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PUBLIC RECORD OFFICE

Reference :-

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TC.O. 882

6 PUBLIC RECORD OFFICE, LONDON

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

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Treaty Powers which may imperil the rights insured to the United States by its

treaties with China.

It is the sincere desire of my Government that the interests of its citizens may not be prejudiced through exclusive treatment by any of the controlling Powers within their respective "spheres of interest" in China, and it hopes to retain there an open inarket for all the world's commerce, remove dangerous sources of international irritation, and thereby hasten united action of the Powers at Peking to promote administrative reforms, so greatly needed for strengthening the Imperial Government and maintaining the integrity of China, in which it believes the whole Western world is alike concerned. It believes that such a result may be greatly aided and advanced by declarations by the various Powers claiming spheres of interest in China as to their intentions in regard to the treatment of foreign trade and commerce therein, and that the present is a very favourable moment for informing Her Majesty's Government of the desire of the United States to have it make on its own part, and to lend its powerful support, in the effort to obtain from each of the various Powers claiming "spheres of interest in China a declaration substantially to the following

effect :-

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1. That it will in nowise interfere with any Treaty port or any vested interest within so-called "sphere of interest or leased territory it may have in China.

any

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2. That the Chinese Treaty Tariff of the time being shall apply to all merchandise, landed or shipped to all such ports as are within such "sphere of interest" (unless they be "free ports") no matter to what nationality it may belong, and that duties so leviable shall be collected by the Chinese Government.

3. That it will levy no higher harbour dues on vessels of another nationality frequenting any port in such "sphere" than shall be levied on vessels of its own nationality, and no higher railroad charges over lines built, controlled, or operated, within its "sphere on merchandise belonging to citizens or subjects of other nationalities transported through such "spheres" than shall be levied on similar merchandise belonging to its own nationals, transported over equal distances.

"

The President has strong reason to believe that the Governments of both Russia and Germany will co-operate in such an understanding as is here proposed. The recent Ukase of His Majesty the Emperor of Russia, declaring the port of Talienwan open to the merchant ships of all nations, during the whole term of the lease under which it is to be held by Russia, removes all uncertainty as to the liberal and conciliatory policy of that Power, and justifies the expectation that His Majesty will accede to the similar request of the United States, now being represented to him, and make the desired declaration.

The recent action of Germany in declaring the port of Kiao-Chao a "free_port," and the aid which its Government has given China, in establishing there a Chinese Custom-house, coupled with oral assurances given the United States by Germany, that the interests of the United States and its citizens within its "sphere" would in nowise be affected by its occupation of this portion of the Province of Shantung, encourage the belief that little opposition is to be anticipated to the President's request for a similar declaration from that Power.

It is needless also to add that Japan, the Power next most largely interested in the trade of China, must be in entire sympathy with the views here expressed, and that its interests will be largely served by the proposed arrangement, and the declara- tions of its statesmen within the last year are so entirely in line with it that the co-operation of that Power is confidently relied upon.

It is therefore with the greatest pleasure that I present this matter to Your Lordship's attention, and urge its prompt consideration by Her Majesty's Government, believing that the action now requested is in entire harmony with its consistent theory and purpose, and that it will greatly redound to the benefit and advantage of all commercial nations alike. The prompt and sympathetic co-operation of Her Majesty's Government with the United States in this important matter will be very potent in promoting its adoption by all the Powers concerned.

I have, &c.,

JOSEPH H. CHOATE.

28681.

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No. 9.

THE MARQUESS OF SALISBURY to MR. CHOATE.

YOUR EXCELLEncy,

[Answered by No. 10.]

Foreign Office, October 14, 1899. WITH reference to my note of the 29th ultimo, I have the honour to state that I have carefully considered, in communication with my colleagues, the proposal contained in Your Excellency's note of the 22nd September,† that a declaration should be made by foreign Powers claiming "spheres of interest" in China, as to their intentions in regard to the treatment of foreign trade and interest therein.

By Article 1 of the proposed Declaration, such Powers would undertake not to

interfere in any way with iny Treaty port or any vested interest within any so-called

sphere of interest" or leased territory which they may have in China.

"

I have the honour to request Your Excellency to explain to the United States' Government that the territory leased by this country at Hong Kong has been declared to be an integral part of the Colony, and that, as far as possible, the laws of the Colony are already applied to it, and that it therefore stands on a wholly different footing from a "sphere of interest." It is practically an extension, conditioned by a term of years, of an existing Colony, and serious inconveniences would obviously arise if a Customs line were drawn across it, and its fiscal administration were to be conducted on rules differing entirely from those of the actual British territory on which it abuts.

With regard to Wei-hui Wei, which is also leased by Great Britain from China, there is no trade there at present, and no question has consequently arisen as to what customs duties, if any, should be levied.

Her Majesty's Government would be willing, in the event of customs duties being at any time imposed on goods reaching Wei-hai Wei by sea, that they should be collected on behalf of China at the Chinese Treaty rate, and the proceeds remitted to the Chinese Government.

In view of what is stated above, Her Majesty's Government consider that all mention of leased territory should be omitted from the proposed Declaration, which should be confined to spheres of interest.

34388.

MY LORD,

No. 10.

I have, &c.,

SALISBURY.

MR. CHOATE to the MARQUESS OF SALISBURY. (Received November 16, 1899.)

[Answered by No. 11.]

American Embassy, London, November 15, 1899. WITH reference to your note of the 14th ultimo,‡ in regard to the Declaration which my Government desires to have made by foreign Powers having leased territory or spheres of interest in China, I have the honour to inform Your Lordship that I have given careful thought to the considerations contained therein, and have submitted them to the Secretary of State.

I recognise the validity and propriety of your objection to including within such a Declaration the territory known as the Hong Kong Extension, which appears to have been practically incorporated with, and to be governed as a part of, the Crown Colony of Hong Kong; and I fully appreciate what a serious inconvenience would arise from different customa laws and fiscal regulations covering different parts of what is sub- stantially one Colony.

With regard to Your Lordship's suggestion that, in view of this difficulty as to the Hong Kong Extension, Her Majesty's Government consider that all mention of leased

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↑ No. 8.

* No. 9.

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