CO129-330 - Public Offices - 1905 — Page 537

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

CHINA TRADE,

CONFIDENTIAL.

[May 6. PEC

SECTION 1.

C. O.

17633

REG 24 MAY OF

No. 1.

(No. 102.) My Lord,

Sir E. Satow to the Marquess of Lansdowne.--(Received May 6,)

Peking, March 22, 1905. WITH reference to my despatch No. 178 of the 15th May, 1904, forwarding copy of a note from Prince Ching intimating the intention of the Chinese Government to open Chinan-fu, Woi-hsien, and Chou Ts'un in Shantung as trading marts, I now have the honour to transmit translation of a further note from his Highness covering a copy of Regulations approved by Imperial Decree for the first of these places.

Examination of these Regulations seems to indicate that they are calculated to defeat rather than to promote the object which the Chinese Government profess to bave in view, namely, the attraction of foreign merchants to that place, In particular, the suggestion that by buying up the lands and houses which foreigners may desire to occupy and then leasing them to the foreign applicant extortion and coercion between buyers and sellers will be prevented, seems little calculated to convince. The object is clearly to enable the officials to obtain a rack-rent from the foreign merchant who may contemplate establishing a house of business at Chinan-fu.

I have therefore, in replying to the Prince, expressed my belief that trade at such places flourishes best when merchants are left to make their agreements freely with the native owners, citing in support of this view the total failure of the arrange- ments made by the Chinese authorities at Hangehow, Soochow, Yochow, and Wusung to attract foreign settlers.

My German colleague, who has spoken to me on the subject, takes the same view of these Regulations, and has observed to me that if he entertained the desire which has been attributed to him in some quarters, of preventing the development of foreign trade in Shantung, the obvious course would be to express his approval of them.

I have, &c.

(Signed)

ERNEST SATOW.

Inclosure 1 in No. 1.

(Translation.) Your Excellency.

Prince Ching to Sir E. Satow.

Peking, March 7, 1905. I HAD the honour to inform you, on the 17th May, 1904, that this Board had approved the Memorial of the High Commissioner of Northern Ports and the Governor of Shantung, proposing that China should herself open a trading mart outside the city of Shinan, in Shantung, and that Wei-hsien and Chou Ts'ua should be opened as branch marts.

These are trading marts opened by China herself, and the Regulations in regard to their opening should be framed and satisfactorily arranged by the Viceroy and Governor concerned.

A set of nine Regulations has now been received from the High Commissioner of Northern Ports and the Governor of Shantung, which have been submitted to the throne and sanctioned. In their Memorial they declared, further, that, onopening these marts, the first matter of importance was to attract trade, and they proposed, therefore, to postpone for the time being the establishment of custom-houses.

I now have the honour to transmit to your Excellency printed copy of these Regulations.

(1977 -1)