84

7. A royalty shall be payable to Government on the value of all precious stones found and removed by a licensee. Such royalty shall be at such rate, not exceeding fifteen per cent., as shall be fixed by the licence. Neglect to report the discovery of any such stone within a reasonable time shall involve the forfefture of the licence, and of all claim to have an application for a mining or prospecting lease favourably considered.

8. Such licence shall give no exclusive or preferential rights, but in considering rival claims for a prospecting licence or mining lease due regard will be had to opera- tions conducted under cover of an exploring licence.

24400.

(Extract.)

No. 62.

COLONIAL OFFICE to TREASURY.

*

Downing Street, October 9, 1900.

I AM directed by Mr. Secretary Chamberlain to acknowledge the receipt of your letter of the 6th of September respecting a recommendation which has been made by the Hong Kong and Shanghai Banking Corporation that the British dollar should be made legal tender at Wei-Hai-Wei.

I am to enclose for Their Lordships' consideration a copy of a despatch† from the Governor of Hong Kong on the subject, and I am also to invite attention to the 43rd paragraph of Sir F. Swettenham's report, a copy of which is enclosed for facility of reference.

Mr. Chamberlain is inclined to agree as to the desirability of introducing the British dollar into Wei-Hai-Wei but it is impossible to give the "reasonable assurance that the British dollars would be freely accepted " without consulting the local authorities; reference will be made to them in due course, and Sir F. Swettenham will also be consulted on the subject.

*

*

Mr. Chamberlain is in communication with the Marquess of Lansdowne and the Lords Commissioners of the Admiralty as to taking over charge of Wei-Hai-Wei (a copy of the letters to the War Office is enclosed), and he has suggested the 1st of January next as the date from which the administration of the dependency should be transferred to the Colonial Office, but so much must depend at present on military and naval considerations that it would be premature to make any immediate proposals to Their Lordships will regard to the expenditure of the coming year and the grant in aid which will be required to meet it. It can only be said that as far as this Office is con- cerned every effort will be made to keep the expenditure within narrow limits.

24400.

SIR,

No. 63.

COLONIAL OFFICE to ADMIRALTY. [Answered by No. 66.]

Downing Street, October 9, 1900. WITH reference to previous correspondence, I am directet by Mr. Secretary Chamberlain to request you to lay before the Lords Commissioners of the Admiralty the cnclosed copy of a report‡ upon Wei-Hai-Wei, which has been made by Sir Frank Swettenham containing proposals for its future administration. I am also to enclose a copy of a letters on the subject which has been addressed to the Secretary of State for War.

Mr. Chamberlain would be glad to be favoured at an early date with such observa- tions as Their Lordships may see fit to make on these papers.

I am,

&c.,

C. P. LUCAS.

33051.

85

No. 64.

COLONIAL OFFICE to TREASURY.

[Answered by No. 67.]

SIR,

Downing Street, October 18, 1900. WITH reference to paragraph 3 of the letter from this Department of the 9th instant, I am directed by Mr. Secretary Chamberlain to forward for the consideration of the Lords Commissioners of Her Majesty's Treasury a copy of a letter from Sir Frank Swettenham on the proposal to make the British dollar legal tender at Wei- Hai-Wei.

2. Mr. Chamberlain is of opinion that there can be no objection to the proposal, if the Commissioner reports favourably; but he presumes that the Mexican dollar would also be made legal tender at Wei-Hai-Wei as it is in Hong Kong and the Straits Settlements.

3. In this connection I am to ask you to draw Their Lordships' attention to the recent correspondence regarding the supply of subsidiary silver coin for Hong Kong by the Indian Mints, terminating in the letter from this Department of the 28th June last. It is assumed that all coin required for the Dependency should, if possible, be supplied by the Indian Mints, and Mr. Chamberlain proposes, if Their Lordships concur, to ask the Secretary of State for India whether the Indian Government would be prepared to undertake the supply.

I am, &c.,

34577.

(Confidential.)

SIR,

No. 65.

R. L. ANTROBUS.

FOREIGN OFFICE to COLONIAL OFFICE, (Received October 23, 1900.)

Foreign Office, October 22, 1900. THE Marquess of Salisbury has had under consideration your letter of the 9th instant,§ enclosing a copy of a report by Sir Frank Swettenham on the future administration of Wei-hai-Wei, and requesting that Mr. Secretary Chamberlain might be furnished with His Lordship's views on the various points dealt with therein.

1. As regards the manner in which the leased territory should be treated, viz., whether the precedent of Cyprus should be followed, or whether it should be dealt with as part of the British dominions as was done at Kowloon, I am to state that in regard to this last alternative Lord Salisbury is of opinion that the two cases are essentially different, in that Kowloon adjoins the Colony of Hong Kong, of which it forms merely an extension, whereas Wei-hai-Wei is distant more than 1,000 miles from the nearest British territory. Wei-Hai-Wei is held by Great Britain on the same terms that Russia holds Port Arthur, and on the understanding that it will be handed back to China if, and when, Russia gives up Port Arthur. When the instructions to Mr. Gray for drafting the Wei-hai-Wei Order in Council were under consideration, it was felt that to incorporate the territory in the British dominions would create a pre- cedent that would probably be followed by other Powers who had leased territory from China. Moreover an agreement has just been concluded with Germany in accordance with which Great Britain and Germany agree not to take advantage of the present complications to obtain any territorial advantages for themselves in China, and to invite the other Powers interested to give a similar undertaking. The present time therefore seems especially inopportune to make any change at Wei-hai-Wei, and Lord Salisbury adheres to the view that the precedent of Cyprus should be followed in dealing with it.

2.

Lord Salisbury fully appreciates the objections made by Sir F. Swettenham with regard to the continuance of Chinese jurisdiction within the walled city of Wei-hai-Wei, but in view of the express provision on the subject in the Convention of July 1st, 1898, His Lordship cannot assent to its being abolished except after communi- cation with the Chinese Government, and in pursuance of some arrangement arrived at with them in regard to it.

• No. 56.

↑ No 55.

‡ No. 52.

No. 61.

• No. 62.

† No. 59.

† 19076: not printed.

§ No. 60.

PUBLIC RECORD OFFICE

Reference :--

TTTTTNC.O. 882

6

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TOPage 151

86

Instructions will, however, be sent to Her Majesty's Minister at Peking to approach the Tsungli-Yamen on the subject as soon as an opportunity offers and to endeavour to arrive at an understanding for the withdrawal of the Chinese officials.

3. As regards the question of the rectification of the frontier where the line as at present drawn would pass through three villages, Her Majesty's Minister at Peking will be requested to arrange the matter if possible with the Chinese Govern- inent on the lines suggested by Sir F. Swettenham in paragraph 39 of his report.'

*

4. Lord Salisbury entirely concurs with Mr. Chamberlain in the view that the suggestion that the Chinese Government should be asked to include within the leased territory the whole of the promontory east of 121° 40′ E. is one that cannot be entertained.

5. Finally I am to state that Sir C. MacDonald will be asked to arrange if possible, though the China Consular Service is now short-handed, that Mr. Barton should remain for the present at Wei-hai-Wei.

I am, &c.,

FRANCIS BERTIE.

87

such adaptations as may be necessary to meet local requirements. Local considera- tions will determine whether there should be a special subsidiary coinage in silver and copper for Wei-hai-Wei similar to that of Hong Kong, or whether the Hong Kong subsidiary coins should be employed. But it will presumably not be necessary to wait for settled government in the dependency before taking the steps necessary to enable the British dollar to circulate on an equality with the Mexican dollar. Apparently a proclamation by the Commissioner will be sufficient authority for this purpose under present conditions, and he might be empowered to make the proclamation as soon as it is ascertained that he has no objection to the course proposed.

As regards the source of supply of special coins for Wei-hai-Wei it will be remem- bered that hitherto pressure of work has prevented the Indian Mints from undertaking coinage for Hong Kong and the Straits Settlements. So long as the present con- ditions prevail in India, it will have to be determined, on each occasion on which a demand may arise for coins for those Colonies or for Wei-hai-Wei, whether it can be most conveniently and economically supplied from India, from the Royal Mint, or from Birmingham.

36039

No. 66.

I am, &c.,

FRANCIS MOWATT.

SIR,

ADMIRALTY to COLONIAL OFFICE.

(Received November 6, 1900.) [Answered by No. 68.]

Admiralty, November 5, 1900. My Lords Commissioners of the Admiralty having had before them your letter of 9th ultimo, No. 24400,† enclosing a copy of a report upon Wei-hai-wei by Sir F. Swettenham, desire me to request you will represent to Mr. Secretary Chamberlain that the question of the administration of Wei-hai-wei was some time back exhaus- tively considered by Her Majesty's Government, when it was definitely decided that the War Office should be responsible for this, and accordingly General (then Colonel) Dorward was appointed Commissioner and Administrator, and sent out to relieve Commander Gaunt, then acting in that capacity.

As regards the island of Liu-kung-tau, the administration of which Mr. Cham- berlain considers should not be separated from that of the mainland, I am to state that the Naval interests there are sufficiently represented by the Naval officer who is now in charge of the Naval establishments on the island and of the man-of-war anchorage, for which he is directly responsible to the Naval Commander-in-Chief.

The proper discharge of these duties will amply occupy the time and energies of the Naval officer in charge, and My Lords do not therefore consider it desirable that this officer should be called upon to combine civil functions with his Naval duties.

36039.

SIR,

No. 68.

COLONIAL OFFICE to ADMIRALTY.

Downing Street, November 14, 1900. I AM directed by the Secretary of State for the Colonies to acknowledge the receipt of your letter of the 5th instant, regarding the administration of Wei-Hai-Wei. 2. The Secretary of State understands the first paragraph of your letter under acknowledgment to have reference to the military administration only, since as the Lords Commissioners of the Admiralty are aware, it has been decided that the civil adminis- tration shall be taken over by this Department.

3. It is presumed that as Their Lordships offer no observations on the other points raised in the letter from this Department of the 9th ultimo,† except that dealt with in the last two paragraphs of your letter, they are prepared to fall in with any arrangements that may be decided upon by the Secretary of State in consultation with the Secretary of State for War and the Lords Commissioners of Her Majesty's Treasury.

I am, &c.,

C. P. LUCAS.

I am, &c.,

EVAN MACGREGOR.

36401.

No. 69.

36401.

No. 67.

TREASURY to COLONIAL OFFICE.

(Received November 9, 1900.)

[Answered by No. 69.]

SIR,

Treasury Chambers, November 8, 1900. I HAVE laid before the Lords Commissioners of Her Majesty's Treasury Mr. Antrobus's letter of the 18th ultimo, and its enclosure relating to the proposal to make the British dollar legal tender at Wei-hai-Wei.

Mr. Lords concur with the Secretary of State for the Colonies in the opinion that the Mexican dollar should be made legal tender in the dependency concurrently with the British dollar. Ultimately it will no doubt be desirable to regulate the currency on the lines of the Hong Kong Currency Order in Council of the 2nd February, 1895, with

‡ No. 64.

• No. 52.

↑ No. 63.

COLONIAL OFFICE to TREASURY.

SIR,

Downing Street, November 16, 1900. I AM directed by the Secretary of State for the Colonies to acknowledge the receipt of your letter of the 8th instant, I respecting the legalization of the British dollar at Wei-hai-Wei.

2. I am to request you to inform the Lords Commissioners of Her Majesty's Treasury that the Secretary of State for War will be asked to cause a copy of your letter under acknowledgment to be forwarded to the Commissioner at Wei-hai-Wei, and to suggest that if he sees no objection and is satisfied that the British dollar would be accepted with sufficient freedom, he should issue a proclamation making it legal tender, together with the Mexican dollar.

I am, &c.,

• No. 66.

† No. 63.

‡ No. 67.

C. P. LUCAS.

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