4
(governor) of Tarbagatai, in consequence of the refusal of the Chinese to authorise the transit transport of tea by Russian merchants from Kalgan through Kutchen and Urumtsi via the Horhos Pass and Djarkent because this direction had not been stipulated in the 3rd article of the regulations for land trade. Therefore the agree- ment has not at all the general meaning the Chinese try to give it. It was only intended to prevent our merchants from selling en route tea transported through Ili and Tarbagatai to Russia by buying a security. Besides, this arrangement has never been approved by the Imperial Russian Legation in Peking.
C O
[B]
14858
AFFAIRS OF CHINA.
RECR
[April 18.]
PEG 8 MAY 11
SECTION 3.
CONFIDENTIAL.
231
1
Enclosure 3 in No. 1.
Chinese Point of View on Tchugutchak Rules.
IT is true article 12 of the treaty of 1881 states that Russian merchants may deal in every description of produce, of whatever origin they may be, but this stipu- lation must be read in connection with the words “
" and " export
import." By no reasonable interpretation can "import" be made to mean reimport. Of course the sale of goods in transitu is strictly forbidden in the treaty.
The question of reimportation of tea into Chinese territory was brought several years ago, and an agreement was concluded between a Russian consul and the local authorities. This was in 1907. The 3rd article of this agreement states that its object was to explain clearly the Land Trade Regulations, and it went on to say that tea is a native produce of China, and should not be reimported into Chinese territory for sale, thus depriving the Chinese merchants of their livelihood. The 4th article reiterates the prohibition to Russian merchants to sell goods in
transitu.
The present question is, therefore, an old one, and was settled by the agreement
above mentioned.
The above agreement is known as "The Agreement on the Transportation of tea in Ili and Tarbagatai.”
[14195]
No. 1.
Sir C. MacDonald to Sir Edward Grey.-(Received April 18.)
(No. 57. Very Confidential.) Sir,
Tokyo, March 17, 1911. THE British representative in Peking has sent me a copy of his despatch No. 86 to you, dated the 23rd February, dealing with the recent complications in Russia's relations with China. With regard to the statement made therein by Sir John Jordan, that "the Japanese Minister is absent on leave, but from expressions which the Russion Minister has let fall it is evident that he thinks that the Japanese would prefer to have a monopoly of initiative in Chinose questious,” I would beg to make the following observations :--
The Japanese Ministor, Mr. Ijonin, called on me some time ago, shortly after his arrival on leave, and spoke with considerable frankness about the situation in China. He said that though there were many elements of unrest in the country he did not anticipate any serious danger in the immediate future. In his opiniou, there were two sources of trouble. One was from local uprisings in the provinces-these, he thought, could be dealt with by the central authorities, for in the main the Chinese were a very law-abiding and easily governed people. The second source of trouble was of a more serious nature, and consisted in disaffection and intrigue in the Central Government and Court. At the present time the Grand Council was composed of a body of men practically all venal, corrupt, and incapable; the Emperor was a child, and there were constant dissensions in the Palace. All this might eventually lead to serious trouble.
Personally, he was very strongly of opinion that the two Powers most interested in China, namely, Eugland and Japan, should come together and arrive at a clear understanding, on general lines, as to the policy to be pursued in China in case anything of a serious nature come to pass. In reply, I confined myself to saying that I thought his views were worthy of consideration."
At the Foreign Minister's reception to-day I mentioned what Mr. Ijonin had said, Count Komura remarked that it was somewhat early to give an opinion on Mr. Ijonin's views, but he thought that, in consideration of the existence of the Anglo-Japanese Alliance, and of our interests in China being along the same lines, it was very important that the British and Japanese representatives in Peking should be in close touch with each other, and he had given Mr. Ijouin instructions in this sense.
I am sending a copy of this despatch by safe hand to Sir John Jordan.
I have, &c.
CLAUDE M. MACDONALD.
[1974 s--6]