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opposition to the Rijke scheme. Seeing that it was no use pursuing the subject further, I contented myself with pointing out that such an international commission would only involve further expense and delay.

The upshot of the whole discussion was that the Dean was authorised to address the note, copy of which I have the honour to enclose, to the Wai-wu Pu,* requesting as a first step to be furnished with a copy of the report of the Chinese commissioner in order to ascertain what were the intentions of the Chinese Government in regard to continuing the work on the Whangpoo.

On the 15th June I received from Sir Pelham Warren a copy of a report on the Whangpoo Conservancy by Mr. Merrill, Commissioner of Customs at Shanghai, and translations of the memorial to the Throne of the two Viceroys, Jui Cheng, ex- Viceroy of Nanking and Special Commissioner, and the present Viceroy Chang, and of a set of twelve regulations drawn up by them.†

In transmitting these documents, copies of which I have the honour to enclose, Sir Pelham Warren expressed the opinion that the memorial was too vague in ips references to the works planned" and "completed" to be taken as a definite state- ment of Chinese policy, and he drew my attention to the fact that only the first seven of the regulations are to be strictly carried out," as if the memorialists were aware that the remaining five must be subject to the views of the foreign representatives. Mr. Merrill's memorandum he qualified as being about as good a presentation as can be made of the case against the provision of further funds by the Chinese Government.

The documents were considered by the consular body, who decided to take no action with regard to the Viceroy's memorial, while as to Mr. Merrill's report, they determined, before expressing any opinion on his proposals, to ask Mr. Merrill to allow it to be submitted to M. de Rijke for his official opinion.

Mr. Merrill in his memorandum lays stress on the success that has attended the execution of the two principal features in M. de Rijke's scheme, viz., the closing of the old ship channel and the deepening of the Junk or Astraca Channel, and the building of the jetty where the Whangpoo flows into the Yang-tsze, and he holds that the great results achieved fully vindicate the wisdom and soundness of M. de Rijke's main plans. He then proceeds to deal with the necessity of providing for the preser- vation of the work done, and the best and most economical means of securing that end, pointing out that the fate of Shanghai as a commercial metropolis is bound up with the maintenance of the navigability of the river. He enumerates what he considers the most necessary additional works mentioned in M. de Rijke's report of the 15th April, 1909, which should be carried out as the funds available may permit, viz., the training work on the right side of the river below Pheasant Point, to be followed by the cutting away of Pheasant Point; the construction of protective cribwork above the Kajow Creek to check erosion of the banks; and dredging in the entrance of the Soochow Creek. The execution of any or all of these works depending on the provision of the necessary finances, Mr. Merrill goes into a detailed examination of the estimated expenditure and receipts of the board up to the 30th September, when both the dredging and the jetty contracts are expected to be completed, and he finally comes to the conclusion that the total maximum funds at the disposal of the board for future work after the 30th September, 1910, will be roughly 650,000 taels, out of which he recommends the purchase of a dredger and dredging outfit for 500,000 taels, the remainder to be used so long as it lasts for the maintenance of a greatly reduced staff and for carrying out the most important parts of the works of maintenance and improvement as set forth above while waiting for the arrival of the dredger.

Mr. Merrill then turns to the question of the provision of further funds, and he estimates that with an additional sum of 300,000 taels a-year an adequate staff could be maintained, a dredger kept at work, and further works of maintenance and improve- ment carried on. He holds, however, that the Chinese Government, having fulfilled the condition of the 1905 agreement as to supplying funds, cannot be expected to contribute further, and that therefore resort must be had to special taxation of the trade and shipping of Shanghai. He suggests that the necessary sum might be raised by a levy of 2 per cent, on customs duties, which would bring in 180,000 taels and a levy of tonnage dues of 13 candareens per ton on shipping entering the port, which would produce 135,000 taels; but be clearly foresees that the consent of the foreign representatives to such taxation could only be obtained by conceding some measure of

Joint note to the Wai-wu Pu (not printed).

Mr. Merrill's Memorandum, April 15, 1910 (in print); Viceroy's Memorial, twelve Regulations (not printed).

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foreign control of the proceeds of the taxes; he suggests foreign representation on the conservancy board, which has proved so successful in the case of the Haiho Conservancy Board.

The memorial of the Viceroys is not half so satisfactory or reasonable. The whole tenour of this document is that, whether the work is finished or not, the Chinese Government cannot, under any circumstances, be called upon to incur any more expenditure when once the whole amount stipulated in the agreement of 1905 has been exhausted. The Chinese duties and obligations are then at an end, and the conservancy board should then be abolished, the engineers and employés discharged, and the Shanghai taotai entrusted with the maintenance of the works.

The twelve regulations appear to call for no special comment, as they are clearly inacceptable if the work at present completed is to be preserved, let alone the execu- tion of the unfinished portions of the de Rijke scheme.

I have, &c.

W. G. MAX MÜLLER.

477

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