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18

a trade. The duty on any goods re-exported across the land frontier might be handed over to the Chinese Government. With this arrangement there would be no temptation to smuggling, and the territory would derive a revenue from customs duties which would not be onerous, as there would be no "squeeze."

15. Putting the customs duties aside, except that on wine and spirits, it may be assumed that a revenue of £6,000 a year is derivable from the territories."

This should be sufficient to pay for the staff at first required, with a small balance over for necessary works.

The sale of mining rights, increased trade, and sale of reclaimed land, ought eventually to provide some more funds.

16. The most immediate requirement is an Order in Council proclaiming the territory as British, and appointing the Governor.

The next is to provide some money for immediate requirements. The only way appears to be to let the territory borrow a small amount, say £2,000 or £3,000, to be repaid when it gets a revenue.

Then the process of raising a revenue should be considered on the spot, with the aid of any competent adviser who may be procurable.

It will probably be necessary to appoint the judge, the secretary and treasurer and the colonial engineer at an early date The two latter offices might be filled up locally from among the officers now there, thus saving expense for a time as travelling expenses, and quarters would not be required.

The Cantonment Magistrate for the island should be appointed at once, as asked for by the Commissioner.

The further details of organization must be worked out locally. Owing to the great distance from England considerable authority must be given to the Governor, subject to his acts being confirmed by the Home Government.

19

Sir C. MACDONALD to the TSUNG-LI YAMEN.

MM. LES MINISTRES,

Peking, December 18, 1899. I HAVE the honour to inform your Highness and your Excellencies that Her Majesty's Government have now appointed Colonel Dorward, R.E., to administer the leased territory of Wei-hai Wei,

Colonel Dorward will have full exercise of the powers of jurisdiction ceded by the Chinese Government in the convention signed on the 1st July, 1898. At his request I' have deputed a Consular officer conversant with the Chinese language and customs to act as his interpreter and assistant.

With regard to international business between the leased territory of Wei-hai Wei and the Chinese Province of Shantung, Colonel Dorward proposes to correspond direct with the Governor of Shantung.

I approve the suggestion; the course proposed will save needless correspondence through this Legation and the Tsung-li Yamên. It will only be necessary in cases in which the Commissioner and the Governor of Shantung cannot come to an agreement by direct correspondence to refer the matter to Peking.

I would, therefore, ask your Highness and your Excellencies to direct the Governor

I avail, &c.,

of Shantung to adopt the course proposed by Colonel Dorward.

8931.

No. 20.

CLAUDE M. MACDONALD.

PUBLIC RECORD OFFICE

Reference

TILLIC.O. 882

9th March, 1900.

8727.

SIR,

No. 19.

FOREIGN OFFICE to COLONIAL OFFICE

(Received March 19, 1900.)

J. F. LEWIS,

Colonel.

Foreign Office, March 17, 1900.

I AM directed by the Secretary of State for Foreign Affairs to transmit to you, to be laid before the Secretary of State for the Colonies, the accompanying copies of a Modonald, despatch, as marked in the margin, respecting the question of direct cominunication

between the British and Chinese authorities of Wei-hai-Wei and Shantung respectively.

Air C.

No. 350, Dec. 22,

(No. 350.) Mr LORD,

Enclosure in No. 19.

I am, &c.,

FRANCIS BERTIE.

Sir C. MACDONALD to the Marquess of SalisbuRY. (Received February 19, 1900.)

Peking, December 22, 1899. WITH reference to the question alluded to in the despatch from this Legation, No. 294, of the 3rd October last, of direct communication between the British Com- missioner of Wei-hai Wei and the Governor of Shantung on matters arising in connection with the lease territory and the Province of Shantung, I have the honour to state that, in compliance with Colonel Dorward's request, I addressed to the Taung-li Yamen on the 18th December a note advocating this course.

I have the honour to inclose copy of this note. On the 21st instant I received the Yamên's reply, to the effect that they were writing to the Governor of Shantung in the sense desired.

I have, &c..

CLAUDE M. MACDONALD.

SIE,

WAR OFFICE to COLONIAL OFFICE.

(Received March 20, 1900.)

[Answered by No. 29.]

War Office, London, S.W., 17th March, 1900. WITH reference to your letter of the 7th ultimo and subsequent correspondence,

I am directed by the Secretary of State for War to forward to you a copy of a communi- cation which has been received from Colonel Dorward, submitting proposals for the civil administration of the leased territory of Wei-hai Wei.

I have, &c.,

G. FLEETWOOD WILSON.

SIB,

Enclosure in No. 20.

CIVIL ADMINISTRATION OF THE LEASED TERRITORY; SUBMITS PROPOSALS FOR.

Wei-hai Wei, 7th January, 1900.

I HAVE NOW the honour to submit my proposals for the civil administration of the British leased territory of Wei-hai Wei.

Mr. S. Barton, of Her Majesty's Consular Service in China, reported his arrival for duty here on the 14th ultimo, and has been appointed a District Officer and Magistrate to reside at Matcu on the mainland. His principal duty, in addition to magisterial work, will be the collection of the land and salt taxes.

He has been placed in charge of the whole territory with the exception of a strip of land about four miles long in the neighbourhood of the Chinese regiment, which will remain under the control of the officer commanding that regiment, assisted by his chief interpreter, Mr. Schaller; in addition to the magisterial work of the strip, the latter officers collect taxes on junks, timber, etc., and wharfage dues on the old Chinese lines.

It is not proposed to levy any taxes other than those which the inhabitants have been accustomed to pay to Chinese officials.

When the Chinese regiment of infantry and battery of artillery have been raised, Mr. Schaller's services will become more widely available for civil government work.

It is not proposed to establish any civil police force on the mainland, as it is considered that order in the territory can be more efficiently maintained through the Chinese regiment.

• No. 13.

9

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE COPYRIGHT PHOTOGRAPH—NOT TO BE REPRODUCED PHOTOGRAPHIC-Page 121

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It is hoped that the negotiations now in progress with the Governor of Shantung Province will enable the demarcation of the boundary of the territory to be completed in time for the collection of the spring instalment of the land tax.

As mentioned in my letter No. 81, of November 14th last, forwarding Captain Lee's 286 square report on the Reconnaisance Survey, the area of the leased territory is about two hundred and eighty six square miles, of which two hundred square miles are believed to be cultivated.

miles.

miles.

200 square

250 140,000

£2,450.

£3,000.

£100.

84.

The population, which is contained in about two hundred and fifty villages, amounts approximately to one hundred and forty thousand.

If the area under cultivation has been correctly calculated, the land tax will amount to two thousand four hundred and fifty pounds per annum ; but it is not probable that the whole of this amount can be collected for some years, as no assistance as to the correct amounts payable by villages can be looked for from the Chinese authorities, and it will take a long time to collect accurate information on the subject.

The maximum revenue from the leased territory under all heads will hardly reach three thousand pounds per annum, exclusive of what may be derived from mining.

As regards the cost of the Establishment, I do not know whether the Foreign Office will continue to pay the actual Consular salary of Mr. Barton, but His Excellency the British Minister at Peking is of opinion that an extra allowance of one hundred pounds per annum, payable by the Administration of the territory, should be attached to the post which Mr. Barton now fills. I concur in that opinion, and consider that quarters and fuel should also be provided, together with a forage allowance for two ponies, and a travelling allowance of four dollars a day when actually absent from headquarters on duty.

Mr. Barton will require an establishment of one Chinese writer and four official messengers, one of whom should be mounted.

The following table shows the approximate annual cost of the Commissioner's Civil Office Establishment and that of the District Officer :-

21

As regards the Engineering Establishment, I think the most satisfactory arrangement would be to pay the Commanding Royal Engineer and the Division Officer of Royal Engineers on the mainland a sum of, say, two hundred pounds per annum esch, to £200. include all allowances and cover all

expenses of every sort.

They would require two subordinates, and I think the best plan would be to send out two discharged non-commissioned officers of the Royal Engineers, capable of making plane table and compass surveys, to be paid at the rate of two hundred pounds per annum £200. each, with quarters, fuel and light on Class XV. scale; with forage allowance for one pony, and travelling allowance of two dollars diem.

per

There would be no objection to $2.

the men being married.

Each of them would require an establishment consisting of one native interpreter st forty dollars per mensem, and two native assistants at eight dollars per mensem.

The cost of the Engineering Establishment would then be as follows;-

Allowances to Commanding Royal Engineer and Division

Officer

Salaries of two overseers

Four native assistants at $8 per mensem

Two native interpreters at $40 per mensem Overseers' allowances :-

Travelling

Fuel and light Forage

Total

Per annum.

£

400

400

40

96

100

40

36

£1,112

$40.

$8.

Commissioner's Civil Office.

Per annum.

£

d.

European Interpreter

Fuel and light allowances (C1. XV.) Native interpreter at $40 per mensem Native writer at $40 per mensem Native messenger at $7 per mensem

Consular salary of a second assistant

Extra allowance

200 0 0

20 0

48 0 0

48 0 0

8 10 0

District Officer.

350

0.0

100 0 0

Fuel allowance (C1. X.)

Native writer at $40 per mensem

22 0 0

48 0 0

25 10 0

10 0 0

Three native messengers at $7 per mensem

One native messenger (mounted) at $8 per mensem...

Travelling Allowances.

District officer at $4 per diem, say $28 per mensem... Native writer at 50 cents. per diem, say $3 per mensem European interpreter at $2 per diem, say $10 per

men sem,

Forage Allowances.

36 0 0

4 0 0

12 0 0

440

36

18

18 0

පපුප

0

0

0 0

0

District officer, two ponies European interpreter, one pony Mounted messenger, one pony

Office Contingencies.

All offices (inclusive)

Total

..

100 0 0

£1,104 û

L

If this be approved, I would ask that the Deputy Adjutant-General, Royal Engineers,

be moved to select and send out the two overseers required.

As regards the Civil Administration work being done by Lieutenant-Colonel Bower and Mr. Schaller, I am of opinion that two hundred pounds, being one-third of Mr. £200. Schaller's salary, should be charged to the Civil Administration, and that one hundred £100. pounds per annum be granted to Lieutenant-Colonel Bower for the civil work done by him.

Allowing ten per cent for contingencies, it will be seen that the total annual cost of 10%. the Civil Administration proposed will amount to nearly two thousand eight hundred £2,800. pounds, being two hundred pounds less than the estimated maximum revenue.

The engineering work required will consist of river protective works, mule tracks, and small irrigation works for the benefit of the territory. Work is very much wanted among the people, and it is important to show them that something is being done for them put of the revenue.

For the first few years, at any rate, it is hoped that a grant-in-aid will be made by Her Majesty's Government towards the cost of that engineering' work,

It will also be necessary to build quarters and offices for the Civil Establishment, and that should be done in the present year.

The amount of revenue to be derived from mining and prospecting rights is unknown. Applications have been made to purchase the right of prospecting for coal over about thirty-two square miles of country, and applications to purchase land for gold, silver and tin mining have been made for areas aggregating about two square miles.

In the Leased Territory there are extensive indications of former mining operations, which seem to have ceased owing to water being reached or to the sides of the shafts falling in from want of shoring. When the harvests are gathered in, it is still the practice of the natives to cradle for gold in many of the streams.

The territory has been examined by many prospectors, and all of them to whom I have spoken seem to consider that the prospects of gold and silver mining are very favourable, while those of finding good coal are only moderate.

It is known that, in spite of regulations to the contrary, some land has already been purchased from the natives, but as a general rule the prospectors have been satisfied with

£200.

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