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

475

AFFAIRS OF CHINA.

CONFIDENTIAL.

[18028]

(No. 159. Sir,

Confidential.)

[May 12.]

10657

SECTION 3.

No. 1.

16 JUN 11

Sir J. Jordan to Sir Edward Grey.-(Received May 12.)

Peking, April 18, 1911. THE China Association at Shanghai recently approached His Majesty's consul- general with a request that he would institute enquiries into certain allegations made with respect to Japanese trading methods in Manchuria.

The indictment is set forth in detail in the accompanying copy of a despatch addressed by Mr. Fraser to His Majesty's consular officers at Mukden and Dairen, and amounts to a suggestion that Japan is smuggling her manufactures into Manchuria on a large scale.

The conclusions at which Mr. Willis and Mr. Horne have arrived after consultation together are that the import of Japanese cottous into Manchuria has greatly increased during the past two years, mainly at the expense of American products, but that the fact that Japanese importers make at present at least as much use of Newchwang as of Dairen would seem to dispose of the innuendo that Japanese goods are only making their way by taking advantage of the incompetence or corruption of the Dairen customs. The accompanying memorandum compiled by Mr. Willis and Mr. Horne throws some interesting light on the various points raised by the China Association.

The matter being of a highly confidential nature I have instructed His Majesty's consul-general at Shanghai to abstain from communicating the results of this enquiry to the China Association for publication. In view, however, of the fact that that enquiry has to a very great extent failed to substantiate the charges suggested, you may think it advisable to communicate the result to that body confidentially, if they should address you on the subject.

Enclosure 1 in No. 1.

I have, &c.

J. N. JORDAN.

Consul-General Fraser to Acting Consul-General Willis.*

(Very Confidential.) Sir,

Shanghai, February 27, 1911. THE China Association at this port having asked me to obtain confirmation or refutation of certain serious allegations (set forth bolow), in connection with the importation of Japanese goods through Dalny into Manchuria, I have the honour to forward the gist of the indictment of Japanese methods which has been shown me in strict confidence.

You are, of course, familiar with the rapid development of Japanese import trade with China, and can check the following comparative table alleged to be compiled from Japanese official publications :---

Yern-

1908.

1909.

1910.

Up to 20's

kin

Over 20's

}}

47,649,826 2,702,220

73,543,182

94,305,580

4,120,264

6,862,187

Imitation nankeens

Cotton flannels.

pieces yards

2,275,012

2,615,905

3,473,606

4,509,482

6,478,901

9,778,139

Grey shirtings and sheetings

39,773,586

54,762,285

54,598,810

Cotton drills and twilled shirtings..

>>

18,294,292

27,623,816

47,787,068

[2023 m →3]

* Also to Consul Horne.

B

$

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