105

Chinese Customs stations must be withdrawn from new territory, their task of preventing smuggling to and from Hong Kong will be rendered practically impossible and exceedingly expensive. A very large area would have to be surrounded with preventive stations and boats. As all the neighbouring islands are included in area leased, there is on west and south sides of Hong Kong no land on which to put stations that could afford a refuge for patrol boats.

They protest strongly, in view of our previous assurances, against complete withdrawal from leased area of all their Customs stations.

In my opinion they will have strong reason to complain if they are forced to remove all their stations completely off our territory; and some compromise should, I consider, be offered them which would give a fair chance of preventing smuggling.

The alternative is a renewal of the old blockade of Hong Kong under more difficult conditions for China, and for the Colonial Government and the junk people too, in the long run.

Enclosure 2 in No. 78.

Paraphrase of a telegram from SIR C. MACDONALD, Peking, D. 10 a.m., R. 9 8.m., March 23, 1899.

(No. 80.)

Yamên inform me Kowloon Commissioner of Customs has been told by Governor of Hong Kong that all Custom stations must be withdrawn from Colonial territory by 1st proximo, or China will be responsible. They beg me to submit their case to you, as explained in my telegram of yesterday's date (No. 79), for Her Majesty's Government's favourable consideration, and to ask Colonial Government to suspend action. telegraphing to this effect to Hong Kong.

and by the Tsungli Yamnen in their letter to Sir Claude MacDonald of the 29th of May last.

The export of arms, to which reference is also made, can be dealt with by Proclamation. In proposing, therefore, to collect the opium revenue for the Chinese Government, and to carefully police the lands and waters of the leased territory, Her Majesty's Government are taking what they consider to be the best steps for the fulfilment of their pledges, and Mr. Chamberlain feels that he has little to add to what was expressed in the letter from this office of the 22nd instant except to repeat his conviction that under no circumstances would it be possible to entertain the idea of allowing any form of Chinese customs jurisdiction within the Colony.

It is estimated by the Colonial Government, though it might not be well to com- municate the fact to the Chinese Authorities, that the proposal that the Hong Kong Government shall collect the customs dues on opium for the Chinese Government will actually entail loss of revenue on the Colony, inasmuch as the result will be to more effectively prevent smuggling and thus to make the opium farm less profitable; but Mr. Chamberlain is prepared to sanction some loss of revenue if the perpetual annoyance to which the opium question has given rise in the past can be removed,

It is obvious that this will not be the case if within the limits of the colony and the leased territory Chinese officials are exercising authority and interfering at every point with trade.

5. Unless, therefore, Lord Salisbury sees any necessity for further delay, Mr. Chamber- lain would not propose to issue any further instructions to Sir H. Blake as to the postpone- ment of the occupation of the territory.

Art.

6. In connection with this subject Mr. Chamberlain desires me to call attention to V. of the Treaty between the German Empire and China, printed for Parliament at p. 70 of [C. 9131], and would suggest that enquiry might be made through Her Majesty's Ambassador at Berlin as to what customs arrangements have been made between the German and Chinese Governments.

I am

8260 S.

No. 80.

I am, &c.,

CP. LUCAS.

PUBLIC RECORD OFFICE

Reference :-

TIITLC.O. 882

5 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

7361 S.

(Secret.)

No. 79.

COLONIAL OFFICE to FOREIGN OFFICE.

[Answered by No. 90.]

Downing Street, March 29, 1899.

SIR,

I AM directed by Mr. Secretary Chamberlain to acknowledge the receipt of your letter of the 23rd instant* enclosing copies of two telegrams from Her Majesty's Minister at Peking respecting the proposed removal of Chinese Customs Stations from Hong Kong and the newly leased territory.

2. I am at the same time to enclose, to be laid before the Marquess of Salisbury, a decipher of a telegramt from the Governor of Hong Kong on the same subject.

3. The question of allowing Chinese Customs Houses or Officers or Chinese Revenue Cruisers to remain within the limits of any part of the lands or waters of the Colony, including the leased territory, has already received the most careful consideration; and in the letter from the Foreign Office of the 10th December last Lord Salisbury expressed his concurrence in Mr. Chamberlain's opinion that Sir R. Hart's proposals on the subject are inadmissible.

4. It appears to Mr. Chamberlain that the representations now made by the Chinese Government do not materially alter the case. Her Majesty's Government have given a pledge to China that on the territory being handed over they will take all possible pre- cautions to prevent the leased area being used to facilitate smuggling into China or in any other way to the detriment of the interests of China. Notwithstanding the representations now made to the contrary, it can hardly be doubted that the smuggling question, so far as China is concerned, is in the main represented by the opium question. All previous agreements and correspondence have invariably had reference to this one article, and it is opium which is specifically referred to by Sir R. Hart in his letter the 27th of June last§

• No. 78.

† No. 77.

‡ No. 52.

Enclosure in No. 20.

M

GOVERNOR SIR H. A. BLAKE to MR. CHAMBERLAIN.

(Paraphrase.)

(Received 2.50 p.m., April 1, 1899.)

TELEGRAM.

[Answered by No. 87.]

INCLUSION of Sham Chun in concession refused by Chinese Government. Party sent to erect mat sheds inside boundary decided upon by Lockhart and Chinese Commission have returned to day, having been stopped by the people, who threatened to kill them. Have to day received copy of placard posted in district calling upon the people to arm and resist occupation of territory. Proceed to Canton this evening to interview Viceroy, and have troops sent to protect (?) parties building sheds and surveying. I propose to hoist flag as soon as sheds are ready further delay would involve danger.

8307

8.

(Confidential.)

No. 81.

FOREIGN OFFICE to COLONIAL OFFICE.

(Received April 3, 1899.)

[Answered by No. 88.]

1

THE Under-Secretary of State for Foreign Affairs presents his compliments to the Under-Secretary of State for the Colonies, and is directed by the

Mr. Ironwide.

Tel. No. 87, April 1. Secretary of State to transmit, for the information of Mr. Secratary Chamberlain, the accompanying copy of a telegramı, as marked in the margin, relating to the extension of Hong Kong.

Foreign Office,

April, 1899.

• Enclosure in No. 19.

↑ No. 76.

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