506

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There should be, as recommended in the memorandum of the Shanghai Foreign Exchange Bankers' Association, Chinese and foreign co-directors, with joint powers. supported by a foreign staff, comprising at least two assayers, three inspectors and an accountant, and by a skilled Chinese staff.

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The chief benefiters from the adoption of this advice would be the Chinese themselves, and if action along these lines is to be taken, there is no time to lose, for a Chinese director has been appointed, I understand. a site has been obtained, plans for the buildings are being considered and tenders for the necessary machinery have been called for.

In the course of the discussion of this subject. Mr. H. P. Holyoak, representing the Hong Kong Chamber, said :-

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We ought to press for nothing less that what Mr. Stitt asks for. And a particular emphasis should be laid upon the fact that every mint except the one at Shanghai should be closed; otherwise, we can see how the chaos which exists at the present time will be continued. The chaos is so great and so self- -apparent that one wonders something more direct has not been achieved. But so long as China is divided in every part of the country it is very difficult to accomplish the uniform reform without which no progress can be made.

Dealing with the Chinese Government's attitude. Mr. Archibald Rose, His Majesty's Commercial Secretary to Legation, said:

"I can tell you that from the date of the last conference this question has been steadily pressed by the Legation. When Sir John Jordan went back last year one of the first things he did was to go and see the Minister of Finance, and everybody else in authority, and he told me that he considered it one of the most practical things which had been brought forward at the conference. one about which there was no question as to the feeling of the community. He managed to raise so much interest in it that eventually a special meeting was called at which several important people were present. These people invited Sir John Jordan to dinner and the whole question was discussed, after dinner, it is true, but in a very careful and considered way. They all brought forward their ideas, and Sir John Jordan who was armed with all the evidence which the conference had given him brought forward every point which had been mentioned here. That meeting did a great deal of good in Peking. Since that time we have had numerous meetings about this, and I think we can say that there is at least a number of influential people in Peking who see that it is almost impossible to do anything without a measure of foreign control. I rather feel that one of the great advantages of the resolution which has been put forward by Mr. Stitt is that such resolutions strengthen the hands of those Chinese who are trying to get something done, I am certain there is a large number of Chinese who want reform on these lines and who realise without a measure of control no reformation is possible.'

DISORDER IN CHINA.

Gunboats on the West River and the Yang-tsze.

It was unanimously agreed:

That this conference views with grave alarm the state of unrest and lawlessness prevailing in almost every province in China, and the prevalence of unchecked piracy and brigandage in which the undisciplined troops are frequently the worst offenders. It protests against the utter failure of the Chinese authorities to deal effectively with this deplorable situation and urges His Majesty's Government to use its utmost endeavours to bring home to the Chinese Government the inevitable effect of such persistent neglect of duty on the trade and prosperity of the country."

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In moving this resolution on behalf of the Canton Chamber, Mr. Eager said:

This matter was discussed at length at the last conference and I can only say that, speaking from the experience we are now having in the two Kwangs, the state of affairs is worse than before. Of course this is not to be wondered at owing to the

even worse.

41

political strife at present taking place between the factious of Kwangsi and Kwang- tung, which, apparently, occupies the whole attention of the local authorities to the detriment of trade, and I am very much afraid that on the disbandment of soldiers, which may occur at any time at the cessation of these hostilities, conditions will be Although it is a fact that we enjoy a system of patrol carried out by five British and one American gunboats in the delta, these are insufficient to meet existing circumstances inasmuch as the gunboats are unable to navigate the smaller water- ways along which a larger proportion of the products of this province are borne. All merchandise coming into or being distributed from Canton goes in native carriers which travel in all directions and no system of foreign policing could. I fear, cope with the situation.

Prior to the inauguration of the republic there were a series of Chinese Government guard-boats anchored throughout the creeks which aided in keeping down piracy to some extent, and whilst the reinstitution of these might help matters, they could only be considered as part of a general scheme. There are in existence, on certain reaches, volunteer patrols arranged by the bigger villages but these are only local, self-protective movements, and could not be depended upon for any organised action.

The state of affairs is really ridiculous in so much that Chinese merchants are actually forced into paying to the various pirate chiefs a sort of insurance premium to obtain immunity from pillaging of their respective cargoes whilst in transit.

"A further point is that at the moment even respectable villages in some of the most affected districts are compelled to exist by preying on the water traffic as they fully realise the futility of either stock or agricultural farming when the result of their labours may be summarily seized without recompense by wandering bands.

The troops of the political factions are invariably behindhand in the matter of their

pay

and desertions are continually taking place. These deserters form small bands who live by force as long as they retain their military equipment to permit of their doing so.'

J

In seconding the motion on behalf of Hankow, Mr. Fraser said :—

"Luckily, Hankow has so far been free from actual hostilities in its immediate neighbourhood, but it is not a far cry from the Waban cities to Changsha, the capital of Hunan, and there, in the cockpit of so many fights in recent years, the play and counter-play of opposing factions has had full swing for a long time. It is as unfortunate as it is, however, true, that whatever tuchun or military Nabob wins in this game of 'king of the castle the man who foots the bill is the peasant or trader who pays not only in loss of wealth and dislocated trade but in murdered lives and ravished women.

"Probably no finer example of a thoroughly unscrupulous ruler could be found than the late Tuchan Chang Ching-yao, who battened on the very life-blood of the people he was supposed to govern and protect.

As regards brigandage on the Upper Yang-tsze, which affects us all so closely, it is, I feel, no exaggeration to say that the illegal squeezing, hold-ups, and robberies have brought about a state of affairs which would not be tolerated in any other country. As you are aware, the greater portion of the trade is the junk trade, the few steamers plying on upper river being quite incapable of handling anything but a small part of the cargo transported.

"So far, I believe, only two steamers have been boarded in port by armed bands, the steamships Ankong at Kweifu and the Robert Dollar 11,' both at Wanhsien and Ichang. Prompt action by gunboats saved the situation and avoided what might have been tragedies, but on the other hand. I believe every steamer that has been trading for any length of time between Ichang and Chungking has been fired on by armed soldiers, official or otherwise, especially on the 20-mile reach below Wanhsien. Some of these attacks have been of a very determined nature and it is only by a combination of luck and bad marksmanship that casualties have been few. British gunboats have been up and done good work in convoying, &c., and it is no doubt through their effort that British steamers' traffic is now comparatively free from attack. The great bulk of the trade, however, I mean the junk trade, is still being held up and subjected to squeeze by semi-independent generals who, well aware of the impotence of the Peking Government, take this method of enriching themselves and finding the wherewithal to pay their troops.

[5815 e-3]

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