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This Document is the Property of His Britannic Majesty's Governque
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AFFAIRS OF CHINA.
CONFIDENTIAL.
[April 25,3 MAY
SECTION 1.
[14131]
(No. 97.) Sir,
No. 1.
Mr. Max Müller to Sir Edward Grey.-(Received April 25.)
Peking, April 7, 1910. IN his despatch No. 361 of the 6th October last, Sir John Jordan reported upon the forthcoming naval mission to Europe headed by Prince Tsai Hsün, and enclosed a memorandum recording an interview between Admiral Sa and Captain Dundas, naval attaché to this legation, on the subject of the reorganisation of China's navy.
The
The scheme of reform, as outlined by Admiral Sa, was not ambitious. Chinese Government apparently recognised that it was useless to build a fleet until a competent service had been organised to man it, and their plans were, therefore, more in the nature of a training than of a shipbuilding programme. The project did, however, include the construction of one large protected cruiser and of some small cruisers and torpedo craft, while it was intended to apply to His Majesty's Government for the services of one senior officer to act as naval adviser and two or three commissioned officers and six or eight warrant officers to assist in the work of roorganisation.
Since the return of the Prince and his mission, I gather from conversations which I have had with Admiral Sa, Sir Chen Tung Liang and others that even this modest programme has practically been dropped. The present financial resources of China are not sufficient for the purpose, and the Chinese Government are determined not to build ships with foreign money. It may also be that the Navy Board have come to the conclusion that the time is not yet ripe for sinking money in the construction of a small fleet, which must, for many years to come, prove an easy prey to any enemy. But, whatever the reasons for their decision may be, I learn that all plans for a reorganisation and strengthening of the Chinese navy have been abandoned for the present, and that, so far from embarking upon a scheme of extension of naval power, the Government have, on the advice of Prince Tsai Hsün, decided to curtail their efforts in that direction, and even to admit no more cadets for the present to the naval schools at Nanking and Chefoo. The Prince, however, advised the purchase of a small cruiser for training purposes, and also recommended that the order should be placed with Messrs. Vickers Maxim, as he was greatly impressed by what he saw when he visited that firm's ship- building yard at Barrow-in-Furness. A contract was, accordingly, signed on the 23rd ultimo between the representatives of the Chinese Naval Board and the agent of Messrs. Vickers Maxim, in the presence of the Chinese Secretary of this legation, for the construction and delivery of one steel protected cruiser training ship of 2,400 tons displacement and twenty knots speed, to be completed within eighteen months at a cost of 204,000%, payable in five instalments spread over the period of construction. The low price quoted for this vessel does not, I understand, allow of the usual profit to the contracting firm, and Messrs. Vickers Maxim are no doubt undertaking the work more with a view to future contracts than to any immediate advantage. The Chinese Government are credited with the intention of placing yet another order for a similar vessel, and it is to be hoped that if they do so, they will apply again to a British firm. In addition to Messrs. Vickers Maxim, other English shipbuilding firms, including Messrs. Armstrong and Company and Messrs. Beardmore and Company, have had representatives in Peking during the past few weeks, but I am afraid that their chances of gaining further orders may be seriously prejudiced if His Majesty's Government are compelled by the attitude of the Chinese Government to refuse to receive Prince Tsai Tao, Prince Tsai Hsün's brother.
It is hoped that the voluntary subscriptions which are being received from the Chinese residents abroad, chiefly Cantonese, may be sufficient to pay for two small cruisers, to be presented to the central Government, though their construction would, I am told, be in the hands of the Canton Viceroy, and not of the Naval Board.
I am, &c.
W. G. MAX MÜLLER.
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