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461
should have a formal conversation to decide which of us is in the
wrong. This is the diplomatic method (Chiao She Pan Fa) and by this procedure the rights and wrongs of the case can be settled.
We can afterwards discuss what facilities can be afforded to the
Green Island Cement Company. On the other hand, should you admit
that the treaties have not been broken, but merely ask for the
facilitation of supplies of limestone in future, then we shall to-
-gether consult how to help the Company. This is the commercial
procedure (Shang Yoh Pan Fa) and the matter can be settled in a
friendly spirit.
Should a contract be entered upon between the Company
and a Chinese merchant, who therein infringes the law, that con-
-tract cannot be carried into effect, and those with whom it was
made will suffer loss. Such loss cannot be imputed to the fault of
the Government. The sole concern of the Government is to punish
and caution the Chinese merchant who violates the law. Government
cannot allow a person violating the law to carry out an illegal
contract. When a contract contains matter at variance with the law
of a certain (foreign) country, that country must not enforce its
completion. The contract concluded with the merchant Lu was in
part illegal (i.e. he engaged in smuggling) and accordingly he
forfeited the right to supply stone. The contract should, therefore
not be completed. This is not the fault of the Government.
776
In your letter you say that our procedure in regard
to mines is unreasonable, and that we did not previously issue a
general notice. That is a matter of domestic concern.
I would request you to give the above points your
very careful consideration, and trust that you will take the pro-
-per point of view. I hope that by so doing the matter will be
promptly settled.