44
2
future of Chinese navigational rights, but that there were all sorts of rumours. abroad, and, having regard to the rapid building of new steamers by Japan, suspicion had arisen that the authorities of the two countries had arrived at some understanding on the subject. Perhaps it was the Japanese themselves who purposely spread abroad these rumours, but they (the interviewers) asked the Minister for Foreign Affairs for a clear statement on the subject.
4. Dr. Wang denied that there was any understanding with Japan, but pointed out that the question whether there was any danger that after resumption of China's navigational rights the supply of Chinese-owned steamers for the transport of passengers and goods within Chinese territory would be unequal to the demand was one for the close attention of shipping interests. Japan had never allowed foreign shipping the right of coastal or inland navigation in Japan itself until last year, when the opening up of navigation was begun. Whether this action had any hidden motive towards foreigners he was, of course, unable to say, and in any case it would be idle to inquire, as all countries had their own principles. In fact, the National Government of China, in handling foreign affairs, had its own principles, and in the forefront of these were national rights. There would certainly be no inconsistency between the Government's words and its actions; his interlocutors could rest assured on that point.
Before withdrawing, the interviewers expressed the opinion that Chinese- owned steamers would be sufficient to cope with the passenger traffic between Shanghai and seaports in the north and south, as well as ports on inland waters. Although there were at present more foreign than Chinese steamers plying in the Yangtze valley, there were the ships of the China Merchants' Steam Navigation Company, the San Peh Steam Navigation Company and the Ning Shao, Chao Hsing and Nan Hua Companies, numbering more than twenty, running regularly. There was, therefore, no danger of the supply of ships being unequal to the demand. After the resumption of navigational rights, there would be an immediate expansion of Chinese merchant shipping and an increase of capital subscribed for the building of ships. It was to be hoped that the Government would extend all necessary protection.
6. On the 10th September, the Association for the Resumption of Navigational Rights elected Mr. Yü Ya-ching (managing director of the San Peh Steam Navigation Company and a member of the Shanghai Municipal Council) president of the association. It was decided to telegraph to the Central Government, to the Legislative and Executive Yuans, and to the Ministries of Foreign Affairs and Communications, and to circularise all shipping organisations and unions at Shanghai. Subsequently, a telegram was sent to the Central Government calling attention to the impotence of China in the face of the possession of extra-territorial rights by foreigners, of the stationing of foreign troops on Chinese soil and the navigation of inland waters by foreign steamers, and expressing the hope that in the forthcoming treaty negotiations with Japan the Chinese Government would not allow itself to be hoodwinked, but would insist on the abrogation of the privileges of coastal and inland waters navigation enjoyed by Japanese shipping in China.
7. Anticipating that the Government will follow a strong line, and that the privileges of foreign shipping companies will soon be abolished or curtailed, a group of wealthy Chinese, consisting mostly of prominent ex-officials whose money is lying idle in banks in Japan or America earning a low rate of interest, have recently thrown out feelers to discover whether British shipping companies, such as the China Navigation Company and the Indo-China Steam Navigation Company, would be prepared to consider an offer to purchase their fleet of ships together with their wharves, warehouses, &c., in China. The group referred to, which is said to include Lord Li Ching-mai, Mr. Fu Siao-en, General Sun Chuan-fang and other rich Chinese, profess to have at their disposal a capital of 64 million dollars. I under- stand that the proposal, which at present is nebulous, is that there should be a holding company with subsidiary companies, and that ships plying between Hong Kong and Shanghai or some other port in China, and not touching at any inter- mediate ports on the way, should be owned by a subsidiary company incorporated in Hong Kong in which there should be certain Chinese co-directors, and ships plying coastwise, i.e., calling at intermediate_ports, should be owned by a purely Chinese company and fly the Chinese flag. The foreign personnel, both of ships, wharves, &c., would be retained as far as possible.
8. My informant, who is anxious that his identity should not be disclosed, is a British subject in the employ of one of the Chinese Government Departments, and was approached in this matter by a Chinese ex-naval officer who represented that