[This Document is the Property of His Britannic Majesty's Government.]
2
its history since then has the feeling of insecurity and danger to life and property been so pronounced as at the present moment. It, therefore, strongly appeals to the Committee that the time has arrived for the appointment of a new Viceroy at Canton, both in the interests of native and foreigner.
I am forwarding copies of this letter to His Excellency the Governor and His Britannic Majesty's Chargé d'Affaires at Peking,
I have, &c.
742
AFFAIRS OF CHINA.
[ B ]
CONFIDENTIAL.
[August 31.]
SECTION C
[29351]
No. 1.
38281
(Signed)
E. A. HEWETT, Chairman.
(No. 298. Confidential.) Sir,
RECE Ref 17 OCT 06
Sir Edward Grey to Sir J. Jordan.
Foreign Office, August 31, 1906.
A DESPATCH is being sent to you on the whole subject of Railway Concessions in China, which is in effect an attempt to apply to Railway Concessions a general principle of policy with regard to Chinese affairs which is to some extent a new departure.
The old policy with regard to China has been to extort concessions by pressure and to insist by force, when necessary, upon the letter of them.
In my opinion, the time has gone by when this policy could any longer be made effective, and the time is probably approaching when such a policy might be disastrous. It would certainly be resented by China to-day more than ever, and it is becoming increasingly apparent that foreign trade in China cannot prosper in the face of Chinese ill-will. Apart from these considerations, I feel that a policy of force can only be defended with regard to a nation which is incapable of responding to any conciliatory method, of keeping its engagements or of taking part in the development of its own resources.
I desire, therefore, to adapt the policy of His Majesty's Government to the new departure which China is apparently anxious to make. It may be that her aspirations are at present in advance of her strength and of her experience. But the tendency will be for this disparity to lessen; many of the Chinese are acquiring modern ideas and knowledge in other countries and bringing them into China, and when once China is disposed to learn, the mere contact with Europeans and Japanese in China itself will be a constant source of education.
I am aware that there is some risk in making any such change of policy towards China. Unless it is done very carefully, and unless firmness is combined with tact, it is possible that such a policy may not be understood; the Chinese Government may mistake conciliation for weakness, and seek to take unfair advantage of it instead of responding with good-will.
It will, therefore, be necessary to use great care in dealing with the opportunities which may arise, and in selecting those which are most suitable for the use of conciliation or of firmness respectively. It is, for instance, indispensable in the interests of the Chinese revenue, of the loans, and of trade generally, that there should for some time to come be no disturbance or serious change in the administration of the customs. His Majesty's Government will also expect China to fulfil in substance all binding engagements with regard to concessions which she has previously undertaken; though in some of these, modifications may be introduced to secure good-will and smooth working, or to overcome inevitable difficulties with provincial officials. But if these be frankly recognized by China, and her obligations with regard to customs, and previous concessions loyally observed, His Majesty's Government will not press the Chinese Government to grant new concessions on terms which are embarrassing to China, and will, on the contrary, encourage and welcome her efforts to develop the resources of the country under her own auspices, and on terms which will give her the help of foreign capital and experience when required, without being derogatory to her sovereignty or her independence.
It is unnecessary to suggest that you should observe a sympathetic attitude towards the endeavours of the Chinese Government and people to reform their institutions, and that you should, whenever possible, lend them a helping hand in such endeavours. They must, however, clearly understand that His Majesty's Government will unhesitatingly oppose any attempt on their part to interfere with the extra-territorial jurisdiction exercised in China by the Treaty Powers. An attempt of this nature was, as you are aware, recently made when the Chinese Government, placing a wrong interpretation upon Article VII of their Treaty of 1902 with this country, proposed amendments to the draft Trade-mark Regulations, the effect of which would have been to give to Chinese authorities jurisdiction over foreigners in regard to the registration of their marks.
I have dealt hitherto with the commercial aspect of the new policy.
I come now to a more delicate matter: the position of the foreign Settlements.
[2102 kh-1]
[This Document is the Property of His Britannic Majesty's Government.]
2
its history since then has the feeling of insecurity and danger to life and property been so pronounced as at the present moment. It, therefore, strongly appeals to the Committee that the time has arrived for the appointment of a new Viceroy at Canton, both in the interests of native and foreigner.
I ara forwarding copies of this letter to his Excellency the Governor and His Britannic Majesty's Chargé d'Affaires at Peking,
I have, &c.
742
AFFAIRS OF CHINA.
[ B ]
CONFIDENTIAL.
[August 31.]
SECTION
C
[29351]
No. 1.
38281
(Signed)
E. A. HEWETT, Chairman.
(No. 298. Confidential.) Sir,
RECE Ref 17 OCT 06
Sir Edward Grey to Sir J. Jordan.
Foreign Office, August 31, 1906. A DESPATCH is being sent to you on the whole subject of Railway Concessions in China, which is in effect an attempt to apply to Railway Concessions a general principle of policy with regard to Chinese affairs which is to some extent a new departure.
The old policy with regard to China has been to extort concessions by pressure and to insist by force, when necessary, upon the letter of them.
In my opinion, the time has gone by when this policy could any longer be made effective, and the time is probably approaching when such a policy might be disastrous. It would certainly be resented by China to-day more than ever, and it is becoming increasingly apparent that foreign trade in China cannot prosper in the face of Chinese ill-will. Apart from these considerations, I feel that a policy of force can only be defended with regard to a nation which is incapable of responding to any conciliatory method, of keeping its engagements or of taking part in the development of its own
resources.
I desire, therefore, to adapt the policy of His Majesty's Government to the new departure which China is apparently anxious to make. It may be that her aspirations are at present in advance of her strength and of her experience. But the tendency will be for this disparity to lessen; many of the Chinese are acquiring modern ideas and knowledge in other countries and bringing them into China, and when once China is disposed to learn, the mere contact with Europeans and Japanese in China itself will be a constant source of education.
I am aware that there is some risk in making any such change of policy towards China. Unless it is done very carefully, and unless firmness is combined with tact, it is possible that such a policy may not be understood; the Chinese Government may mistake conciliation for weakness, and seek to take unfair advantage of it instead of responding with good-will.
It will, therefore, be necessary to use great care in dealing with the opportunities which may arise, and in selecting those which are most suitable for the use of concilia- tion or of firmness respectively. It is for instance, indispensable in the interests of the Chinese revenue, of the loans, and of trade generally, that there should for some time to come be no disturbance or serious change in the administration of the customs. His Majesty's Government will also expect China to fulfil in substance all binding engage- ments with regard to concessions which she has previously undertaken; though in some of these modifications may be introduced to secure good-will and smooth working, or to overcome inevitable difficulties with provincial officials. But if these be frankly recognized by China, and her obligations with regard to customs, and previous con- cessions loyally observed, His Majesty's Government will not press the Chinese Government to grant new concessions on terms which are embarrassing to China, and will, on the contrary, encourage and welcome her efforts to develop the resources of the country under her own auspices, and on terms which will give her the help of foreign capital and experience when required, without being derogatory to her sovereignty or her independence.
It is unnecessary to suggest that you should observe a sympathetic attitude towards the endeavours of the Chinese Government and people to reform their institutions, and that you should, whenever possible, lend them a helping hand in such endeavours. They must, however, clearly understand that His Majesty's Government will unhesitatingly oppose any attempt on their part to interfere with the extra-territorial jurisdiction exercised in China by the Treaty Powers. An attempt of this nature was, as you are aware, recently made when the Chinese Government, placing a wrong interpretation upon Article VII of their Treaty of 1902 with this country, proposed amendments to the draft Trade-mark Regulations, the effect of which would have been to give to Chinese authorities jurisdiction over foreigners in regard to the registration of their marks.
I have dealt hitherto with the commercial aspect of the new policy.
I come now to a more delicate matter: the position of the foreign Settlements.
[2102 kh-1]
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