CO885-6 — Page 202

PUBLIC RECORD OFFICE

Reference :-

TELEC.O. 882

זון ו ו

60

that it would be perhaps best to abandon the attempt to introduce the British dollar altogether, for these among other reasons:-If the rest of the province outside the territory, and the walled city of Wei-hai-wei decline to recognise the British dollar as of equal value to the old Mexican, the only means Government have of enforcing its recognition within the territory will be by paying salaries and charges in the British dollar, and in declining to receive rents and taxes in other coin than the British dollar. But the land and house taxes and other licences are chiefly paid in copper cash, and the Chinese Civil Service Staff and Chinese Regiment are all paid in Mexicans, and it would be necessary to compensate them for the loss on the British dollar at the expense of Government if they are paid in British dollars, for the value of the two coins will not tend to appreciate equally if the British dollar is not accepted outside. There is, moreover, a fair trade between Chefoo and Wei-hai-wei, and traders resident in the leased territory would lose on exchange outside the territory if the use of the British dollar was so rigidly enforced in the dependency as to drive out the Mexican, which can always he realised at a profit outside the territory. If no special measures are taken by Government to create preference for the British dollar over the Mexican, and if the British dollar is not accepted outside the territory, the only result of the proposed legislation will be that (1) local Chinese trade will be inconvenienced and exposed to a loss on exchange, and (2), that British soldiers and sailors will be paidat Wei-hai-wei in British dollars instead of Mexican, as at present, and that (3), any one who has any option left in the matter will take Mexicans in preference to British dollars.

6. It appears, therefore, that if all that is desired is to avoid payment of premium by His Majesty's Government on the purchase of old Mexicans for disbursement to His Majesty's forces in China, it will be unnecessary to legislate, as this result can be gained by an executive order from the War Office and Admiralty to the Chief Paymaster at Hong-Kong to pay the China Squadron and British troops at Wei-hai-wei in British dollars.

7. Under these circumstances I propose deferring any action until I have first ascertained if arrangements can be made for the British dollar and Mexican to be received at par in Chefoo, and the necessary steps in this direction will be taken at once, after which a further report will be submitted, and the question of subsidiary coinage he also dealt with.

5109

I have, &c.,

J. H. COWAN,

Major, Royal Engineers, Commissioner.

Gi

3. I am of opinion that it is useless, for a moment, to expect that the Governor of the Province will take upon himself the responsibility of abolishing Chinese Juris- diction in the walled town without the sanction of the Chinese Foreign Office, as no Provincial Authorities, however high, care to touch matters that are settled by Inter- national Convention.

4. If, however, the Governor of Shan-Tung were invited to instruct the Chefoo Tao Tai to consult with the Commissioner, and arrange locally between them some arrangement for suppressing the abuses complained of, it is possible that a compromise might be made in an amicable spirit, by which a small Chinese Magistrate should be placed in the City to administer Chinese Jurisdiction, subject to the advice and super- vision of the Commissioner as far as Military and Naval requirements, and the peace, order, and good government of the Territories, necessitate. If this suggestion is ap- proved, it would be advisable that the Commissioner be authorized to offer to pay some sum not exceeding $1,800 towards providing a salary for the proposed Chinese Magistrate. If the Chinese Magistrate receives from the British and Chinese jointly, salary amounting in all to about $2,400 per annum, he will be well paid, and have no need to depend, as now, upon illegal fees and other exactions.

5. Referring to paragraph 3, Colonial Office to Foreign Office, 27th September,* copy of which accompanied your despatch † under reply, it would be a mistake, in my opinion, to replace the present Chinese Sergeant by a Chinese Military Officer of higher rank, as that would only lead to an extension of the present abuses. On the contrary it would be better to arrange that no Military Officer be stationed in the walled City, which would then fall entirely under the control of the one Civil Magistrate, who would be in a position then to carry out the Commissioner's wishes in respect to the walled town, without interference from any other official.

6. If this proposal is approved, and an attempt made to settle the questions locally, and it fails, owing to obstruction on the part of the Shan-Tung officials, the Dependency will then have a still better case than now in demanding that the con- vention of Wei-hai-wei be amended by the abolition of Chinese Jurisdiction in the walled town, on the grounds that the continuance of the present state of affairs is impossible, and that the Provincial Authorities will not assist in remedying abuses and removing difficulties.

7. I have, therefore, the honour to request your sanction to approach the Governor of Shan-Tung in the way suggested above, and it would be well that the Commissioner should visit the Provincial capital of Chi-Nan Fu, to interview the Governor, if it is found that the matter cannot be arranged satisfactorily in writing.

I have, &c.,

J. H. COWAN, Major, Royal Engineers,

Acting Commissioner.

No. 75.

ACTING COMMISSIONER COWAN to MR. CHAMBERLAIN.

(Confidential.)

(Received February 5, 1902.)

[Answered by No. 87.]

SIR,

Wei-hai-wei, December 26, 1901. WITH reference to your despatch, confidential, dated 9th of October last,* upon the subject of the abolition of Chinese Jurisdiction in the walled town of Wei-hai-wei, I have the honour to report that Major-General Dorward discussed this question with Ilis Majesty's Minister, Sir E. Satow, on the occasion of his visit to this Dependency in November.

2. It would appear that His Majesty's Minister was loth to press this point on the Chinese Court in the present juncture of political affairs, and desired the Com- missioner to try to induce the Governor of Shan-Tung to abolish Chinese Jurisdiction in the walled town. Sir E. Satow will, no doubt, communicate his views direct on this subject, to the Secretary of State for Foreign Affairs for the information of the Colonial Office.

• No. 58.

2949

SIR,

No. 76.

COLONIAL OFFICE to WAR OFFICE.

[Answered by No. 78.]

Downing Street, February 8, 1902. I AM directed by Mr. Secretary Chamberlain to request you to inform Mr? Secretary Brodrick that he has received from the Admiralty a copy of the report of the recent Inter-Departmental Committee appointed to consider and report upon the future garrison of Wei-hai-wei, and other questions connected therewith."

2. Mr. Chamberlain concurs in this report, and the Lords Commissioners of the Admiralty have expressed themselves to the same effect.

3. As it will be necessary for a letter to be addressed to the Treasury at a very early date in regard to the bearing of the report upon the financial position of the civil administration, Mr. Chamberlain would be glad to be informed at your early convenience, whether Mr. Brodrick concurs in the recommendations of the Conference.

I am, &c.,

C. P. LUCAS.

• No. 54.

† No. 58

Enclosure in No. 73.

9

PUBLIC RECORD OFFICE, LONDON

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