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matters, appointed to carry them info e ecution. The leading place in the committee is taken by six members, who are styled "representatives," and include prominent local persons such as Chang Lan ch'ing, manager of the Bank of China, Tsao Yao ching and Han Chen chib, chairinum and vice-chairman respectively of the Chamber of Commerce, and three members of the gentry.

On the 19th June the representatives nudressed a petition to the Toyin for tranamission to the military and civil governors advocating the proposals made at the meeting. A copy of this petition in Chinese, together with translation forms, is enclosed in this despatch (Enclosure 7).

The Taoyin then addressed a petition, which is undated, to the provincial anthorities, making eight proposals of measures necessary for the restoration of Ichang and the preservation of order in future. A copy of this, with translation of the relevant important parts forms Enclosure 8. The Tayin proposed that (suggestion) only a small number of troops should be stationed here; that (suggestion 3) special barracks shoull be constructed for them so that they should not live, as now, in all quarters of the town; that suggestion 4) the Chinese Goverment shoukl take the initiative in proposing the laying-out of a settlement before it is extorted from them by foreign Powers, after which the question of the adoption of suitable regulations, such as those of Wuhu or C'hefoo, could be discussed.

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On receipt of your telegram No. 8 of the 22nd June, I requested Messrs. Chen, Ma and Huang, who had been elected members of the committee, to call on me, making that I merely wished to ascertain from them what progress was being made in appear their settlement schenie, as they had come to see me on the subject before.

After some conversation, I said that a settlement would be useless if soldiers continued to be stationed here; there would be a constant danger of the native garrison mutiuying, as they had done before, and at such a time they would certainly not respect the settle- ment unless a sufficient foreign guard were here to keep them out. We could not count on always having gunboats able to put a landing force ashore which would be sufficient for the purpose.

The only alternative would be for the foreign Powers to keep a permanent international garrison in Ichang. The best course would be for the Chinese residents themselves to deinand that no mative troops whatever should be stationed in Ichang or within a radius of 100 li from it; if it was necessary to send troops through Ichang they should not be allowed to spend more than thirty-six hours here, and that only on the side of the river opposite the town. I instanced the danger Ichang had run when the Patung troops were transferred, as reported in my despatch No. 26 of the 8th July. If we had no troops within 100 li of fchang, the place would no longer be in danger, and even a settlement would not be a necessity. I told them that the most important point to press for was to have no troops here, and that the question of having a settlement was subsidiary to it

Mr. Huang, I would mention, has been sent to Peking in connection with the settlement proposals, so only Mr. Chen and Mr. Ma were present at the interview. Both cordially agreed in the views I had expressed, and promised to discuss them with the other members of the committee, the Chamber of Commerce and other persona interested, after which they would address another petition to the Taoyin on the subject. I suggested the desirability of holding public meetings to discuss the subject, and impressed on them the necessity of prominent members of the gentry and merchants supporting the movement.

Prior to this interview I had expressed the above views to the agents of Jardine, Matheson und Co., Butterfield and Swire and the Asiatic Petroleum Company, and, finding that they agreed with me, asked them to impress them as coming from them- selves on their compradores, who are all members of the Chamber of Commerce. I also spoke in a similar sense to British, American and Belgian (Catholic) missionaries, asking them to express the same views to prominent Chinese with whom they come into

contact.

The day after the interview the Taoyin called, saying that he had been summoned to Wuchang to discuss the restoration of Ichang; he asked how I thought the security of the place could best be maintained in future. I said that I understood Chinese were talking of a settlement, but that this would be useless so long as troops were stationed here, and expressed the same views as I had done to Messrs. Ch'en and Ma. It then transpired that the latter had reported my interview with them to him, and he said that he was in cordial agreement with my views. He had already sent a petition to the Governor, copy of which he promised to let me have (copy enclosed), suggesting that only a small number of troops be stationed here. I asked if he would advocate none at all being here, to which he replied that that was a difficult thing for him, as a Chinese

official, to do but if the representatives of the gentry and merchants sent in sucl: petition to him, he would forward it to the Governor without comments of his owIL.

Some days later Mr. Chen called and told me that my views had been discussed by the committee and with other persons concerned, including the Taoyin. All without exception cordially approved of them, and a further petition, copy of which he would send me, would be addressed to the Taoyin on the subject.

After much pressure and delay, I have received a copy of this petition (copy enclosed), which is very disappointing, as the suggestion that no troops be stationed here only appears in the usual heading describing the contents of the document. In the body of the petition the writers only venture to say that "the present reduced number of troops would seem to be sufficient," and end up with the prayer that "for the present no large number of troops be stationed here."

Whilst Mr. Chen told me that this petition had actually been sent to the Taoyin, he has since written to say that it cannot be regarded as having been presented officially. The draft was shown him, and he had suggested their delaying sending it in until he had discussed the matter verbally with the Tuchun during his visit to Wuchong. Whilst the Taoyin is, I think, in favour of the proposal, he wants to make quite sure that it will be safe for him personally to send it in before actually doing so. The attitude of the gentry and merchants, all of whom cordially support the idea, is the same, and I doubt if it will be possible to get them to take any greater initiative or to state their wishes more clearly than they have already done, All fear the future vengeance of the Tuchun or other authorities if they make any unpalatable proposals, and would much prefer that the foreign Powers should make the demand and get the odium for doing so, whilst they will reap the benefits and be the first to heap us with obloquy for the step whenever such action suits them. Rather than incur the anger of the Tuchun they will cease their efforts to obtain the removal of the troops or a settlement altogether.

Mr. Chen and others concerned will not take any further step in the matter until they hear the result of the Taoyin's visit to Wuchang

The instructions given to the Commissioner of Customs, whom I duly consulted, were to support the proposal, but, as a Chinese Government employee, to keep in the background, and all that he has done is to express casually à favourable opinion regarding the project to a few of the leading Chinese in mercantile circles.

The Rev. Mr. Kearney, with whom I discussed the matter, called a general meeting of the foreign community, at which the resolutions forwarded herewith were passed unanimously. Some twelve or thirteen persons only attended this meeting, but these included persons of British, American, Belgian, Dutch, Swedish and Japanese nationalities.

Copies have been sent to the Japanese consul and myself with the request that we transmit them, with our support, to our respective Ministers. Those of American, Belgian, Dutch and Swedish nationality undertook to forward copies to their respective consuls at Hankow for the same purpose.

Publicity is also being given to the matter by sending copies to various

newspapers.

According to Hankow native newspapers, Wang Chan-yuan has telegraphed to the Premier stating that the question of a settlement at Ichang cannot be considered. The most important matter to be dealt with is that of the foreign claims, which will be settled in Ilupei if possible. If not, he will refer them to Peking

Another, presumably inspired, paragraph in the newspapers states that all natives of Ichang resident in other places are opposed to the establishment of a settlement here; those in Ichang in favour of it are represented as being only a few who are closely connected with foreigners.

The chief point seems to me to be the neutralisation of the port; once that is gained a settlement does not appear to be an absolute necessity. In this connection I would refer you to the remarks contained in my despatch No. 28 of the 27th December last. Ichang has progressed without a settlement ever since it was opened, and can A settlement would not afford any more protec- presumably go on in the same way.

as it could be tion than we have at present if soldiers remain in the neighbourhood," overrun by them at any time, as was done in November last and on the 4th June, unless gunboats able to laud from 70 to 100 men are permanently here or an inter- national garrison of regular foreign troops to a similar number is kept in Ichang.

I would mention that the foreign community of Ichang is too small to make it possible to raise any adequate volunteer force.

In stating above that a settlement is not an absolute necessity, I do not wish to

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