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[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL,
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8 NOV 10
[October 10.]
SECTION 1.
No. 1.
Foreign Office to Board of Trade.
Sir,
Foreign Office, October 10, 1910. AS the Board of Trade are no doubt aware, the question of the administration of the Russian railway settlements in Manchuria, and in particular at Harbin, has given rise to some difference of opinion between Russia on the one hand, and China and the Powers having treaty rights in China on the other. Under her agreement with China of the 5th September, 1896, Russia claimed the right of exclusive administration over the railway territory, and in practice she has exercised this right to such an extent that larbin has become to all intents and purposes a Russian town. When by the Sino Japanese treaty of the 22nd December, 1905, Harbin was opened to foreign trade the question of its administration became one of interest to all the treaty Powers whose nationals had acquired thereby the right to reside and trade in that town and to enjoy the extra-territorial privileges conferred upon them by treaty. Their position, if recognised by the Russian railway authorities, could not fail to impair the claim of the latter to govern the railway zone as they thought fit. It was some time, however, before the Russian Government realised that concessions would have to be made to the views of China and the treaty Powers, and in February 1905 regulations for the municipal government of Harbin were issued which ignored alike the sovereign rights of the former and the treaty rights of the latter. For a whole year these regulations remained a dead letter, but as soon as they began to be applied in the spring of last year difficulties and disputes arose which convinced the Russian Government that their position was untenable. An agreement was accordingly negotiated and signed on the 10th May, 1909, between Russia and China, which, while recognising the sovereign rights of China over the territories situated in the railway zone, provided for the establishment of municipal government in these territories. Article 17 of this agreement stipulated that within a month from its signature negotiations should begin for the elaboration of "detailed regulations" concerning the municipalities, police, and taxation, and His Majesty's Minister at Peking informed the Russian Minister at that time that, unless these detailed regulations were drawn up in consultation with the representatives of other Powers or were, at all events, made subject to the latter's approval, they could not be enforced, through the agency of the consular courts, upon the subjects of other
natious.
The enclosed despatch from His Majesty's chargé d'affaires at Peking* will show that no steps have ever been taken to frame the regulations above mentioned, and that the Russian Government appear to look upon the agreement of May 1909 as being unworkable and having lapsed, and to desire to come to some arrangement with the treaty Powers on the basis of mutual concession.
Sir E. Grey concurs in the opinion expressed by Mr. Max Müller, that the growing commercial interests of Great Britain at Harbin and elsewhere in the railway zone render a peaceful solution of this question desirable, and that the present appears to be a favourable moment to conclude an agreement with Russia on the subject. He proposes, therefore, if the Board of Trade concur, to inform Mr. Max Müller that His Majesty's Government favour the conclusion of a reasonable understanding with Russia, and authorise him to enter into negotiations to that end, provided that the payment of municipal taxes by British subjects is accompanied by guarantees as to expenditure and other points to be determined during the negotiations.
Sir John Jordan, His Majesty's Minister at Peking, who is at present in England, has expressed the opinion that the progress of the negotiations would be facilitated if the Russian Minister were alone charged with their conduct on the Russian side, and were freed from the obligation of consulting the authorities of the Chinese Eastern
* Mr. Max Muller, No. 234, July 11, 1910.
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