[B]

[This Document is the Property of His Britannic Majesty's Governmen99

AFFAIRS OF CHINA.

CONFIDENTIAL.

со

10242 [March 24. SACTION 1 APR 10;

.:

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[10393]

No. 1.

Pro-memoria communicated to Chinese Minister, March 24, 1910.

IT had been hoped that the reception accorded by the King and His Majesty's Government to His Imperial Highness Prince Zai Süun and the Chinese Naval Commission last year would afford the Chinese Government an additional proof (if such were indeed necessary) of the friendly disposition entertained in this country towards China.

From official reports received within the last few days, the Secretary of State is reluctantly compelled to the conclusion that these hopes have not been realised, and that the friendly sentiments of His Majesty's Government are not reciprocated by the Government of the Emperor of China.

Three cases are now hefore Sir E. Grey, in which the attitude of the Chinese Government tends, unfortunately, to demonstrate an absence of goodwill towards His Majesty's Government which is not conducive to the continuance of the relations so happily existing between the two countries.

The cases in question arc

1. That of the Chinese Engineering and Mining Company, the negotiations in regard to which have been proceeding since 1903, and no solution has yet been arrived at.

In January last His Majesty's Government proposed arbitration, which the Chinese Government have now refused on the ground that the validity of the company's title must first be settled, but without putting forward any counter-proposal on their side or any suggestion for a settlement of this long-standing dispute.

2. The controversy with Portugal over Macao, iu regard to which, owing to our treaty relations with Portugal we have, with the consent of the Chinese Government, been vainly endeavouring to assist at reaching a settlement. The rejection by the latter of the proposal to submit the question to arbitration, their plea for awaiting the arrival in Peking of the Chinese Minister to France, who had been negotiating at Lisbon, and the encroachments which the Portuguese Government allege are being made into the territory under dispute, need not here be gone into. It is sufficient to observe that the Minister duly reached Peking in January last, and left again on four months' leave of absence without being consulted on the subject.

3. The Anhui Mining Concession Case. On the 5th January last Sir J. Lister Kaye, after protracted negotiations, finally agreed to accept a sum--which covered little more than the actual out-of-pocket expenses of his syndicate-on condition that the money was at once paid over. Although repeated official and private representations have been made by His Majesty's Legation, the only result after more than two months has been that an offer has been made by the Anhui Government to pay an instalment of less than half the amount agreed upon. There has from the first been no question of dealing with any authority but the Chinese Government, and the offer of the Anhui Government cannot therefore be entertained, and His Majesty's Government must insist on this payment being made without any further delay.

His Majesty's Government have already expressed their readiness to afford His Imperial Highness Prince Zai Tao and the Chinese Military Commission every facility in carrying out the object of their approaching mission to this country, but in view of these reports since received the Secretary of State considers that it will be better that His Imperial Highness's visit to this country should be postponed until he is able to look forward with some confidence to a more reasonable attitude on the part of the Chinese Government in their dealings with His Majesty's Government.

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