[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
455
9850
[Marchi 7.)
In
SECTION 24 APR 10
(7910)
(No. 54.) Sir,
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received March 7.)
Peking, February 18, 1910. WITH reference to my despatch No. 389 of the 25th October last, I have the honour to forward herewith copy of a despatch which I have received from His Majesty's consul at Newchwang, with its enclosures, containing further repre- sentations on the subject of the discrimination in favour of Dairen and at the expense of Newchwang, effected by the new tariff of the South Manchurian Railway.
I have nothing to add to the arguments adduced by Mr. Wilkinson showing that the interests of Newchwang are seriously handicapped by the advantage in rates of freight per mile given to the port of Dairen by the specific rates to places in Manchuria. The object is unquestionably to divert trade to Dairen, with which port the interests of the railway administration are so closely identified.
I can only suggest for your consideration, in view of the intimate relations between the South Manchurian Railway and the Japanese Government, whether it it would not be possible for the latter to take steps to remedy the grievance complained of.
With regard to the discrepancies referred to in your despatch No. 13 of the 12th January, the correct figures for the new rates from Dairen to Mukden and from Newchwang to Changtu are undoubtedly 4 yen and 5-88 yen respectively. As for the old rate from Newchwang to Mukden, Mr. Wilkinson explains that the rate of 3.95 yen per ton, published in the tariff of the 1st July, 1908, was subsequently lowered, at any rate for all staple products, such as beans, to 3:36 yen a ton. The latter figure would therefore appear to be the correct one for comparison.
I have, &c. (For the Minister),
W. G. MAX MÜLLER.
Enclosure 1 in No. 1.
(No. 7.) Sir,
Consul Wilkinson to Sir J. Jordan.
Newchwang, February 8, 1910. IN my intelligence report for September quarter I commented at some length on the new tariff of the South Manchurian Railway Company, and showed how very unfairly it discriminated in favour of Dairen at the expense of Newchwang, the rates having in many cases been obviously fixed with the object of diverting trade from this port to Dairen.
I have now the honour to enclose a copy of a letter in the same connection which has been addressed to the Newchwang Chamber of Commerce by the agent at this port of the Asiatic Petroleum Company (Limited), who has made the matter the subject of an official complaint to the chamber. He draws the chamber's attention to the fact that under the new tariff the rates on kerosene oil have been made the same from Dairen as from Newchwang to Liaoyang and all stations north of that city, although the distance from Dairen is 137 miles greater than from Newchwang, so that to Mukden, for instance, the largest distributing centre in Manchuria, oil from Newchwang is made to pay more than twice the rate of freight per mile than is paid by oil from Dairen. Such discrimination, as the Asiatic Petroleum Company's agent points out, is a very serious thing for his company, for, relying on the principle of equal opportunity which Japan has so often expressed her intention to maintain in this country, they have made Newchwang, as the port in the closest proximity to the trade centres in the interior, their head-quarters for Manchuria, and have erected oil-tanks here, only to find that companies establishing themselves at Dairen are to be given an unfair advantage over companies established at Newchwang. From the railway company, whom they have approached on the subject, the only reply they can
[2675 g-2]