CO129-314 - Public Offices - 1902 — Page 341

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This Document is the Property of His Britannic Majesty's Government.] 337

AFFAIRS OF CHINA.

CONFIDENTIAL.

No. 1.

2+036

[May 29.]

SECTION 1.

Acting Consul-General Scott to the Marquess of Lansdowne.--(Received May 29.)

(No. 42. Confidential.) My Lord,

Canton, April 29, 1902.

I HAVE the honour to inclose herewith copy of a despatch, with inclosure, No. 38 of yesterday's date, which I have addressed to His Majesty's Minister in Peking, on the subject of the renewed claim by the French Consul in Canton for an additional French Concession on the Island of Honam.

I have, &c. (Signed)

JAMES SCOTT.

Inclosure 1 in No. 1.

Acting Consul-General Scott to Sir E. Satou.

(No. 38. Confidential.) Sir,

Canton, April 28, 1902. IN continuation of my despatch No. 35 of the 19th instant, I have the honour to inclose herewith copy of a despatch, communicated to me confidentially, which his Excellency the Viceroy has addressed to the Wai Wu Pu in connection with the last request of the French Consul for an additional French Concession in the Island of Honam.

It will be observed that the Viceroy himself is in favour of the grant of a general foreign Settlement along both sides of the river at Honam and Fati, but his Excellency apprehends that such an arrangement would not be acceptable to all the Powers concerned, and therefore suggests that the area available should be divided among those Powers which have official Representatives in Canton.

I would beg to point out that if this latter course is adopted, the settlement of this question will become of extreme difficulty. The French Consul will inevitably demand a far larger share of the area for his nationals than their commercial interests in this port render necessary; and it may be expected that my American and German colleagues will not suffer themselves to be left behind in this matter. Again, Norway and Holland have official Representatives in Canton, but their commercial interests are practically nil; they have no resident merchants, and therefore have no bond fide claim to any separate Concession.

British interests in Canton are far greater than those of any other Power, and I have no hesitation in giving it as my opinion that the only satisfactory solution of this question is the personal view of his Excellency the Viceroy, namely, that a general foreign Settlement along both sides of the river at Honam and Fati should be offered to all the Powers.

Such an arrangement will give equal rights to the subjects of every Power and cuable them to acquire land and build whenever they find it to their interests to do so. At the same time it will prevent the acquisition of individual and sole rights by any one Power, and will to a very large extent minimize the danger of certain Powers obtaining, on political grounds, an exclusive area to which their commercial interests do not entitle them, to the detriment of the subjects of those Powers whose trade with this port renders increased facilities for obtaining wharves, godowns, and an extended area suitable for residence an absolute necessity.

I would here repeat that the Viceroy has, from time to time, urged the French Consul to instruct his nationals to purchase whatever property they desired by personal dealings with the Chinese owners, as has been frequently and satisfactorily done by German and British merchants. The French commercial men in Canton are, however, only small capitalists, and I have no doubt that the request for an additional French Concession is largely prompted by a desire to obtain at a minimum cost, and below its market value, an area which the French traders could not afford to purchase by ordinary

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