PUBLIC RECORD OFFICE

Reference :-

LICO. 882

6 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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To sum up the conclusions of the foregoing lines:—

Firstly. That the leasing and occupation of Wei-hai-Wei has proved to be an unfortunate undertaking, as the place is found to be incapable of fortification and defence except at a prohibitive cost, but that it is out of the question to abandon it altogether now, as England is pledged to retain it.

Secondly-It appears that His Majesty's Government cannot with any propriety break its word and go back on the public assurances given to Germany that England will make no railways inland from Wei-hai-Wei. In spite of its fine harbour, therefore, Wei-hai-Wei cannot be made a commercial part.

Thirdly. That as Wei-hai-Wei cannot be fortified or trade developed, it should be treated as a sanitarium only, and civil expenditure be reduced to a mimimum to make it self-supporting, and that the whole of the territory comprised in the sphere of military influence and three quarters of the leased area that is of no service to Government under the present circumstances be retransferred to China, and that the Chinese Government be asked to lease the Island of Chusan to Great Britain in exchange for this territory and such other payment or settlement, in addition, as China might claim.

Fourthly-That Chusan is understood to be capable of being strongly fortified and made into a second Gibraltar and key to the Yang Taze Valley, and that Chuaan is better than Wei-hai-Wei because from this base Great Britain will be in a better position to protect the trade of the mother country, India, and the Colonies, with China, and extend her political influence and prestige in her sphere of interest in the Yang Taze Valley.

Wet-hai-Wei,

31.8.02.

G. T. HARE,

Secretary for Chinese Affairs,

Federated Malay States, Acting-Assistant British Commissioner,

Wei-hai-Wei.

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