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

2319

[B]

14858

AFFAIRS OF CHINA.

Mace

Pro 8 MAY

CONFIDENTIAL,

[April 24.]

SECTION 2.

[15158]

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received April 24.)

(No. 139.) Sir,

Peking, March 31, 1911. MY despatch No. 132, Confidential, of the 23rd instant gave an account of the course of the negotiations between Russia and China up to that date, and it only remains to complete the history of this somewhat unexpected episode in the relations of the two Powers,

On the 24th instant it was announced that the Russian Minister had been instructed to deliver what was practically an ultimatum to China. The Russian Government insisted on the acceptance by China of the interpretation which the Russian note of the 16th February placed upon the treaty of 1881. China, it was admitted, had already answered most of the points in the note in a satisfactory manner, but she was required to recapitulate her replies in a formal note within three days and to rectify the omission in previous notes of all reference to monopolies. If China complied with this demand the Russian Government would be ready to consider any modification which it might be desired to introduce into the terms of the 1881 treaty, while a refusal would leave the Russian Government free to take such measures as they deemed necessary.

The note in which these instructions were embodied by the Russian Minister began by stating that the negotiations of the past month had convinced Russia that the Chinese Government by its reservations and evasions was attempting to reject the principles of Russia's previous note of the 16th February. The Chinese reply of the 18th March, while recognising that a Russian consulate could be established at Kobdo independently of the question of a tariff, failed, it was pointed out, to make any mention of the monopolies which had been established in contravention of the terms of the treaty.

The Chinese note had, it was added, still further ignored the treaty rights of Russian merchants by placing them on the same footing as Chinese subjects with regard to trade in local products.

Recognising the futility of such negotiations, the Russian Government considered it necessary to demand an explicit and formal assurance that the points raised in the Russian note of the 16th February were in exact accordance with the provisions of the 1881 treaty. Only after the Chinese Government had given such a confirmation of its previous assurances would the Russian Government be prepared to consider what amendments could be made in the treaty. Russia would wait for a reply until the 28th March, but China was warned that unless an exhaustive and satisfactory answer to all the six points in the Russian note of the 16th February was received by the above date, Russia would take such measures as she considered necessary and throw upon China the responsibility for a rupture.

The Chinese reply was dated the 27th March, and a rough translation of what purports to be its text is enclosed herewith. It will be seen that it recapitulates all the various points in dispute, repeats and amplifies former assurances, and inferentially concedes the Russian demand regarding monopolies.

The contents of this note were telegraphed to St. Petersburgh, where China's complete acceptance of the Russian demands appears to have been received with great satisfaction.

On the other hand, the Russian Legation here continues to be very sceptical about the practical outcome of all these assurances, and does not consider that they will contribute materially to the settlement of outstanding questions. I have, &c.

J. N. JORDAN.

(1974 aa-2

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