12
In view, however, of the fact that the provincial authorities had, by the supple- mentary agreement of the 2nd August accepting payment of the 100,000 dollars and extending the prospecting period, committed themselves practically beyond recall, it was decided to communicate both agreements to the Central Government without delay and to ask for early ratification.
Mr. Sun having stated that he was fairly confident that there would be no serious opposition to the commencement of operations in the event of a purely Cantonese administration replacing the defeated Kuangsi leaders, I informed Major Cassel that he would be well advised to take advantage of any opportunity to proceed with the work of demarcating the mining areas on the arrival of his engineers without waiting for ratification, and you will observe that in my note of the 30th October to the Wai-chiao Pu, of which copy is enclosed, I have intimated that demarcation would commence forthwith.
It was also decided that as Mr. Sun was well acquainted with Mr. Liang Shih-yi, through whom this Legation and other British capitalists had previously endeavoured to work for a similar coal-mining agreement, and who is still unofficially a power in Cantonese circles here, he should take an opportunity of mentioning the agreement privately to Mr. Liang and enlisting his support with the Central Government. Mr. Sun accordingly prior to his departure from Peking informed Mr. Liang in outline of the existing arrangements, and a copy of the agreement will shortly be handed privately to the latter by the Legation.
Up to date no reply has been received from the Central Government on the subject of ratification, but I propose to take an early opportunity of pressing the matter on the attention of the Minister for Foreign Affairs, and, although an immediate decision is hardly to be expected pending the resumption of relations between Peking and the newly-installed provincial authorities at Canton, you will also no doubt continue to use your influence with the latter in the desired direction.
As was to be expected, rumours of the conclusion of the agreement have not been long in making their appearance. A brief and garbled-if not deliberately camouflaged reference appeared in the Japanese-owned "Shun Tien Shib Pao" of the 10th instant, and I have just received a formal enquiry from the American Legation as to the of the reports which have reached them on the subject.
accuracy
This enquiry is no doubt not unconnected with a similar enquiry addressed to the American Legation by Sir John Jordan on receipt of Mr. Jamieson's telegram No. 33 of the 7th October, 1918, reported a proposed American monopoly of mining rights in Kwangtung then under negotiation.
I have informed the American Minister that we have been for years past endeavouring to co-operate with the Chinese with a view to mitigating the coal shortage in Canton province, which specially affects Hong Kong, that an agreement has now been made with the provincial authorities at Canton for the prospecting and working of coal in certain districts by a Sino-British company, but that there is no British monopoly of mining and railway rights in the province as has been alleged.
If approached by your American colleague you should use similar language and report any indication of attempts on his part to interfere with the local authorities in a manner adverse to our interests.
(Translation.)
13
Enclosure 10 in No. 1.
Wai-chiao Pu to Sir B. Alston.
Sir,
December 20, 1920. I HAVE the honour to acknowledge the receipt of Mr. Clive's note of the 30th October last, stating that an agreement has been concluded between the Kwangtung provincial authorities and an Anglo-Chinese syndicate, whereby a joint Anglo-Chinese company is to be formed for the purpose of mining coal in certain districts of the province, and enclosing the agreement with the request that I communicate it to the Chinese Government and use my good offices to ensure their approval at an early date.
This Ministry having referred the matter to the Ministry of Agriculture and Commerce, the latter have now replied as follows :—
This Ministry have the honour to refer to its communication requesting your Excellency's Ministry to notify the Diplomatic Body that no mining agreements concluded by foreigners with provincial authorities can have force unless the sanction of the Central Government has been given. The present coal-mining agreement concluded between the Kwangtung authorities with British merchants had not received the sanction of this Ministry and must consequently be deemed invalid.
"With regard to Sino-foreign co-operation, this is indeed allowed by the mining ordinance, and there was originally no disposition on the part of the Chinese Govern- ment to reject foreign offers of capital for the joint operation of China's mines. When, however, a company not yet actually formed has the boldness to seek mining rights over twenty-one districts under conditions which come near to constituting a monopoly, this Ministry is, in the interests of the preservation of national rights, unable to accord its sanction.
I have the bonour to refer your Excellency to the notes addressed on more than one occasion by this Ministry to your Excellency's Legation to the effect that mining agreements concluded by foreigners with provincial authorities must have the sanction of the Central Government, and regret to inform you that, in view of the fact that in the case of the present coal-mining agreement concluded by British merchants with the Kwangtung authorities, the procedure has been at variance with that required according to the declarations made by this Ministry. It is not possible to take the action desired.
In informing you as above, and requesting that you communicate it to the quarter concerned,
I avail, &c.
(Seal of the Wai-chino Pu.)
(Copy unsigned.)
Enclosure 11 in No. 1.
My dear Minister,
Enclosure 9 in No. 1.
Mr. Clive to American Minister (Peking).
Peking, November 20, 1920. I AM in receipt of your enquiry of the 15th instant. Your Legation are no doubt aware that British commercial interests have for years past been endeavouring to co-operate with Chinese commercial interests with a view to mitigating the coal shortage in Canton province which specially affects the colony of Hong Kong. I have therefore no objection to stating, for your confidential information, that an agreement has now been reached with the provincial authorities of Kwangtung for the prospecting and working of coal in certain districts of the province by a joint Sino-British company, but there is no British monopoly of all mining and railway rights in the province as your informant appears to allege.
I avail, &c.
R. H. CLIVE.
Consul-General Jamieson to Sir B. Alston.
(No. 12.) Sir,
Canton, February 22, 1921. I HAVE the honour to enclose herewith copy of a leading article on
"British Influence in Kwangtung," which appeared in to-day's issue of the "Canton Times" -the organ of the military Government and which, there is every reason to believe, has been inspired, if not written, by Mr. C. C. Wu. At the end of January the editor, who had edited this journal since its inception, resigned when asked not to insert any matter antagonistic to the project for obtaining control of the customs-houses in the south-west provinces, and shortly afterwards the proprietors for lack of leader-writers had to shut down the paper for twenty days.
The statement that the big stick of blockading the port is constantly held over the bead of Kwangtung is inaccurate, inasmuch as it was only when the attempt to interfere with the maritime customs was made that action of this nature was hinted at,
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