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PUBLIC RECORD OFFICE

Reference :-

TEC.O. 882

6

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE COPYRIGHT PHOTOGRAPH-NOT TO BE REPRODUCED PHOTOGRAPHIC-|

*

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Works:-

Quarters Commissioner and Orderlies

$11,000

Quarters for Secretary

4,000

Purchase and alteration of three Chinese houses Gaol

2,000

1,500

Contingencies and repairs ...

1,500

20,000

Furniture for quarters, offices, gaol, &c.

3,500

23,500

$36,000 6,000

42,000

Establishments (recurrent)

$20,000

Works and roads (non-recurrent)

65,500

$85,500

Probable revenue

20,000

Roads:-----

Coast Road

Improving mule tracks

Deficiency

$65,500 or £6,500

37. This reduced estimate for recurrent charges amounts exactly to the revenue which may be anticipated in fair years where there is neither excessive drought nor flood. An advance must be made by the Imperial Treasury to meet the cost of those works and roads, which, as I have explained, are necessities. Even so, I think that

if the island and mainland can be administered in future on the lines and with the establishments I have suggested, at a cost not exceeding the revenues received, there will be some saving to the Imperial Treasury, and I am sure there will be a gain in efficiency. So far, it will be remembered, no attempt, has been made to administer the mainland territory. It must not, however, be forgotten that in my estimates I have reduced the establishment for island and mainland to the minimum, and as the burden of work and responsibility will, in each case, fall practically on one man, every- thing depends on his selection. I could have put the land tax at a higher figure, because Chinese have estimated it at from 20,000 dollars to 25,000 dollars, but as neither the British officers in Weihaiwei, nor the Consul in Chifu, had been able to ascertain the sum hitherto raised, I was obliged to go on the result of my own in- quiries, and I have preferred to take a safe rather than a sanguine estimate. I have tried to give reliable information about this land tax, because various statements are made about it. Even Mr. Jamieson, in his report on the revenue and expenditure of the Chinese Empire, puts the tax at 200 cash a "man," and on that basis estimates what ought to be the land revenue of the Chinese Empire. I can say positively that

in the Shantung l'rovince the rate is one-tenth of that, or 20 cash per mau, a tax which the Chinese collectors have practically doubled by insisting upon payment in 'cash" at a fictitious rate of exchange for silver. The people cannot afford to pay

more.

38. There remain a few points to which reference should be made.

I was asked (in paragraph 5 of the Secretary of State's despatch, confidential, of 16th March last, addressed to the Officer Administering the Government of the Straits Settlements) to direct my attention to the best method of formally taking over the administration of the Weihaiwei territory. I considered this question, and prepared a brief memorandum on the subject; but when I arrived in Weihaiwei I found that, owing to certain special circumstances, the administration was then practically being taken over, and as the Governor of Shantung has recognised the boundary already marked out, no further steps may be necessary, I enclose the memorandum, how- ever, in case it may still be useful in Weihaiwei or elsewhere.

39. In paragraph 9 of the same despatch. I was asked whether the definition of the boundary of the leased territory had led to any difficulties of demarcation or administration which would require carly adjustment. I have already referred to this question, and suggested how the difficulty might be met, but a difficulty of

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another kind remains. When the British Commissioners met the Chinese Commis- sioners for a definition of the boundary, the British officers recognised that it would be practically impossible to lay down on the land the line which nad been drawn on paper and which represented the exact boundary according to the terms of the Convention. The British officers expected that their Chinese colleagues would be prepared to give and take, and that a workable line could be easily arrived at. The Chinese declined any such compromise, and the line goes through three villages, one large and two small. Some rectification of the frontier must be made, and after consulting the Commissioner I suggest that the large village be included in the British territory and the two small ones left to China. I believe the Chinese will gladly accept that arrangement, but if they hesitate they should be told that the matter is not open to discussion, and British officers can then define and proclaim the boundary.

It

40. The exact facts as regards the attack on the British Boundary Commis- sioners are probably known in the Colonial Office, but, if not, I can supply them. is sufficient to say here that the attack was absolutely unprovoked and inexcusable, that it very nearly resulted in the death of two officers of the Chinese Regiment, and that the conduct of the Chinese Commissioners, both before and after the occurrence, was so suspicious that it is difficult to suppose they were not privy to the assault, if not the actual instigators of it. So far, no reparation has been exacted for this amazing attempt of the Chinese to retire from a formal engagement, and treat the action of their own Government with contempt. It would, however, be a serious blunder to let the matter drop, as that would be an encouragement to a repetition of such occurrences on the border of this territory and elsewhere in China. Major l'enrose, who was seriously injured, ought to be indemnified, and the Chinese Govern. ment (which can settle with its own people) ought to be made to pay such a price (I do not mean a money price) as Her Majesty's Government thinks necessary to exact, By the Convention for the cession of this territory, the city of Weihaiwei was left under the jurisdiction of the Chinese. That is an impossible position, and the mis- take should be remedied at once. It must be evident to anyone that this imperium in imperio when the imperium is a squalid Chinese town, the refuge of all bad characters, the centre of sedition, the focus from which petty Chinese officials can send out emissaries to disturb the minds of those who will now be British subjects, is a state of affairs which ought not to be allowed to continue. I mention this be- cause, though the place is worthless, it must, on account of its position, be subject to the same Government as the country which surrounds it on all sides. I do not suggest that the Chinese be requested to forego the right of exercising jurisdiction in Weihaiwei as compensation for the attack on the British Boundary Commissioners, because I think this compensation would be entirely inadequate; but, however it is done, this walled village, which contains about 1,800 inhabitants, must be under the same jurisdiction as the territory which surrounds it. The proximity of such a place has a very bad effect on the men of the Chinese Regiment, and the officers complain of the harm it does to them. If the exclusion of this place was made in 1808 to save the Chinese "face," no such sentimental consideration need be regarded in 1900. 41. It appears by the Convention that the British Government is, under certain circumstances, to have certain rights within the territory east of the meridian 121° 40'. That is a large territory, the inhabitants of which are said to number about 900,000 people. It contains one excellent harbour (Shi-tau), several considerable towns, and better mining and trading prospects than can be found in the small strip of country, the boundaries of which have recently been defined. This might be considered a favourable opportunity to extend the British boundary to the limits of this larger sphere of influence, but I doubt if the place is worth it. Under British Government it is tolerably certain that so large a population (even if it turned out to be only 500,000 people) in that wider extent of territory, would supply a revenue sufficient to cover the cost of administration. But even so, the country and the people are wretchedly poor, and it is doubtful whether there is anything to be gained by entering on large responsibilities in the north of Shantung, unless hs a means to some more desirable end. If I seem to insist unduly on the poverty of the people of this particular province, the facts of the case may perhaps be better realised by this extract from the lately published report of the Commissioner of Customs at Chifu. Mr. Carroll writes: "The distress has been so great that parents have had to sell their children of all ages at unprecedentedly low figures in order to procure food.” You see it is not that they have had to sell their children, but owing to the quantity in the market the price for children has been so ridiculously small.

I attach a recent Gerumu map* of the Province of Shantung, which is interesting

Not reproduced.

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