*
depressed, as he realises that his task is hopeless unless he wants to raise a rebellion in the Shan States.
The New Tengyneh Sub-Prefect ("Ting"), Wen Liang-yi, is an amiable man who speaks English, having been to America. He was a schoolmaster in Kueichow, but was sent here by the Viceroy on account of his foreign knowledge. He unfortunately has to relapse into Chinese when any matter of business crops up, as his vocabulary is strictly limited, but it is useful to have an English-speaking official on the frontier, and he may be able to use his gifts at the frontier meeting. He is not popular amongst the people, on account of the recent extortions, but he is so much overshadowed by the vigorous figure of the taotai that he is, I think, little to blame, being rather the victim of circumstances than in any way vicious.
The Frontier Deputy, Chao Kai-hsüan, is the best official in the district. He belongs to the old school, and has the most eccentric ideas on such subjects as geography and the European pharmacopoeia; but he is capable, businesslike, and courteous indeed, the best type of Chinese official. He sends in his resignation regularly at short intervals, owing to the taotai's treatment, which he is sufficiently courageous to openly resent; but the Viceroy is wise in advising him to hold out a little longer.
The Assistant Frontier Deputy, Wang Yu-liang, lies at the point of death, with virulent malaria. It is improbable that he will ever be well enough to resume his duties, and a new appointment to this post is expected daily. Mr. Wang has not been a satisfactory frontier officer.
The Lung-ling Ting, Hsu Chia-yu, has held his post for only five months. He has, however, been brave enough to report that if he attempted to stop the entry of foreign salt and the planting of the poppy this winter the people would certainly He is a rebel. I understand that he received his dismissal by return of post. capable, young, and energetic man, and was doing good work until the new taotai arrived in Tengyuch. I trust that he will not be lost to the frontier.
Since I have been in Tengyueh I have seen three taotais, three prefects of It is to be presumed. Yungchang, three Tengyueh tings, and three Lung-ling tings. that each change makes a slight difference to the good in the provincial exchequer; but whilst such a policy lasts there is little wonder that the confidence of the officials is sbaken, and that their only thought is to collect their dues at the highest rates and in the quickest manner possible, and to adopt an attitude towards frontier affairs which will avoid any rebuff from the capital, quite regardless of any effect it may have on the peace and prosperity of the frontier which is their passing charge. In view of recent events on the Szechuan frontier and in Thibet, it is interesting to notice that the services of the present Taotai of Tengyueh and of the officer on special duty at A-tun-tze have been placed at the disposal of the Yunnan Government by the two brothers Chao, of Szechuan and Thibet, and it would therefore appear probable that the present activity on the Burmah-China frontier is part of an organised and consecutive policy along the whole of the western frontier of China.
ARCHIBALD ROSE. Tengyueh, October 25, 1910.
[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[45233]
621
[December 14.]
SECTION 1.
7 JAN II
No. 1.
Memorandum communicated to Mr. Kato.
IN the memorandum communicated by the Japanese Ambassador on the 30th ultimo, summarising the agreement signed in London on the 10th ultimo by the representatives of the British, French, German, and American groups, it is stated that each of the four groups has agreed to bring into the common pool certain railway concessions appertaining to each of them in China.
This is not strictly the case, though it is true that the Hukuang Loan Agreement of 1909 between the British, French, and German groups, of which the present arrangement may be said to be a development, was the result of a compromise of the kind indicated in the Japanese memorandum, each of the three groups concerned surrendering its exclusive right to a specific railway concession in return for participa- tion in those concessions acquired by the remaining groups.
The statements with regard to the scope, conditions, and period of the agreement as given in the memorandum are substantially accurate.
In regard to the points raised in the last paragraph of the memorandum, there is perhaps a tendency to ignore the fact that the currency loan for 10,000,0001. was in course of negotiation between the American group and the Chinese Government before the signature of the November agreement, and the matter was and still is one which primarily concerns the United States Government and American group, though the former have undertaken to use their best endeavours to persuade the Chinese Government to permit joint signature of the loan by all four groups at Peking.
As regards the object of the loan, it is understood that 6,000,000l. are to be devoted to the reform of the Chinese currency, and the remaining 4,000,000l. are "for Manchuria," which presumably implies industrial and commercial undertakings as yet undefined.
His Majesty's Government are not fully acquainted with the views of the French Government, but Sir E. Grey understands that they will reserve to themselves the right to examine all business proposed to the groups from the point of view of national interests.
Foreign Office, December 14, 1910.
[1810 -]
-1]
134