[This Document is the Property of His Britannic Majesty's Government.]

AFFAIRS OF CHINA,

CONFIDENTIAL.

227

14858

SECTION 1.

i;

[11831]

(No. 66.)

(Telegraphic.) R.

No. 1.

Sir Edward Grey to Sir J. Jordan.

Foreign Office, April 4, 1911.

YOUR telegram No. 73 of 13th March: Pienma. We are satisfied that the Chinese claims to all villages to the west of the Irawaddy- Salween watershed other than Pienma, Kangfang, and Gawlam groups are wholly inadmissible, and you should inform the Chinese Government, in reply to their note of the 11th ultimo, that there can be no question of His Majesty's Government accepting the Kaoliang-Kung range, viz., the range forming the watershed between the Chipwi and Hpare Rivers, which amounts to a renewal of the line proposed by Taotai Shih in 1905.

As regards the proposal to appoint a joint delimitation commission, the experience of 1905 shows that unless at least the basis is settled between the two Governments beforehand no practical result is likely to be obtained by subordinate officers on the spot, and we could only agree if a clear understanding as to what this basis should be is first reached.

As regards the line to be adopted as the basis, you should state that the officer deputed by His Majesty's Government to visit and administer the country up to the watershed has confirmed the view consistently urged in the communications which have passed with the Wai-wu Pu that this line not only affords the most suitable frontier on geographical and administrative grounds, but is in fact, the only line offering any hope of a final settlement, and that, in the circumstances, His Majesty's Govern- ment must continue to press for its acceptance as the general basis of the frontier, subject to the understanding that any claims which China may be able to substantiate west of the said line will be dealt with in an equitable spirit.

You should at the same time renew formally the offer made in 1906 to compensate China by a money payment for the extinction of the personal claims of the Tengkeug chief west of the watershed. You may, however, in the event of China again declining to accept an arrangement on these lines, admit ber claims to the groups of villages mentioned in the first paragraph of this telegram, on the understanding that China is prepared to lease the territory in question to His Majesty's Government.

It is to be hoped that if the above terms are put to the Chinese Government with sufficient firmness we shall not have to consider the question of offering au alternative line, but in any case you should not offer the one indicated in the Viceroy's telegram of 26th March without first referring home for instructions.

As regards the proposed withdrawal of our troops on climatic grounds from Htawgaw, you should make it quite clear that the retirement is not necessarily permanent, and that His Majesty's Government reserve to themselves entire freedom to move their officers into or out of the country at their discretion.

As this instruction offers basis for negotiation it seems unnecessary to refer to suggestion of arbitration, especially in view of Chinese refusal to entertain previous requests of this character from us.

[1974 d-1

-1]

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