12
Enclosure 12 in No. 1.
Extract from "Shih Pao" of April 7, 1910.
Memorial by Chang Jên-Chün, Viceroy of Liang Kiang.
OWING to the increasing density of the population of the northern quarter of Shanghae and the undesirability of making an agreement with the British company for the supply of drinking water, application was made in an earlier memorial for the provision of 50,000 taels by the Shang Pu and for authority for the taotai and gentry to raise a loan of an equal amount.
The taotai and gentry now write as follows:---
"After repeated consultations, we were unanimously of opinion that to connect with the water-mains would only be a makeshift and the best course would be to undertake the business ourselves. We engaged Mr. Engel, engineer of the inland waterworks, to make a survey along the side of the Woosung River, and he found that at the north end of the Kuangtung Mortuary the water was deep and clear. There is in that place an area of over 20 mou, where the works can be placed. It is proposed to make a modest beginning with one water tank, two filtering tanks, and one pure water tank; to buy from abroad two sets of pumping machinery with a capacity of 600,000 gallons per twenty-four hours; and also an electric lighting plant for 2,000 lamps for lighting roads and shops in Chapei. It is estimated that the cost of land and buildings will be 100,000 taels, and this, together with the 100,000 taels for laying pipes, makes a total of 200,000 taels. By unceasing work the water could be ready to be supplied after eight months. This scheme is in all respects preferable to making connection with the (Shanghae Waterworks Company's) pipes, and will bestow lasting benefit at the expense of a single exertion.
As regards the additional 100,000 taels required, we would ask the Shang Pu again to provide 50,000 taels from the sums at its disposal, while the taotai will again raise a loan of 50,000 taels, thus making 200,000 taels in all, at 7 per cent. per month interest. Within one year after the opening of the works shares may be issued for the purpose of repaying both the board's advance and the loan.
If the subscriptions for shares do not amount within the year to enough to repay both, the board's advance, together with the interest on it, must be first repaid in full. If there is still not enough, repayment must be made from the annual profits."
As an impure water supply is injurious to public health, and it is better that we should have our own waterworks than join on to the British company's system, I feel it my duty to memorialise the Throne, praying that the board may be commanded to make arrangements to allow the proposed loan at 7 per cent. per month interest, in order that it may be possible to begin work at once.
I have communicated with the Wai-wu Pu, the Board of Commerce, and the Board of Finance.
Imperial Rescript.-Boards to be informed.
13
county ("hsien") of Paoshan, which has never been opened to international residence and trade.
These objections do not appear to the department to be well taken. As to the first, no boundaries agreed to for such a settlement can be regarded as fixed for all time. The chief commercial metropolis is probably destined to continue for many years to come the wonderful growth which has characterised it in the past, and due provision must be made for such growth. The treaties expressly provide that the extent of such ground to be assigned to foreign residents at the open ports shall not be limited, but shall be determined according to the need and convenience of the parties (British supplementary treaty of 1843, article 7; French treaty of 1858, article 10).
The second objection is equally inadmissible. Although Shanghae was one of the five ports opened by the American treaty of 1844, it was not the county ("hsien ") of Shanghae that was opened, but the port, and the fact that the port is situated near the boundary of another county cannot prevent its growth in a natural way over such an artificial boundary. Neither does the extension of the settlement into an adjoining county make necessary the opening of the city of Paoshan to foreign residence, much less the opening of that whole county, neither is there any insuperable obstacle to the opening to such trade and residence of any unopened territory which may be needed for such purpose.
It is impossible for the department to assent to the position taken by one or two Americans that an extension of the settlement would violate the consistent policy of this Government in the maintenance of the territorial integrity of China. This Government was already committed to that policy in 1899, when the last extension was agreed to and failed to see them, as it does still, that such extension affected the territorial integrity of the Chinese Empire, since Chinese sovereignty over such territory was recognised.
This department is unable from the data at hand to determine how much territory should be included in the extension in order to conserve American interests, or the exact location thereof. You are instructed to make careful investigation on this point, and unless serious reasons present themselves to your mind for acting otherwise, you will support the request of the Shanghae municipal council for such extension as will seem to meet the requirements of the present situation.
The legation will be instructed to give the project similar support at Peking. The department relies on your discretion to avoid in your presentation of the case any unnecessary friction with the Chinese authorities.
I am, &c. (For Mr. Knox),
IT. WILSON.
Sir,
Enclosure 13 in No. 1.
Mr. Knox to Mr. Wilder.
March 1, 1910.
I HAVE to acknowledge receipt of your despatch of the 24th December, 1909, enclosing copy of the report of the annual meeting of the American Association of China held at Shanghae on the 16th December, 1909, when resolutions were adopted favouring the extension of the international settlement at that port.
It appears from this report that the American community of Shanghae is all but unanimous in support of the proposed extension, and that the principal objections of the Chinese Government are two :-
1. That the boundary of the settlement as determined in 1899 was fixed for all time; and
2. That the proposed extension will carry the settlement into the neighbouring
227