COF Y.
No. 18.
RECE
454
1! 177
H. B. L. Consulate-General,
Canton, Karch 2, 1914.
10590 MAR 14
{
Sir,
I have the honour to acknowledge the receipt of Your Excellency's Despatch No. 16 of February 26 on the subject of my report to His Majesty's Minister regarding the monthly claim of the Creen Island Cement Company for ompensation in respect of the embargo placed by the Provincial Governm at on tue export of liшwtone.
In reply I have the honour to point out that the ultimate decision as to the admissibility of this claim rents entirely with Sir John Jordan but I would permit myself the following remarks thereon. The attitude of the Provincial Government whilst administered by Chen Chiung
undoubtedly Ming was monopolistic and hostile to the Company. The advent of the present Tu Tu and the pressure which, with the assistance of His Majesty's Legation, I was able to bring to bear, however, resulted in an earnest endeavour to effect a settlement. The imposition towards the end of November last of 81.00 per ton on stone for export may be described as a temporary concession to popular clamour for protection and was almost immediately abandoned. In the course of subsequent negotiations, moreover, I have received emphatic assurances from the Government that they desire to see the resumption of export and that the Company will not be subjected to differential treatment. I am prepared to attach more credence to these authoritative assurances than to interested statements made by the contractors. I would again explain that there are no Treaty rounds for protesting against provincial taxation of native produce, so long as produce for export is not subjected to differential treatment, and I adhere to my previously expressed opinion that were the Company to send a responsible foreign representative to discuss matters with the Commissioner of Industry there should be no difficulty in arriving at
a mutually satisfactory understanding.
It is obvious that I cannot enter into contracts on
behalf of the Company and only within the last two or three days the officials have expressed to me their surprise that so far little or