2
Viceroy has got himself into their financial toils, however, it will be different, and we
look that door as shut.
upon
may
In the present instance we have done all that is possible, and can now simply But now that the Viceroy's pressing requirements allow things to take their course. are satisfied with Japanese money, it seems improbable that he will come to us for more at present.
[This Document
AFFAIRS OF CHINA.
CONFIDENTIAL.
[29459]
the Property of His Britannic Majesty's Government. O
No. 1.
63
20647
[August 15.REC
TREGS 16 SEP 10, SECTION 1.
(No. 244.) Sir,
Mr. Max Müller to Sir Edward Grey,-(Received August 15.}
Peking, July 27, 1910. IN my despatch No. 153 of the 16th May, I informed you of the representations which M. Korostovetz, the Russian Minister, had, by instruction of his Government, made to the Chinese Government in regard to their attitude in the matter of the Sungari River regulations, and stated that M. Korostovetz had told me that he bad found the Wai-wu Pu absolutely unyielding on this point.
A few days later His Majesty's consul at Harbin informed me that the negotiations there had practically come to an end without any satisfactory result being reached, and that the Russian consul-general had issued a notification giving Russian shipowners and the shippers of goods by Russian steamers the option of paying the maritime customs duties on deposit to the Russo-Chinese Bank.
M. Korostovetz went on leave early in June, and M. Stchékine, as chargé d'affaires, took up the thread of the negotiations, and after some time he informed me that he had induced the Wai-wu Pu to leave aside the larger questions of principle involved, and to admit the right of the Russian Government to be consulted in the elaboration of the regulations, and also to express their willingness to make concessions on certain of the points in dispute, such as tonnage dues, free frontier zone, and the two-third duty scale.
I think that my Russian colleague was at the time perhaps unduly optimistic, but there were already rumours afloat as to the coming Russo-Japanese agreement, and these were in themselves sufficient to account for a more yielding attitude on the part of the Chinese Government. Anyhow, M. Stehékine thought himself justified in recommending to his Government an extension of the period for the payment of the customs duties into the Russo-Chinese Bank for a further month, dating from the 1st instant, and the resumption of the discussion of the detailed regulations. He was, contrary to what Mr. Sly states in his accompanying despatch, in favour of transferring the discussion to St. Petersburgh, as he felt that he had neither the technical knowledge nor the time necessary for the work. However, he tells me that his Government have decided that the further negotiations are to take place here with the assistance of experts, who are, I understand, M. Latkin, chief of the Russian customs for the Priamur district, and M. Weber, chief of the shipping department of the Chinese Eastern Railway, while Taotai Sze, hitherto Customs Taotai at Harbin, and now commissioner for foreign affairs at Kirin, and M. Konovaloff, commissioner of customs at Harbin, are to take part in the discussion.
In view of the recent Russo-Japanese Agreement and of the instruction issued by the Prince Regent, to which I have referred in my despatch No. 246 of to-day's date, it is to be expected that the Chinese Government will show themselves far more accommodating in the framing of the Sungari River regulations than they did when M. Korostovetz complained of their attitude only two months ago.
I have the honour to enclose a copy of a despatch from His Majesty's consul at Harbin on this subject.
I have, &c.
W. G. MAX MÜLLER.
(No. 15.) Sir,
Enclosure in No. 1.
Acting Consul Sly to Mr. Max Müller.
Harbin, July 12, 1910. REFERRING to my despatch No. 12 of the 14th May last, I have the honour to report that M. Konovaloff, commissioner of customs, who, together with Taotai Sze, recently visited Peking in connection with the Sungari Navigation question, has now returned to Harbin,
[2862 p-1]