CO129-326 - Foreign Office - 1904 — Page 384

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

2

Benares were imported to the amount of 860 piculs; the current quarter's return, up to the 31st May, is only 364 piculs.

That the cost of Yunnan opium will be enhanced in Canton owing to the circuitons route it will be obliged to take to reach that market is, I venture to think, extremely probable.

I shall not fail to report any further information that I may be able to obtain on this subject in the course of my approaching visit to Nanning.

I am forwarding copy of this despatch to His Majesty's Principal Secretary of State for Foreign Affairs, and to the Financial Secretary of the Government of India at Calcutta.

I have, &c. (Signed)

HARRY H. FOX.

CHINA TRADE.

CONFIDENTIAL.

No. 1.

381

July 19.

SECTION 2.

sir E. Satow to the Marquess of Lansdoume.-(Received July 19.) (No. 191.)

Peking, May 27, 1904. My Lord,

WITH reference to your Lordship's telegram No. 90 of the 24th May and my reply No. 128 of yesterday, I have the honour to transmit to your Lordship herewith a copy of a despatch which I have received from His Majesty's Consul-General at Shanghae, forwarding a Memorandum from the Viceroy of Nanking on the subject of the Conservancy of the Whangpoo River.

This Memorandum contains nis Excellency's proposal that the necessary work should be carried out and paid for by the Chinese Government, and suggest the lines on which this should be carried into effect.

The letter forwarded by the senior Cousal to the doyen of the Diplomatic Corps, in accordance with the Resolution adopted at the meeting of the Consular Body, is now being circulated among the Representatives here, and I shall not fail to acquaint your Lordship with the opinions of my colleagues with regard to the Viceroy's proposals,

Mr. Carnegie, on his arrival here, informed me that on his passage through Shanghae he had been approached by certain of the prominent residents at that port who had confided to him their regrets that they had ever supported a scheme for a Conservancy Board, and their wish that the whole thing might now be handed over to the Chinese.

In writing to His Majesty's Consul-General on the 19th instant, 1 referred to these remarks and informed him that I was unable to take any notice of mere verbal state- ments, but that if the Conservancy Board is no longer desired by the British subjects at Shanghae, the proper way to make known their desire is for the Shanghae Chamber of Commerce, which originally started the scheme officially, to write in the same official manner and make a statement to that effect.

1 stated, however, that it was my belief that the Chinese were not sincere in their proposal to carry out the works, to which they and the Maritime Customs had been consistently opposed since the idea was first mooted in 1865, and pointed out the from necessity of having an international authority to prevent foreign owners encroaching on the river and to expropriate the land which might be required for the works.

I further informed Sir Pelhain Warren that even if some adequate arrangement were arrived at for obviating these difficulties in handing over the work to Chinese control, any scheme with that object must be laid before the Diplomatic Body by the official Representatives of the Chinese Government, since it was they who concluded the Agreement of 190 with the Representatives of the Powers.

I stated that, should the Consular Body send us the proposals of the Viceroy, these would be the views that i should urge upon my colleagues, and I gave it as my opinion that several, if not all of them, would be found to share them.

I have, &c.

(Signed)

ERNEST SATOW.

Inclosure in No. 1.

(No. 20.) Sir,

Consul-General Sir P. Warren to Sir E. Sutow.

Shanghue, May 11, 1904. I HAVE the honour to inclose a copy and translation of a despatch dated the 2nd instant, which I have received from his Excellency Wei Kuang-tao, the Viceroy at Nanking, forwarding a Memorandum with reference to the Conservancy of the Wangpoo River in which his Excellency proposes that the necessary work should be done and paid for by the Chinese Government,

At a meeting of the Consular Body held yesterday it was decided to submit the Viceroy's proposal for the consideration of the Diplomatic Body and at the same time to submit a motion proposed by the Consul-General for Belgium to the effect that the

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