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CO 304

[This Document is the Property of His Britannic Majesty's Government5654

[B]

AFFAIRS OF CHINA.

CONFIDENTIAL.

[3514]

No. 1.

Rece

Rro 24 FEB 10

[January 31.]

SECTION 3.

Sir J. Jordan to Sir Edward Grey.-(Received January 31.)

(No. 20.) Sir,

Peking, January 12, 1910. IN continuation of my despatch No. 472 of the 18th December last, I have the honour to transmit to you herewith copies of a further correspondence which has passed between the Russian Minister and myself respecting the conditions attaching to the leasing of land by British subjects in the Russian railway territories in Manchuria.

You will see that as the result of my previous representation General Horvat has considerably modified the terms of the note of promise, and has agreed that any disputes which may arise with regard to them should be referred to the decision of the nearest British consul. This appears to me to remove the most objectionable feature of the undertaking, and at the request of Mr. MacGregor, who came here specially to see me on the subject, I have informed my Russian colleague that I am now prepared to authorise His Majesty's consular representatives to attest the signature of any British subject who may subscribe to the note of promise. I have at the same time verbally explained to M. Korostovetz that this formality does not in any way commit us to an approval of the terms of the note of promise.

The question has now become a practical one for us, and as it may be a long time before the detailed municipal regulations contemplated by the agreement of May last are drawn up, I have been obliged to do what was possible to meet the immediate requirements of British firms.

I have, &c.

Enclosure 1 in No. 1.

J. N. JORDAN,

M. Korostovetz to Sir J. Jordan.

My dear Colleague,

December 24, 1909 (January 6, 1910). IN answer to your communication of the 13th December, I beg to state that I received from General Horvat information concerning the case of Messrs. MacGregor.

It appears that there was some misunderstanding about the text of the note of promise requested from the foreign subjects wishing to lease land belonging to the railway administration, as the form which you kindly forwarded to me with your letter represents an old copy whose text does not correspond to the document requested from foreigners at present.

It is clear from the explanation of General Horvat, as well as from the text of the original note of promise herein enclosed with an English translation, that the under- taking which the foreigners wishing to lease land have to sign does not put them under the authority of the Russian court, and does not deny their right of being judged in their persons and property by courts of their nationality, as in article 11 of the note of promise it it is clearly stated that all disputes resulting from the agreement are subject to the consideration of their nearest consular representatives.

General Horvat adds that in the case of Messrs. S. MacGregor the railway administration acted with special attention, which is proved by the fact that though the above mentioned firm had not yet signed the note of promise, still the railway authorities, acting on trust, allowed them to build and start their business.

I hope that under these considerations the British consul will not find any

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