[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
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34281
[July 25.]
SECTION 6.
NOV TO
No. 1.
Mr. Max Müller to Sir Edward Grey. ---(Received July 25.)
(No. 222.)
Peking, July 7, 1910. Sir,
IN my despatch No. 209 of the 23rd ultimo I reported upon the unsuccessful attempt made by Messrs. Samuel and McGregor in an interview with Yen Taotai at Changchun to come to an amicable settlement in the matter of their bean contracts.
From the enclosed copy of a letter which I have since received from Mr. McGregor it will be seen that the firm are instituting legal proceedings against Mr. Baldwin, with the object of ascertaining on what authority he acted as the representative of the Produce Mart. Pending the upshot of these proceedings Mr. McGregor deprecates At the any further action on the part of His Majesty's legation with the Wai-wu Pu. same time he informs me that he has made a verbal promise to Yen Taotai that if certain other business in Manchuria is secured by the firm, the latter will take no further action against Yen Taotai or anyone else for the recovery of the losses sustained over the bean contracts.
The business mentioned above, which Messrs. Samuel, McGregor and Co. desire to obtain consists in concessions to work, jointly with the Chinese, the coal mines at Mr. McGregor adds, Foong-mi-shan and Ho-shi-ling, both in the province of Kirin. for my information, that, if the Chinese Government grant these concessions and the engineer's report as to the potentialities of the mines is satisfactory, the claim against Yen in respect of the bean contracts will be at once withdrawn.
An important point to be ascertained in connection with the proposed mining concessions is whether the mines are located within an area in which the Russians or Japanese may claim to have mining rights in virtue of their railway agreements with the Chinese Government. So far as my information goes, the first mine, at Fu or Foong-mi-shan, lies to the north of the Hsing Kai Lake, near the Chinese Promorsk boundary, and about 100 versts from the Chinese Eastern Railway, that is, outside the area in which the railway claims special rights. The second mine, at Ho-shi-ling, would appear to be situated not far from Changchun, close to the line of the proposed Japanese Changchun-Kirin Railway. Mr. McGregor states that he understands from the Chinese that neither Russian nor Japanese rights would in any way be infringed by the granting of the proposed concessions, and he asks me my view on the subject. --as to which Apart from the fact that I am unable to locate the mines precisely--a Mr. McGregor himself appears to be somewhat in the dark-I should not feel confident of giving him reliable information without first enquiring of my Russian and Japanese colleagues. In present circumstances it is difficult to see how they would be in a position to give ine a definite answer, and the only effect might be that Messrs. Samuel As the and McGregor might find themselves forestalled in their enterprise. Chinese authorities may be presumed to know whether they are at liberty to grant the concessions, and appear to have decided the point in the affirmative, I have personally recommended Mr. McGregor to proceed with his negotiations; and in the event of his success, the responsibility for upholding the agreement will rest with the Chinese Government.
I have the honour to enclose the copy of my reply to Mr. McGregor.
I am, &c.
W, G. MAX MÜLLER.
Enclosure 1 in No. 1.
Mr. McGregor to Mr. Mux Müller.
Dear Mr. Max Müller,
Shanghai, July 2, 1910.
I MUST apologise for having disturbed you yesterday morning, and regret that I was unable to stop and see you in the afternoon as you kindly suggested.
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