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

[B]

AFFAIRS OF CHINA,

CONFIDENTIAL.

[5085]

No. 1.

381

C 6486

0

[February 11?

TREGY 4 MAR 10 SECTION 1.

(No. 77.) Sir,

Sir A. Nicolson to Sir Edward Grey.-(Received February 14.)

St. Petersburgh, February 8, 1910. I HAVE had the honour to receive your despatch No. 20 of the 25th ultimo on In a matter of this the subject of the Russian railway settlement in Manchuria, importance I should extremely regret if I in any sense misinterpreted your wishes, and I consider it therefore advisable before addressing the Russian Government to submit for your approval, and for any addenda or modification which you may desire to propose, the draft of a pro-memorid, which I suggest that I should leave with M. Isvolsky. I have some hesitation in entering in the pro-memoria into details concerning the circular note of the Chinese Government, and I have therefore in the last paragraph merely alluded to the subject, but I think in a manner which shows that His Majesty's Government attach importance to the contentions of the Wai-wu Pu.

I would be glad to receive by telegraph your views on the pro-memorid.

I have, &c.

A. NICOLSON.

Enclosure in No. 1.

Draft of Pro-memorid.

HIS Britannic Majesty's embassy had the honour to communicate to the Imperial Ministry for Foreign Affairs on the 17th (30th) October last, a memorandum regarding the situation at Harbin, and in accordance with instructions which it has received would beg leave to add some further observations to those submitted in the above communication.

2. His Majesty's embassy desires to assure the Imperial Ministry that His Majesty's Government are sincerely anxious to see the present question settled to the satisfaction of Russia and Great Britain alike; and it would point out that His Majesty's Government have never raised insuperable objections to the proposals made His Majesty's by Russia in regard to the question of railway settlements. Government have claimed nothing more than that the rules for the government of international municipalities in China must receive the approval of the Treaty Powers before they can be made applicable to foreign subjects. In this connection it is pointed out that the statement contained in the Russian aide-mémoire of the 23rd September (6th October), to the effect that foreigners are obliged to submit to "règlements ét taxes existants" in China, would appear to be founded on a misunderstanding, as China can impose no municipal taxation of any kind upon foreigners without the consent of their Governments.

3. With regard to the question of jurisdiction, His Majesty's embassy would wish to point out that in the case of a foreigner wishing to lease land at Harbin, or elsewhere, in the railway area, the railway administration require him to enter into an agreement which has to be approved by his consul, whereby he forfeits all right to appeal, in matters connected with his lease, to any tribunal, save the Russian frontier court. It would appear that in this respect the railway administration propose to challenge a right which foreigners of all nationalities have always jealously asserted in China-the right of being judged in their persons and property by courts of their own nationality. It will be recognised that in this matter the railway administration claim powers far in excess of those exercised by the British Govern- ment in the concessions held by them at the treaty ports, and granted under At Hankow, for instance, Russian perpetual lease by the Chinese Government. subjects holding laud in the British concession give an undertaking in writing, with

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