CO882-(6-8) — Page 1

།། ་། ། །

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

6

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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was to be used bodily for the Canton-Kowloon Final Agreement; there would, of course, be modifications necessary to suit the different conditions. I pressed once more for the issue of specific instructions to the Viceroy, and His Highness said that a telegram would be sent asking the Viceroy to discuss the matter in an amicable spirit with the Corporation. Not considering this sufficient I wished to know more explicitly what the instructions in the telegram would be, and after further discussion His Highness, as a private and personal concession to myself, agreed to let me see a copy of the telegram sent to the Viceroy, in order that I might be in a position to inform His Majesty's Government exactly of the terms of the instructions conveyed in it.

Tang ta jen, who is now the Prince's chief working lieutenant at the Wai Wu Pu, left for Tientsin on urgent business shortly after my interview, and it was not till February 23rd, after his return, that the promised copy, of which a translation is enclosed (enclosure No. 4), was shown to me. I have no reason to find fault with the wording of this telegram which is more direct than I expected, and ought to help to abate the obstinacy of the Viceroy.

I have, &c.,

The Right Honourable

Sir Edward Grey, Bart.,

&c.,

&c.,

&c.

(1)

YOUR HIGHNESS,

Sir ERNEST SATOW to PRINCE CHING.

ERNEST SATow.

Peking, January 12, 1906. ON December 27th I had the honour to inform Your Highness that from telegrams received from Hong Kong and Canton, I learnt that the officials appointed by the Viceroy of Canton to negotiate with the representative of the British and Chinese Corporation in regard to the Canton-Kowloon Railway had met Mr. Ross twice, but had merely said that the Viceroy desired to cancel the Preliminary Agree- ment of March 28th, 1899. I said that Your Highness would recognise that this was not a proper mode of dealing with solemn contracts to which the Chinese Govern- ment was a party, and requested that the Viceroy should be moved to issue such instructions at once to his delegates as would ensure that the negotiations were conducted in accordance with the ordinary rules of international business.

I am now in receipt of a despatch from His Majesty's Consul-General, enclosing a copy of a communication which he had received on December 20th from the Viceroy of Canton on this subject. In this His Excellency pointed out that according to Clause 5 of the Preliminary Agreement the Director-General of Railways would "in case there should arise local difficulties, consult with the Viceroy of Canton to make the necessary arrangements," and argued from this that the arrangements for the construction of the line depended on local conditions. He further said that the situation had changed in the interval since the conclusion of the Preliminary Agree- ment, and that any inclination to compromise would involve both sides in difficulties; and requested that the question of British firms constructing the Chinese section should be dropped.

I must observe, in the first place, that the Chinese and English of the above quotation from Clause 5 of the Preliminary Agreement do not correspond, and as both texts are signed by the Director-General of Railways, both must be appealed to in case of dispute. Mr. Ross, the agent of the British and Chinese Corporation, who is now negotiating in Canton, is the person who drafted this Clause in 1899 at Shanghai, and he explained to the Viceroy's delegates that the local difficulties contemplated were interference with survey parties, feng shui prejudices, troubles over graves, &c., for all of which the Director-General said that the Viceroy of Canton would if necessary make arrangements.

It is evident, therefore, that in his communication of December 20th, to Mr. Scott the Viceroy merely proposed to abrogate the preliminary agreement on the ground that the situation has changed since 1899. That such a proposition should be seriously put forward by His Excellency after all the telegrams and correspond- ence which have passed on the subject is amazing. It is enough to remark that if the abrogation of the Preliminary Agreement of March 28th, 1899, could be so

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justified, there would be nothing to prevent the Chinese Government from repudi- ating the foreign loans or abrogating all the foreign treaties on the ground that the conditions had altered in the intervals since they were concluded.

I have instructed His Majesty's Consul-General at Canton to inform the Viceroy that his method of treating a solemn contract is wholly inadmissible, and that if it is persisted in I shall be forced to recommend His Majesty's Government to take serious notice of it. Mr. Scott was also directed to state that the Governor of Hong Kong complained of His Excellency's unfriendly attitude; that it was a matter of notoriety that his treatment of political agitations directed against foreigners was at least sympathetic; that in this matter of the Canton-Kowloon Railway there was scarcely a doubt that he encouraged, and, perhaps, led the local agitation which was only part of the general antagonism throughout China against foreign enter- prises; that he could not be too strongly warned that such a course was highly dangerous; and that it was his duty in China's interest to check such movements and not to encourage them. I further requested Mr. Scott to make His Excellency thoroughly understand that the hostile and unreasonable attitude of Chinese autho- rities like himself towards British enterprises had already excited considerable attention in Great Britain.

On January 9th I had a conversation with His Excellency Tang Shao-yi on this matter, and yesterday I sent him Chinese versions of the draft Final Agreement with the British and Chinese Corporation, and proposed Working Agreement with the Hong Kong Government to be followed by the English texts in a few days. The Viceroy of Canton is already in possession of these documents. I have the honour to request that definite instructions may be sent to His Excellency by the Chinese Government to order his delegates to discuss their contents with Mr. Ross forthwith.

=

(General. No. 7.)

(2)

Consul-General SCOTT to Sir E. SATow.

SIR,

His Majesty's Consulate-General, Canton, January 31, 1906. I BEG to enclose copies of further correspondence with the Viceroy regarding the Canton-Kowloon Railway. I duly communicated to him the substance of

your telegram, No. 37, of the 25th December last, complaining of the Viceroy's hostile attitude, and urging him to check and not to encourage political movements. In reply, the Viceroy contented himself with a denial of his anti-foreign attitude.

On the 30th instant, I again addressed a note* to the Viceroy at the instance of His Excellency the Governor of Hong Kong, refuting the Viceroy's arguments, firstly, that the Agreement was merely a preliminary draft, and not a regularly constituted contract and secondly, that he was free to annul the Agreement under the last clause, which provides for certain necessary arrangements (or amendments) to meet local difficulties.

I pointed out that the Agreement in question had been duly accepted by the Tsung-li Yamen, and had also received Imperial sanction by edict. I informed the Viceroy that under these circumstances his contentions could not be admitted.

As regards the intention of the Viceroy to have the Railway built by China and with Chinese money, all prospects of success on his part under such an arrange- ment are now impossible. In his endeavours to raise money for this and other schemes, he has permanently alienated by his harshness and exactions the sympathy and co-operation of the gentry and merchants.

There is at present a strong agitation amongst the people to have him removed from the post of Governor-General of the Liang Kuang Provinces: but Viceroy Tsen's influence with the Empress-Dowager is so powerful, that there is but little hope of any success crowning their efforts.

I have, &c..

Sir Ernest Satow, G.C.M.G..

&c.,

&c.,

18387

&c.,

His Majesty's Minister Plenipotentiary,

Peking.

JAMES SCOTT,

Consul-General.

Enclosure 3 in No. 238.

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