[This Document is the Property of His Britannic Majesty's Government.]
[B]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[28786]
No. 1.
14
[August 8.]
CO 2.913
SEOTION 6. REC 8 SEP IC
REC
Sir,
China Association to Foreign Office.-(Received August 8.)
159, Cannon Street, London, August 5, 1910. I HAVE the honour to acknowledge receipt of your letter of the 16th ultimo, and to express to you the thanks of the Committee of the China Association for your courteous communication of the Secretary of State's views, in reply to my letter of the 5th idem, on the subject of railway extension in Manchuria.
In that letter I referred to the impression which appears to be gaining ground, that British interests in China are being sacrificed to the susceptibilities of Russia and Japan. You are evidently under the belief that this expression of opinion emanated from the "Times," whereas it is a reflex of the whole tenour of our correspondence from all parts of China and Japan, where British residents are becoming anxious and somewhat despondent at the outlook for our commercial interests throughout the Far East.
Our trade is directly threatened by the new Japanese tariff, the effect of which, if carried out, will be to destroy a large portion of our trade as completely as the Japanese tariff of 1896 put a stop to the large trade with India in Bombay yarns, which flourished up to that time. We are informed that the character and extent of the orders and enquiries for new machinery coming forward from Japan indicate that Japanese commercial circles have little doubt about the effect of the new tariff on the trade of Lancashire and Yorkshire.
In a separate letter I have drawn your attention to the danger which threatens valuable British trade with Corca.
My committee would also point out that China is one of the very few remaining free markets now left to British trade, and they view with apprehension the prospect of the important northern markets of that country coming under the influence of Powers whose commercial policy appears to be dictated by the development of their own industries, and to putting obstacles in the way of ours.
My committee look upon the reasonable extension of railways in Manchuria as of great importance to the future of our trade there. We maintain that the develop- ment of that country commercially is not incompatible with the reasonable claims of either Russia or Japan.
Making every allowance for their legitimate interests, if the practical result of their policy is to block railway development throughout Manchuria, we are of opinion that, in the interests of British trade, His Majesty's Government should not acquiesce in that policy, but should exercise their influence against it.
So far, the practical effect of the Russian and Japanese attitude has been effectually to block further railway development, and my committee would therefore again respectfully urge that His Majesty's Government should endeavour to get the Governments of Russia and Japan to state definitely the nature of their objections to the proposed construction of the Chinchow line, and to define the nature and extent of their claims to participation in that enterprise. My committee are hopeful that, if the original plans are held to militate against the legitimate interests of Russia, some modification may be arranged, and that the development of the country will not be wholly arrested.
Your letter under reply does not deal with this point, the importance of which seems to this committee to be enhanced by the understanding now come to between the Russian and Japanese Governments.
Furthermore, as a matter closely affecting British interests, and for the guidance of British subjects, we would respectfully suggest that His Majesty's Government should endeavour to obtain the consent of Russia and Japan to communicate the text of the several agreements made by them with China, to which the present Russo- Japanese Treaty refers. In view of the existing and potential interests of Great Britain in Manchuria, the request for full and frank communication on this subjcet would appear to be justified by the Anglo-Japanese Treaty of Alliance.
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