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supply various buildings then being erected, application for such extension was made to the Trotai, and at that time there was no objection on the part of the Chinese authorities, who granted the necessary permit through the consulate; within the last twelve monthis, however, the company has met with considerable opposition, which now seems to be taking a more acute form. A notable case is one which occurred a little time back, when the company was prevented from carrying a supply of gas into a private shop abutting on the North Szechuan road extension, a municipal road. In February last year a native fitter was sent to North Honan road extension to lay a branch main to supply a new terrace of foreign houses slightly to the north of the Commercial Press building. A Paoshan constable stood by and watched the fitter until he had cut the main so as to insert the branch pipe. As soon as this was done, and without allowing the fitter to reconnect the cut pipe, he arrested him on the double charge of opening the ground without a permit and damaging a pipe belonging to the Chinese authorities. The man remained in custody for about twenty-four hours, and was then released on an application by the gas company, the consumers further along the main were, however, without gas during the night. Pipes were fixed in a house, No. 617a, Kaifeng Road, and a permit obtained from the council to lay a service, as the position selected was within the municipal boundary. No complaint was made by the native police at the time, but soon afterwards they began to threaten the consumer that unless he discontinued to use the gas he would be arrested, and, finally, to avoid this constant persecution, he had the gas cut off.
"Another case, occurring on the North Szechuan road extension, was that at a shop where a gas company's fitter deposited a meter, and a Paoshan constable, who was standing by, took it out and placed it on the North Szechuan road and told the fitter that it was not allowed to fit gas-pipes there.
"These are only a few cases of obstruction to these two companies. Whilst opposition to the two companies above mentioned has been going on locally, the Chinese authorities in Peking have approached the British Minister to curtail the operations of the telephone company.
There can be no doubt that the opposition to the water, gas, and telephone companies is with a view to disposing of the question of settlement extension, but my committee are unanimously of the opinion that, from the foreigners' point of view, no satisfactory solution will ever be arrived at which does not include the extension of the settlement as is desired by the municipal council."
I beg to enclose, for the information of His Majesty's Government, an extract from the Shanghae municipal council's report for last year, relating to the extension of the settlement. The association's Shanghae branch writes :-
"With reference to the Dixwell road extension, I would point out that the road is now cut through; the road the native authorities were supposed to be making, running at right angles to the council's, is left as it was for about 30 yards on either side leading from and running to nowhere, clearly indicating that it was a case of obstruction only.
"The police confusion on the border is as great as ever, and, as pointed out in my telegram, friction is only avoided by allowing cases of obstruction to pass unnoticed. I enclose some extracts from the police daily reports. (See Annexe A.*)"
If further evidence be required for the urgent necessity of including Chape within Shanghae settlement limits, it may be found in the disturbing fact that the Chapel local authorities have shown no disposition to co-operate with the municipal council in taking preventive measures against the introduction of plague, although they have been urgently requested to co-operate with the health officer.
Shanghae has hitherto been immune from bubonic plague, although seriously threatened by large numbers of plague-infected rats found within its borders; it is of vital importance, both to foreigners and Chinese, that no effort should be spared to guard against an outbreak, which would be a disastrous calamity to the whole community.
The following is an extract from the health officer's report of last year :--
The most dangerous places as regards plague-preventive measures
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were
Li Hongkew and Chapei, on the borders of the settlement, where plague-infected rats had been found. After considerable trouble the sanitary staff was permitted to extend
• Not printed.
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rat-destruction operations outside the settlement into these insanitary neighbourhoods. No preventive measures whatever were undertaken by the Chinese municipal authorities, although the methods used within the settlement boundary were fully explained and co-operation urgently requested. This circumstance clearly demonstrates the need of an extension of the settlement for purposes of sanitary safety, for, were it possible to keep plague out of the settlement by energetic sanitary measures, there would, under present conditions, be constant danger of reinfection from the insanitary and populous places immediately outside the boundary, which are now, unfortunately, beyond sanitary control."
The recent riots at Changsha are evidence of unrest in Central China, and my committee would respectfully subunit that representations be made to the Chinese Government, pointing out the very serious responsibility incurred by local officials in perpetuating a state of friction which cannot fail to stir up ill-feeling between foreigners and Chinese at this time, and at a place like Shanghac, where interests of the greatest magnitude are involved.
I have the honour to enclose copy of the "Shanghae Municipal Gazette" of the 7th April, from which it will be seen that Mr. P. C. Kuox, Secretary of State, writing from Washington to the secretary of the American Association of China, states that the legation at Peking and the consulate-general at Shanghae have received instructions to support the request of the Shanghae Municipal Council for such extension as will seem to meet the requirements of the present situation.
Taking this in conjunction with the fact that in Chinese official correspondence the settlements are invariably referred to as Anglo-American, my committee are of opinion that the present affords an opportunity for joint action on the part of His Majesty's Government and that of the United States with a view to the termination of a state of friction which is becoming chronic, and may lead to serious trouble.
I have, &c.
F. ANDERSON,
Chairman.
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