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PUBLIC

RECORD OFFICE

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No. 72.

ACTING COMMISSIONER COWAN to MR. CHAMBERLAIN.

(No. 25.) SIR,

(Received January 22, 1902.)

Wei-hai-wei, December 16, 1901. WITH reference to your despatch, No. 30, dated 11th October,* upon the sub- ject of the ownership of Stone Quarries, I have the honour to state, for your informa- tion, that in Wei-hai-wei, as in the rest of China, the word "land" includes mines stones, quarries, and other minerals, and that the mineral rights, including stone quarried on such land, belong by prescription and custom to the landlord.

2. It is, however, the custom of the Chinese Government in erecting public build- ings to make special cheap terms with landowners of stone quarries for the supply of building stone, and it would be, no doubt, feasible for the Commissioner to do the same with the owners of quarries on the mainland on behalf of the Admiralty.

3. It would appear, however, that the best granite building stone quarries are situated in localities on the coast outside the leased area, though within our sphere of influence. For ordinary purposes there is, however, sufficient building stone to be found on the Island of Liu-kung, which, being the joint property of the War Office and Admiralty, can be quarried for stone at will. On the mainland too, the ruins of the old Chinese forts, now belonging to the War Office, afford a supply of excellent granite stone already cut and squared for building purposes, and there would, personally, be no objection to the Admiralty making use of this for the works contemplated.

I have, &c.,

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J. H. COWAN, Major, Royal Engineers,

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1. That no garrison is now required for defence purposes on the Island, the Admiralty having decided not to retain there a large amount of stores.

2. That the responsibility for the maintenance of order both in the Island and on the mainland should devolve on the Colonial Office.

3. That pending the organization of a local force by the Colonial Office for the maintenance of order, the War Office should keep at Wei-hai-wei for the next 12 months a force of not less strength than 300 officers and men, but as soon as the above organization is completed, no military garrison will be needed at Wei-hai-wei.

4. That under these circumstances it would appear that no land and building? on either island or mainland will in future be required by the War Office, and that all such land and buildings at present in War Office possession might be transferred to the Colonial Office; similarly all land and buildings, the property of the Admiralty, and not actually required, or likely to be required in the near future, by the Admiralty, might be handed over to the Colonial Office.

W. G. NICHOLSON, Director-General Military Intelligence. C. P. LUCAS. R. M. CUSTANCE.

Note.-Admiral Custance has since asked me to bear in mind that Admiralty will require to keep certain land owned by or jointly with the War Office for, e.g., a recreation ground, and rifle range. I have said that this will, of course, be agreed to.

January 23.

Commissioner.

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C.P.L.

No. 73.

No. 74.

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Reference :-

C.O. 882

COPYRIGHT PHOTOGRAPH—NOT TO

BE

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE REPRODUCED PHOTOGRAPHIC-

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(Confidential.)

ADMIRALTY to COLONIAL OFFICE,

(Received January 22, 1902.)

SIR,

Admiralty, January 22, 1902. I AM commanded by my Lords Commissioners of the Admiralty to transmit herewith, for the information of the Secretary of State, copy of the Report of the Con- ference which was held on the 20th instant, between representatives of the War Office, Colonial Office and Admiralty to discuss the future arrangements required for the maintenance of order at Wei-hai-wei; and I am to state that their Lordships are pre- pared to accept this Report.

A similar letter has been sent to the War Office.

I am, &c.,

C. I. THOMAS,

Pro Secretary.

Enclosure in No. 73. REPORT of Conference on Wei-hai-wei, held by direction of the Secretary of State for War, the Secretary of State for the Colonies, and the Lords Commissioners of the Admiralty, at the Admiralty on 20th January, 1902, to consider and report upon the future garrison of Wei-hai-wei, and otuer questions connected there- with.

PRESENT:

Lieutenant-General Sir William Nicholson, K.C.B., (Director-General of

Military Intelligence and Mobilization).

Rear Admiral R. M. Custance, C.M.G., (Director of Naval Intelligence). Mr. C. P. Lucas, C.B., (Assistant Under Secretary of State for the

Colonies).

The Conference having carefully considered the question from a Naval, Military, and Colonial Office point of view, submit the following conclusions:

• No. 59.

ACTING COMMISSIONER COWAN to MR. CHAMBERLAIN.

(Received January 28, 1902.)

(No. 27.)

SIR,

Wei-hai-wei, December 20, 1901. I HAVE the honour to acknowledge the receipt of your despatch, No. 29, of the 3rd October,* on the subject of the proposal to make the British dollar legal tender at Wei-hai-wei.

2. In reply I desire to state that I find, on enquiry, that no definite arrangements have yet been made by Major-General Dorward with the Governor of Shantung as to receiving the British dollar on a par with the old Mexican in the walled town of Wei-hai-wei, and that no attempt has yet been made to induce the Customs officials and representatives of the foreign banks in Chefoo to accept the coins as of equal value in cash.

3. Until this is done it will be impossible to introduce the British dollar here successfully, as no one except European Government servants will accept it as of equal value with the old Mexican, the British dollar is not recognised as such by China, within the walled town of Wei-hai-wei, and by Chinese and foreign merchants, bankers, Chinese Customs and other Government officers outside the territory.

I am convinced that unless the Chinese and foreign community of Chefoo accept the British dollar es equal to the Mexican, the introduction of the former will be a failure.

4. It would, therefore, seem well that attempts should be made to obtain a promise of recognition and assistance from the Chinese Government and foreign banks at Chefoo, before bringing this enactment into operation.

5. If it be found impossible to obtain such assistance and recognition outside the territory of the dependency and in the walled town of Wei-hai-wel, it would appear

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• No. 56.

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