heavy expenditure incurred in its repurchase. It may be noted that had it not been for the eagerness of the authorities to prevent the concession from passing into the hands of a British syndicate, there was no actual necessity for the outlay, which this province can ill afford at the present moment.
I am sending a copy of this despatch to His Majesty's consul at Chefoo.
I have, &c.
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BERTRAM GILES.