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maintenance of the now completed works for the conservancy of the Whangpoo River, from which we learn that the foreign representatives would he prepared to agree to the proposed engagement of M. Heidenstam for the post of engineer, provided that satis- factory testimonials in the form of diplomas and certificates of previous experience are produced, and that the term of his engagement does not exceed one year.

This board is of opinion that the limitation of M. Heidenstam's appointment, in the first instance, to a term of one year can be agreed to.

your

Excel- As regards his diploma, the original of this has already been submitted to lency by the hand of a deputy, and a copy thereof is now enclosed herewith for record. As regards certificates of his previous experience, M. Heidenstam early in December handed to the Shanghai taotai a memorandum, from which it

that appears during the years 1905, 1906, and 1907 he was employed on conservancy work in Sweden in connection with rivers, lakes and bays, and canals as engineer, and also as assistant superintendent; in 1908 he studied the principal European rivers in Germany, Austria, Sweden, and other countries, such as the Danube, Tsai (P), and Lung (?) rivers; in 1908 and 1909 he was engaged in work on river embankments and canals in America; he has already telegraphed to Sweden for all his certificates. From the above it is evident that M. Heidenstam has had ample experience in river works.

M. de Rijke having already returned to his home, and it being essential that the Whangpoo works should not be left any longer without an engineer-in-chief, we have the honour to ask that the foreign representatives will at an early date give their consent to M. Heidenstam succeeding to M. de Rijke's post.

With regard to the statement contained in your Excellency's note under reply, that the dissolution of the Whangpoo Conservancy Board, &c., having been notified by despatch the cancellation of such should also be notified in the same manner, the board hereby expressly declares that although the name of the Whangpoo Conservancy Board has been altered to the Whangpoo Maintenance Board the treaty stipulations will still be adhered to, that the convention of 1905 will not be abandoned, and that the control of the said board will continue to rest with the Shanghai taotai and commissioner of customs.

Requesting the honour of an early reply, we have, &c.

Enclosure 3 in No. 1.

Dean of Diplomatic Body to Prince Ch'ing.

Pékin, le 6 janvier, 1911.

J'AI l'honneur d'accuser réception à votre Altesso de la note qu'elle a bien voulu m'adresser le 3 janvier dernier et de lui faire connaître, au nom des représentants des Puissances, que le Gouvernement chinois pourra considérer la nomination de M. de Heidenstamm en qualité d'ingénieur-en-chef du

"Whangpoo Conservancy" pour un an comme acceptée par eux à partir du moment où les assurances données par le Gouvernement Impérial dans sa note précitée, en ce qui concerne le maintien du "Conservancy Board" (" Whangpoo Maintenance Office ") dans les conditions prévues par l'arrangement de 1905, auront reçu leur exécution à Shanghaï.

Enclosure 4 in No. 1.

Programme of Whangpoo Conservancy Board.

THE Whangpoo Conservancy Board of Administration, to be known shortly as the "Conservancy Board," shall consist of the Shanghai taotai, the Shanghai customs commissioner, and the coast inspector.

2. The authority with which the Conservancy Board is invested is delegated to it by the Imperial Chinese Government, and, cousequently, the board is in no way subordinate to the provincial authorities. The several members of the board have, as such, equal authority, and the opinion of the majority is to be determinative.

3. The board shall have entire charge of the finances connected with conservancy matters. In this connection :-

(a.) The original annual Government grant of 460,000 taels shall periodically, on fixed dates, be paid to the board's accounts, in whatever bank or banks such accounts

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may be kept, and the board will take charge of the existing conservancy loan account, and will provide for the payment of the principal and interest as they fall due.

(b.) All conservancy funds, in whosoever's hands, shall, within thirty days of the promulgation of this agreement, be paid to the Conservancy Board's account.

(c.) Any new annual Government grant that may be made shall periodically, on fixed dates, be paid in full to the Conservancy Board's account.

(d) The conservancy tax on imports and exports, referred to in article 4, shall be collected by the commissioner of customs, and shall periodically, on fixed dates, be paid to the Conservancy Board's account,

(e.) The Conservancy Board will disburse conservancy funds for the execution of the necessary works, and for the maintenance of staff and office at his discretion. Cheques will be cashed on the signatures of any two members.

4. The several chambers of commerce and associations representing the commercial interests of Shanghai having agreed to the raising of a tax for conservancy purposes, consisting of 3 per cent. of the customs duties, and, in the case of duty-free goods, of 1- per mille of value, the tax shall be dealt with, as provided for in article 3 (d), as soon as such formalities as are necessary to regularise it have been completed and notified to the Conservancy Board by the Ministers.

Note. This tax is based generally on the figures given in Mr. Commissioner Merrill's memorandom of the 15th April, 1910, in order to provide the 300,000 Haikwan taels, which is Mr. Merrill's estimate of the sum necessary for the modest programme set forth therein,

5. For all contracts in connection with the works and for the purchase of material or machinery, &c., public tenders will be invited, and the tender offering the most advantageous conditions accepted.

6. The Conservancy Board shall appoint at its discretion and shall control the staff necessary for the work to be effected, including the secretary and engineer in charge.

7. The general jurisdiction of the Conservancy Board extends over the Whangpoo from the Yang-tsze to its tidal limit, that is to say, within those limits, between the high-water lines, no operation which may possibly affect the regimen of the river shall be undertaken without the Board's consent, nor without such consent shall pontoons or hulks connected to the shore be established.

All applications for the Bourd's consent for such works, &c., on the Whangpoo below the upper harbour limit shall be made to the harbour-master, and be replied to by him as heretofore.

The control of the river police, of sanitary arrangements, of aids to navigation and of pilotage, remain as heretofore in the hands of the Imperial Maritime Customs.

8. Under the conservancy agreement of 1905 provision that the conservancy funds benefit by the sales of Crown lands, in so far as such sales were rendered justifiable by the conservancy scheme, was left undefined. During the operation of that agreement large quantities of Crown lands, with the conservancy normal line as a boundary, have been sold by the Shenko Office, by which the conservancy funds should have, but have not, benefited.

It is

This matter needs settlement, but is too involved to be dealt with herein. therefore decided that, subsequent to the promulgation of this agreement, this matter be jointly investigated by the taotai and the consular body, as the preliminary to the addition of a supplementary article to this agreement.

9. The duties of the Conservancy Board are----

(1.) At an early date to come to a conclusion in consultation with the engineer in charge concerning--

(a.) What should be the ultimate aim of conservancy works;

(b.) What measures are necessary to secure that end;

(c.) What is the estimated cost of such measures.

(2.) To maintain existing conservancy works in effective condition, including the construction of such new works as are necessary for that purpose.

(3.) To provide and maintain a channel from the Yang-tsze to Shanghai, having,

as far as circumstances and funds permit, a least depth of 20 feet at mean low water of spring tides over a least width of 900 feet.

(4.) To undertake such additional new works as may from time to time be

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