40865
SIR,
130
No. 124.
COLONIAL OFFICE to TREASURY.
[Answered by No. 125.]
Downing Street, October 9, 1902. I am directed by Mr. Secretary Chamberlain to transmit to you, for the con- sideration of the Lords Commissioners of His Majesty's Treasury, with reference to the letter from this office of the 27th_ultimo,* a copy of further correspondence† with Sir T. Jackson, Bart., on the subject of currency and banking arrangements a Wei-hai-wei.
2. In view of this letter, considered in connection with the despatch from Mr. Lockhart copy of which was enclosed in the letter from this office of the 22nd ultimo it appears to Mr. Chamberlain that it might be preferable to postpone the 1-ne of the Order in Council proposed in that letter, pending the receipt of a further 1. port from Mr. Lockhart. It seems unlikely that the British dollar will pass freely in the Dependency until a branch of the Hongkong and Shanghai Banking Corpora- fron was opened.
I am, &c.,
C. P. LUCAS.
131
agree with him in thinking it doubtful how far the junk coast-customs described in paragraph 37 of the report can properly be levied, and I would suggest for your consideration that it might be better to retain the actual tax, but to change the basis of taxation, making it a tax on shipping generally, or on tonnage. "Your experience of Hong Kong is suflicient to satisfy you that both the wine and the opium “monopolies” can he justified by existing precedent, even in the case of a
free port."
"
8. I have submitted to the Lords Commissioners of the Treasury the observation made in paragraph 44 of the report, as to the inconvenience of the present financial year; and their Lordships state in reply that they think it proper, in view of the Chineso custom referred to in that paragraph, that the financial year should run from 1st January, and that there appears to be the less objection to this arrangement in that the financial requirements of the leased territories appear simple and able to be foreseen with precision a longer time ahead than is usually possible. The change of year will take place from 1st January next, and therefore it will not le3 necessary to include in the Colonial Services Estimate for 1903-4 provision for more than the last nine months of 1903.
9. The view put forward by Mr. Hare in paragraph 55 of his report, in regard to the nationality of Chinese inhabitants of Wei-hai-wei is correct.
I have, &c.,
J. CHAMBERLAIN.
22816.
No, 124.
MR. CHAMBERLAIN to COMMISSIONER STEWART LOCKHART.
42982
No. 125.
(No. 35.)
[Answered by No. 150.]
SIR.
Downing Street, October 15, 1902. I HAVE the honour to acknowledge the receipt of (now Lieutenant-Colonel) Cowan's despatch, No. 14, of the 1st of May last,§ forwarding a report on the Dependency of Wei-hai-wei, prepared by MF. G. T. Hare, late Acting Assistant Commissioner.
2. I have read this very complete and able report with much interest; but I have deferred addressing you on the subject until various points raised therein had heen referred to and considered by other public departments which they concern. In the meantime Appendices 1. and IV. have been printed and laid before Parliament,|| with the exception of the concluding part of the former, which recites the Convention for the lease of Wei-hai-wei, that Convention having already been published.
3. As regards the proposal that the post of Assistant Commissioner should be retained, and that of Secretary and Financial Assistant abolished, I hope shortly to address you in another despatch, in connection with your own despatch, No. 32, at the 16th June, which is at present under the consideration of the Lords Commissioners of the Treasury,
4. Mr. Hare argues in paragraph 20 of his report against the establishment of a Land Court and the commencement of a cadastral survey; and, on the assumption that you agree, I am prepared to acquiesce in the postponement of these measures, for the present at any rate. I also agree that there is no need at present to appoint a judge.
j). I note from paragraph 33 of the report that the Chinese prostitutes living at Port Edward are charged a small fee for police protection and control. This is contrary to the policy laid down in the case of other colonies and dependencies, and it should be discontinued immediately, if this has not already been done.
6. After consulting the Board of Trade, I approve the proposal that the Junkmen of Wei-hai-wei should be permitted to fly a Chinese pennant, with the words "issued by the British authorities" stamped upon it.
7. You are aware that Mr. Hare is not, strictly speaking, correct in asserting that Wei-hai-wei is a “ free port,” according to the generally necepted meaning of the term. The Government of the Dependency can collect any duties it pleases, including Customs duties on sea-borne goods; but if any duties of the latter description are collected, they must be handed over to the Chinese authorities. I
* No. 117. € No. 96.
* 1. F. uansmitting a copy of No. 120, + Nos, 121 and 122.
Printed as Colonisid Report Mises Batwolis. No, 20,
• No. 106.
SIR,
TREASURY to COLONIAL OFFICE.
(Received October 17, 1902.)
Treasury Chambers, October 16, 1902.
Lords
I AM directed by the Lords Commissioners of His Majesty's Treasury to acknowledge the receipt of Mr. Lucas's letter of the 9th instant (40865/02),* further respecting the proposed establishment of a branch bank at Wei-hai-Wei by the Hong- kong and Shanghai Banking Corporation.
my In reply I am to request you to inform Mr. Secretary Chamberlain that agree that unless such a branch bank is established it is not desirable to take any further steps at present to make the British dollar legal tender at Wei-hai-Wei.
The drafting of the proposed Order in Council will accordingly not be proceeded with until they have been informed by your Department of the decision at which the bank has arrived.
42987
No. 126.
I am, &c.,
E. W. HAMILTON.
COMMISSIONER LOCKHART to MR. CHAMBERLAIN. (Received October 17, 1902.)
(Confidential.)
Government House, Port Edward, Wei-hai-wei,
September 1, 1902. SIR,
WITH reference to your despatch, marked confidential, of the 12th March last, f regarding the walled city of Wei-hai-wei, I have the honour to report that since my arrival here the petty civil magistrate, who is resident in that city, has invariably proved himself ready to assist this Government to the best of his power, and as he is in receipt of $40 a month, paid from the funds of this dependency, there is every pro- bability that he will continue to co-operate in a satisfactory manner.
2. Under these circumstances I do not advise that any change be made in exist- ing arrangements so long as they work as smoothly as they do at present.
I have, &c.,
J. H. STEWART LOCKHART,
• No. 124.
16 11
↑ No. 87.
Commissioner.
R 2
PUBLIC RECORD OFFICE
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