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

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Great Britain, and if there is anything that China can do to settle any question that arises, she is always prepared to do her utmost to attain that end.

During his visit to England last year Prince Tsaihsun was accorded many favours and courtesies by His Majesty King Edward and His Britannic Majesty's Govern- ment, and in order to show their great appreciation of the courtesies shown, an Imperial letter of thanks was telegraphed by His Majesty the Emperor of China and His Imperial Highness the Prince Regent to His Majesty the King.

With regard to the approaching mission of Prince Tsai-tao to Europe it would be regrettable if on his way he should have to omit a visit to England. You will be so good as to discuss this question further with the Foreign Office, and ascertain their views in the matter. Please reply by telegraph.

[B]

AFFAIRS OF CHINA.

CONFIDENTIAL.

[12080]

(No. 114.) Sir.

No. 1.

Sir Edward Grey to Mr. Max Müller,

[April 7.]

SECTION 1.

I GAVE the Chinese Minister to-day the answer which I had promised.

Foreign Office, April 7, 1910. I dealt first with the appointment of Sir Robert Bredon--a matter to which, I told the Minister, I attached very great importance. I had heard some time ago that Sir Robert Bredon was endeavouring to get himself appointed to the Board of Revenue, obviously with the intention of defeating the condition that he was not to remain at the head of the Customs service. I must, therefore, continue to regard his present appointment as an evasion on the part of the Chinese Government of the undertaking they had given to us, and the Chinese Prince could not be received in the cordial spirit which we should like to extend to him so long as we had not received an assurance that the appointment would not be confirmed. We should also expect the observance of the assurance given by Liang-Tun-Yen to you that any post given to Sir Robert Bredon would be honorary, in the ordinary sense of this word.

The Chinese Minister expressed himself as most anxious to help to meet our views about Sir Robert Bredon, and to do everything he could with his Government to get the matter settled. He did not think his Government could wish to sacrifice friendly relations with us for such a point as this. He understood that Sir Robert Bredon's appointment to this Board was obnoxious to us. He assumed, however, that we should be satisfied if he were moved somewhere else, and the Minister added that he would be willing to consider any suggestions I could make.

I observed that it was rather for his Government to make suggestions. There were some posts of great importance, such as that of Sir Walter Hillier, to which we should not like to see Sir Robert Bredon appointed. But all I stipulated for was that he should not be appointed to the Board of Revenue, and that whatever post was given to him should be honorary, as promised by Liang-Tun-Yen.

With regard to the Chinese Mining and Engineering Company, the Minister me some documents which had been brought by the gentlemen sent to negotiate.

gave

I promised that the documents would be examined in the department, and that the matter would then be discussed with the gentlemen in question. Meanwhile, we should not press our demand for immediate arbitration. But, if the matter could not be settled by discussion with these gentlemen, then we should expect it to be settled by arbitration. I again said, with emphasis, that we should not ask for arbitration on selected points which would be specially favourable to the company and disadvantageous to the Chinese Government; the arbitration would be a fair one on the whole case.

With regard to Macao, I explained that we had no desire to interfere, but, if the Chinese were to resort to aggressive action, the Portuguese would then appeal to their treaty with us, This was the contingency which I wished to avoid. I had no wish to impede negotiations, and if the Chinese Minister to France was going to reopen negotiations at Lisbon with the object of obtaining a settlement, I could not object to such a course, provided the Chinese did not take aggressive action in the meantime. They must resort to arbitration before taking aggressive action, or else our treaty with Portugal would come into operation,

The Minister asked me what our decision was with regard to the Prince.

I requested him to call upon me again a week hence, by which time I hoped that the question as to Sir Robert Bredon might be settled.

Finally, I told the Minister that there were difficulties about the reception of a Chinese consul at Calcutta. It was a position which might be used for political purposes, and, before agreeing to receive a consul, we wished to be sure that our relations with China, and her intentions towards us, were such that no undesirable political consequences would result from the consul's appointment.

[2729 g--1]

I am, &c.

E. GREY.

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