CO129-337 - Public Offices & Foreign Office - 1906 — Page 704

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gramme, their prospective municipality can block all egress to the north and prevent extension eastward along the north line of the present Settlement limits. This would mean that the growth of the city between the water front of the Wangpo and the Woosung Railway line would be curtailed, and as a final result there would be absolute confinement of the Settlement to the present area. Such a future for the Shanghae of the present is not desired by the responsible Chinese classes who now appreciate the benefit and utility of modern innovations, and who are not only content, but also

eager, to reside in sections under foreign control. The increase in population, as is evidenced by the recent census and by daily current observation, warrants proper extension of the Settlement, and any restriction will work a hardship and do irreparable injury which will react upon the interests of all people. The Settlement area is already crowded, the values of land have increased enormously, and apparently the only outlet for the city's natural and logical growth is toward the north and east, the sections which apparently the Chinese authorities are now determined to close against any species of foreign supervision.

We earnestly urge the consideration of this matter by the Diplomatic Body, and hope that some arrangement or understanding can be reached by which Shanghac can be allowed to attain its manifest destiny--that of being a still greater Treaty port in which Chinese and foreigners can reside under a system of Government mutually satisfactory to those whose best interests are involved.

Your Highness,

I have, &c.

(Signed) D. SIFFERT, Consul-General for Belgium and Senior Consul.

Inclosure 6 in No. 1.

Draft of Note for Wai-wu Pu.

J

Peking, July 1906. THE doyen of the Consular Body at Shanghae received a despatch on the 4th May from the Taotai, in which it is stated that the Superintendent of Southern Trade formerly sanctioned the renting of land in the Paoshan district to foreigners as a special favour and not as a Treaty right. The Taotai at the same time informed the Senior Consul that the Superintendent of Southern Trade had deputed Taotai Hsü Nai-ping to proceed to Shanghae and concert measures for establishing a Chinese Commercial Settlement and municipality at Chapei,

I have the honour to observe that the land referred to is largely rented by foreigners, who acquired it legitimately under rights conferred by Treaty. That the Taotai, at an important port like Shanghae, should contend that the renting of this land to foreigners is a favour and not a right betrays an ignorance of the Treaty provisions which may provoke complications, and I would suggest to your Highness that he should be instructed to exercise more care in his communications to the Consular Body on matters of international importance.

I also beg to request that instructions be sent to the Superintendent of Southern Trade and the local authorities concerned to refrain from establishing a Chinese Com- mercial Settlement or municipality on land on the confines of the foreign Settlements, large portions of which are rented by foreigners of various nationalities. Any attempt to create such a Settlement or municipality can only spring from motives unfriendly to legitimate foreign interests, or be aimed at the prosperity of the foreign Settlements. If his Excellency the Superintendent of Southern Trade desires to make experiments in municipal control, it is open to him to begin with Shanghae city, the streets, lighting and water supply, and sanitation of which are capable of great improvement, but it is not permissible to him to select areas which have been made valuable by foreign capital and enterprise.

I avail, &c.

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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[30598]

No. 1.

695

C. O.

[September 10.136382

SECTION REC

TREGE 3 OCT 06

Mr. Carnegie to Sir Edward Grey.-(Received September 10.)

(No. 323.) Sir,

Peking, July 25, 1906. WITH reference to Sir E. Satow's despatch No. 150 of the 5th April, I have the honour to inclose a précis of the chief documents in a long correspondence which has been carried on since April of last year in consequence of obstructive action on the part of the Viceroy of Canton relating to inland navigation in the Province of Kuangsi.

As you will be able to observe from this précis, the Viceroy at first refused to permit the issue of the necessary papers to British launches wishing to ply to Pose, Lungchow, and Liuchow, on the ground that order was not sufficiently restored in Kuangsi. Sir E. Satow being unable to accept this as a valid reason in the circumstances, the Viceroy offered to sanction steam navigation of the upper reaches of the West River on conditions which were not acceptable; but, after further pressure, he discarded these conditions, and agreed to launches running anywhere within Kuangsi from Wuchow in strict accordance with Treaty provisions.

His Excellency's action in pursuance of this Agreement was peculiar. Instead of allowing the launches to ply from Wuchow to any place in Kuangsi, which was the plain meaning to be attached to it, he issued orders to cancel the certificates under which launches had been plying between Chiangkon, Kuei-hsien, and Nanning, The Viceroy was evidently determined to avail himself of every loophole offered by Rules 7 and 8 of Annex (C) to the Commercial Treaty of 1902, and as the readiest means of solving some of the difficulties, Sir E. Satow approached the Wai-wu Pa once more on the question of the opening of Nanning to international trade. Further steps taken by the Viceroy in October to restrict inland navigation by launches led Sir E. Satow to instruct His Majesty's Consul-General to renew the local pressure, and on the 30th October he was informed by a telegram from Mr. Scott that inland navigation "above Wuchow was resumed.

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Some remarks in the Wuchow Intelligence Report for the December quarter drew Sir Ernest's attention to the subject once more, and led him to inquire what was meant by navigation "above Wuchow." When it was ascertained that the right of British vessels to ply from a Treaty port to Liuchow or Pose was still disputed, definite instructions were sent to His Majesty's Consul-General that applications should be made again at Canton and Wuchow in strict accordance with the Rules, and formal protests lodged with the Customs and the Viceroy in cases where the applications were illegally refused. Mr. Scott was also instructed to report particulars of each protest by telegraph, in order that the necessary representations should be made immediately at the Wai-wu Pu. It would appear, however, that Mr. Mansfield, who succeeded Mr. Scott, has been able to induce the Viceroy to recognize the error of his position in these matters, for in a despatch of the 11th July, received a few days ago, I was informed that his Excellency had at last given authorization to British launches to run under Inland Navigation Rules to Pose, Lungchow, and Liuchow,

The correspondence being bulky, I have not thought it necessary to furnish you with copies. The précis will, I trust, enable you to follow the main course of the long controversy, and to judge of some of the difficulties which arise in the task of bringing a Chinese official of the Viceroy's disposition to recognize an obvious Treaty right.

I have, &c. (Signed) LANCELOT D. CARNEGIE.

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