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

AFFAIRS OF CHINA.

CONFIDENTIAL.

CD 16333

RECO

[February 13.]

Res 18 MAY 11 SECTION 4.

[5393]

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received February 13.)

(No. 38.) (Telegraphic.) P.

Peking, February 13, 1911. PIEN-MA. British consul at Tengyueh telegraphs as follows under date the 11th February (No. 4) : --

"On receipt of a request of information regarding the occupation of Hpimaw by 300 Chinese troops reported by Hertz, I have telegraphed as follows to the Government of Burmah:-

"Though I learn from a military official that a message arrived to-day to the effect that the disputed area has been evacuated by British troops, the Tengyueh authorities have, as far as I am able to ascertain, no definite knowledge regarding the arrival of Chinese at Hpimaw. I am informed that Prefect Chiang's instructions were not to risk hostilities, but, if possible, to occupy Epimaw.

"I have taken up a definite stand here, and yesterday there was a sudden collapse of all Chinese opposition, and the situation became unusually favourable. By agree ment with me, which was to be subject only to the Viceroy's ratification, the taotai arranged for the settlement of all pending questions and cases. He promised the immediate payment of outstanding compensations, to prohibit boycott officially, to seal consulate site deeds, and sign regulations and maps in the question of frontier cultivation.'

"The continued occupation of Hpimaw by Chinese would have serious prejudicial effect on our whole position and on our chances of securing a satisfactory settlement of the entire frontier which seems now in sight. Hpimaw is more important in the Chinese view than the line of frontier, aud if confirmation of Hertz' information is received I would most strongly urge that it is desirable to induce the Chinese to evacuate the place."

Our prestige cannot fail to be seriously affected by our evacuation and the continued occupation of Hpimaw by the Chinese, as the place has recently been the centre of public attention in China.

[1909

319

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