CO882-(4-5) — Page 658

700

PUBLIC RECORD OFFICE

Reference :---

C.O. 882

5 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

332

Your Lordship at the same time instructed me to intimate to the Chinese Government that, provided satisfaction were given to us in other matters, Her Majesty's Government might be disposed to forego payment of this sum either in whole or in part.

On the 24th ultimo I addressed a note to the Tsung-li Yamên embodying the first paragraph of your Lordship's instructions, and at the same time I asked for an interview, which was arranged for the 27th ultimo,

At this interview I asked the Ministers if they had received my note intimating that Her Majesty's Government required compensation for the Kowloon disturbances.

The Tsung-li Yamên replied that the note had been received, and that they were greatly surprised that Her Majesty's Government, after having obtained possession of the territory, should make a monetary demand in addition.

I replied that the demand was made on account of the opposition caused by the Chinese troops to our taking over the territory, and that I had informed them already, on two previous occasions, that your Lordship proposed making such a demand. I intimated that the conduct of the Canton Viceroy had been far from satisfactory during the whole of the negotiations, and it appeared to me that, in their own interest, much friction would be removed if His Excellency were allowed to retire into private life. He was old, I added, over 80, infirm, and supposed to be suffering from an acute disease.

To this the Ministers made no reply, but they declared it to be the duty of the British Government to protect their own territory; we had no right to claim compensation from China.

:

I reminded them, as I had so often done before, that the disturbances took place before Her Majesty's Government took possession of the territory. Their Excellencies tried to argue that a disturbance on Chinese territory did not affect the British Government. I pointed out that the Hong Kong Government were now in possession of a considerable area of land beyond the limit assigned by the Convention, and it dependerl largely on the manner in which the Chinese Government treated your Lordship's demands as to how we should deal with the territory in question.

One of the Ministers exclaimed that such a position was inconsistent with the friendly relations existing between the two countries.

I answered, that from the very commencement of the negotiations for taking over the territory it had been the earnest wish of Her Majesty's Government to arrange the matter amicably, as could be proved both by the visit of His Excellency the Governor of Hong Kong to the Canton Viceroy, and by the many interviews which I had held with their Excellencies, in all of which I had strenuously urged them to co-operate with Her Majesty's Government in this matter. Her Majesty's Government regretted exceedingly that the Canton Viceroy had not seen fit to co-operate with us, with the result that this claim for compensation had now to be made.

The Tsung-li Yamên replied that the Chinese Government could not accede to the demand, and they begged me not to argue on the matter any further.

They would prepare a reply to my note for communication to Her Majesty's Government.

I then added that I had a communication to make to them which had not been

included in my despatch, as it seemed preferable to me to make it verbally.

Your Lordship had instructed me to intimate that if the Chinese Government acceded to our demands in connection with the Northern Railway and other pending matters, Her Majesty's Government might be induced to modify this claim.

The territorial question, I again reminded them, was not yet settled.

The Tsung-li amên thereupon asked if on those terms the city of Kowloon would again be restored to them. I said that I had received no instructions on this particular point.

This interview with the Yamon confirmed me in the opinion which I had had the honour of conveying to your Lordship by telegraph two days previously, namely, that our occupation of territory outside the Kowloon Extension appeared to be regarded by the Peking authorities with indifference, and that beyond making their formal protest the Ministers had not, of their own accord, in any way alluded to the subject.

On the 27th ultimo I telegraphed the result of my interview to your Lordship, and on the 29th ultimo I had the honour to receive your Lordship's telegram informing me that Her Majesty's Government will not withdraw from Shamchun until there is evidence that the Chinese Government purpose observing their engagements in regard to the Northern Railway and other matters.

On the 1st instant I received a note from the Chinese Government in reply to the

383

one I addressed to them on the 24th ultimo, in which it is stated that it is utterly unreasonable that China should pay any compensation.

They refuse any responsibility for the disturbances, and assert that the extension was granted to Great Britain as an act of extraordinary friendship on the part of China.

A copy of my note to the Taung-li Yamên and of their Excellencies' reply is herewith inclosed.

I have, &c.,

H. O. BAX-IRONSIDE.

MR. BAX-IRONSIDE to the TSUNG-LI Yamen.

MM. LES MINISTRES,

On the 23rd ultimo I had the honour of addressing your Highness and your

Peking, June 26, 1899. Excellencies with regard to the Hong Kong Extension, and I reminded your Highness and your Excellencies that, at my interview on the 8th May, I warned the Ministers of the Yamên that some demand for compensation would assuredly be made by Her Majesty's Government on account of the opposition of the Chinese to the occupation of the leased territory by the Hong Kong authorities.

I have now received a telegram from Her Majesty's Government to the following effect:

"You should inform the Chinese Government that Her Majesty's Government require the payment of a sum of 150,000 dollars on account of the expenditure incurred in consequence of Chinese opposition to the occupation of the Kowloon Extension."

I have the honour to communicate this demand on the part of Her Majesty's Government to your Highness and your Excellencies, and to request you to take in mediate steps for the payment of the amount stated.

I avail, &c.,

SIR,

H. O. BAX-IRONSIDE.

The TSUNG-LI YAMÊN to MR. Bax-Ironside.

On the 26th June we received your despatch stating that you had received

July 1, 1899. instructions from Her Majesty's Government to demand from the Chinese Government the sum of 150,000 dollars on account of expenses incurred in consequence of Chinese opposition to the taking over of the Kowloon Extension territory,

[Despatch sent quoted at length.]

We have the honour to observe that the extension of Hong Kong by a tract of territory many times the size of Hong Kong, so as to furnish your honourable nation with space for expansion, was an act of extraordinary friendship on the part of China. The disturbances recently raised by the common people of Kowloon district was caused by British troops being sent to take up their quarters prior to the handing over of the territory. The people were naturally alarmed. The Governor-General of Canton sent troops to keep order, and handed over the district at the due date.

There was no opposition whatever.

It is utterly unreasonable that China should pay any compensation, and we have the honour to inform your Excellency accordingly, and to request you to transmit our views to Her Majesty's Government.

We avail, &c.,

18614.

(Confidential.)

SIR,

No. 239.

COLONIAL OFFICE to FOREIGN OFFICE. [Answered by No. 256.]

(Seal of YAMEN.)

Downing Street, September 13, 1899.

I AM directed by Mr. Secretary Chamberlain to enclose, for the consideration of the Marquess of Salisbury, a copy of a despatch" from the Governor of Hong Kong, asking

• No. 223.