CO129-337 - Public Offices & Foreign Office - 1906 — Page 776

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

[A]

# AFFAIRS OF CHINA.

CONFIDENTIAL.

766

?

[October 3.]

SECTION

[33545]

No. 1.

REC CO 39431

P 26 001 06

Sir Edward Grey to Sir J. Jordan. (No. 341.) Sir,

Foreign Office, October 3, 1906.

THE Chinese Minister told me to-day, by instructions from the Wai-wu Pu, that the Chinese Government were very anxious to develop a navy of their own, and for this purpose they required a good harbour. The harbour most suitable was the harbour of Wei-hai Wei, which we at present occupied. It had been leased to us for as long as Russia remained in occupation of Port Arthur. The Russians had now left Port Arthur, and the Chinese Government were therefore anxious to know whether we would give back Wei-hai Wei.

I said I had had no idea that the question of our ceasing to occupy Wei-hai Wei was at all likely to be raised. The lease of the harbour had been given to us when the lease of Port Arthur had been given to Russia. If Port Arthur had returned to the possession of the Chinese, and had ceased to be leased to any one, the question of the cessation of the Wei-hai Wei lease would naturally have arisen. But the Chinese had not resumed possession of Port Arthur. On the contrary, the lease of that place still continued and was in force, though it had been transferred from Russia to Japan by an arrangement which those two countries had made between themselves.

The Chinese Minister said, in reply to this, that he thought the question was altered by the fact that Port Arthur was now in the hands of a friendly Power who was in alliance with us, and he again dwelt on the importance to the Chinese of developing a navy.

I answered that, as regards Wei-hai Wei, it was entirely new to me that the Chinese held this altered view with reference to the lease and intended to raise the question, and I could say no more on that point. It was much too important to be discussed at a moment's notice, and I could only state the view hitherto held about it.

But on the general question of the development of the Chinese navy, I could assure the Chinese Minister that we were anxious to encourage China to become strong and independent.

The Chinese Minister said that it was probable that China, in developing her navy, would need some help in the way of personnel for instruction, and in that case they would very likely apply to us.

I said that I was sure we would be glad to give any help which was in our power to encourage China to develop her own strength, and we were equally friendly to the desire of the Chinese to develop the internal resources of their country for themselves. For that reason, we had lately refrained from asking China for any new concessions or engagements which were likely to be at all embarrassing to her.

But I had been much concerned by the fact that no progress was being made at Peking in the carrying out of engagements into which China had already entered. There were one or two important Railway Concessions under discussion, with regard to which China had taken engagements. The one which concerned me most at the present moment was the Shanghae and Nanking Railway Concession. In this case the Chinese Government had reserved the right to find the money themselves whenever more money should be required for the construction of the railway. They had promised to find the money now needed as long ago as last August, but they had not yet kept their promise, nor would they allow the Company to raise the money. It was perfectly clear that the Chinese Government should either find the money themselves or allow the Company to find it. A point had now been reached at which the construction of the railway must cease unless the necessary money was forthcoming. If this actually happened owing to the refusal of the Chinese Government either to find the money themselves or to allow the Company to find it, a great hardship and injustice would have been done. I hoped, therefore, that the Chinese Minister would let it be known at Peking that I was much concerned at the want of progress in this and other matters of the same kind.

[2183 c-1]

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[This Document is the Property of His Britannic Majesty's Government.] [A] # AFFAIRS OF CHINA. CONFIDENTIAL. 766 ? [October 3.] SECTION [33545] No. 1. REC CO 39431 P 26 001 06 Sir Edward Grey to Sir J. Jordan. (No. 341.) Sir, Foreign Office, October 3, 1906. THE Chinese Minister told me to-day, by instructions from the Wai-wu Pu, that the Chinese Government were very anxious to develop a navy of their own, and for this purpose they required a good harbour. The harbour most suitable was the harbour of Wei-hai Wei, which we at present occupied. It had been leased to us for as long as Russia remained in occupation of Port Arthur. The Russians had now left Port Arthur, and the Chinese Government were therefore anxious to know whether we would give back Wei-hai Wei. I said I had had no idea that the question of our ceasing to occupy Wei-hai Wei was at all likely to be raised. The lease of the harbour had been given to us when the lease of Port Arthur had been given to Russia. If Port Arthur had returned to the possession of the Chinese, and had ceased to be leased to any one, the question of the cessation of the Wei-hai Wei lease would naturally have arisen. But the Chinese had not resumed possession of Port Arthur. On the contrary, the lease of that place still continued and was in force, though it had been transferred from Russia to Japan by an arrangement which those two countries had made between themselves. The Chinese Minister said, in reply to this, that he thought the question was altered by the fact that Port Arthur was now in the hands of a friendly Power who was in alliance with us, and he again dwelt on the importance to the Chinese of developing a navy. I answered that, as regards Wei-hai Wei, it was entirely new to me that the Chinese held this altered view with reference to the lease and intended to raise the question, and I could say no more on that point. It was much too important to be discussed at a moment's notice, and I could only state the view hitherto held about it. But on the general question of the development of the Chinese navy, I could assure the Chinese Minister that we were anxious to encourage China to become strong and independent. The Chinese Minister said that it was probable that China, in developing her navy, would need some help in the way of personnel for instruction, and in that case they would very likely apply to us. I said that I was sure we would be glad to give any help which was in our power to encourage China to develop her own strength, and we were equally friendly to the desire of the Chinese to develop the internal resources of their country for themselves. For that reason, we had lately refrained from asking China for any new concessions or engagements which were likely to be at all embarrassing to her. But I had been much concerned by the fact that no progress was being made at Peking in the carrying out of engagements into which China had already entered. There were one or two important Railway Concessions under discussion, with regard to which China had taken engagements. The one which concerned me most at the present moment was the Shanghae and Nanking Railway Concession. In this case the Chinese Government had reserved the right to find the money themselves whenever more money should be required for the construction of the railway. They had promised to find the money now needed as long ago as last August, but they had not yet kept their promise, nor would they allow the Company to raise the money. It was perfectly clear that the Chinese Government should either find the money themselves or allow the Company to find it. A point had now been reached at which the construction of the railway must cease unless the necessary money was forthcoming. If this actually happened owing to the refusal of the Chinese Government either to find the money themselves or to allow the Company to find it, a great hardship and injustice would have been done. I hoped, therefore, that the Chinese Minister would let it be known at Peking that I was much concerned at the want of progress in this and other matters of the same kind. [2183 c-1]
Baseline (Original)
[This Document is the Property of His Britannic Majesty's Government.] [A] AFFAIRS OF CHINA. CONFIDENTIAL. 766 ? [October 3.] SECTION [33545] No. 1. REC CO 39431 P 26 001 06 Sir Edward Grey to Sir J. Jordan. (No. 341.) Sir, Foreign Office, October 3, 1906. THE Chinese Minister told me to-day, by instructions from the Wai-wu Pu, that the Chinese Government were very anxious to develop a navy of their own, and for this purpose they required a good harbour. The barbour most suitable was the harbour of Wei-hai Wei, which we at present occupied. It had been leased to us for as long as Russia remained in occupation of Port Arthur. The Russians had now left Port Arthur, and the Chinese Government were therefore anxious to know whether we would give back Wei-hai Wei. I said I had had no idea that the question of our ceasing to occupy Wei-hai Wei was at all likely to be raised. The lease of the harbour had been given to us when the lease of Port Arthur had been given to Russia. If Port Arthur had returned to the possession of the Chinese, and had ceased to be leased to any one, the question of the cessation of the Wei-hai Wei lease would naturally have arisen. But the Chinese had not resumed possession of Port Arthur. On the contrary, the lease of that place still continued and was in force, though it had been transferred from Russia to Japan by an arrangement which those two countries had made between themselves. The Chinese Minister said, in reply to this, that he thought the question was altered by the fact that Port Arthur was now in the hands of a friendly Power who was in alliance with us, and he again dwelt on the importance to the Chinese of developing a navy. I answered that, as regards Wei-hai Wei, it was entirely new to me that the Chinese held this altered view with reference to the lease and intended to raise the question, and I could say no more on that point. It was much too important to be discussed at a moment's notice, and I could only state the view hitherto held about it. But on the general question of the development of the Chinese navy, I could assure the Chinese Minister that we were anxious to encourage China to become strong and independent. The Chinese Minister said that it was probable that China, in developing her navy, would need some help in the way of personnel for instruction, and in that case they would very likely apply to us. I said that I was sure we would be glad to give any help which was in our power to encourage China to develop her own strength, and we were equally friendly to the desire of the Chinese to develop the internal resources of their country for themselves. For that reason, we had lately refrained from asking China for any new concessions or engagements which were likely to be at all embarrassing to her. But I had been much concerned by the fact that no progress was being made at Peking in the carrying out of engagements into which China had already entered. There were one or two important Railway Concessions under discussion, with regard to which China had taken engagements. The one which concerned me most at the present moment was the Shanghae and Nanking Railway Concession. In this case the Chinese Government had reserved the right to find the money themselves whenever more money should be required for the construction of the railway. They had promised to find the money now needed as long ago as last August, but they had not yet kept their promise, nor would they allow the Company to raise the money. It was perfectly clear that the Chinese Government should either find the money themselves or allow the Company to find it, A point had now been reached at which the construction of the railway must cease unless the necessary money was forthcoming. If this actually happened owing to the refusal of the Chinese Government either to find the money themselves or to allow the Company to find it, a great hardship and injustice would have been done. I hoped, therefore, that the Chinese Minister would let it be known at Peking that I was much concerned at the want of progress in this and other matters of the same kind. [2183 c-1]
2026-06-02 16:44:11 · Baseline
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[This Document is the Property of His Britannic Majesty's Government.]

[A]

AFFAIRS OF CHINA.

CONFIDENTIAL.

766

?

[October 3.]

SECTION

[33545]

No. 1.

REC

CO

39431

P 26 001 06

Sir Edward Grey to Sir J. Jordan. (No. 341.) Sir,

Foreign Office, October 3, 1906. THE Chinese Minister told me to-day, by instructions from the Wai-wu Pu, that the Chinese Government were very anxious to develop a navy of their own, and for this purpose they required a good harbour. The barbour most suitable was the harbour of Wei-hai Wei, which we at present occupied. It had been leased to us for as long as Russia remained in occupation of Port Arthur. The Russians had now left Port Arthur, and the Chinese Government were therefore anxious to know whether we would give back Wei-hai Wei.

I said I had had no idea that the question of our ceasing to occupy Wei-hai Wei was at all likely to be raised. The lease of the harbour had been given to us when the lease of Port Arthur had been given to Russia. If Port Arthur had returned to the possession of the Chinese, and had ceased to be leased to any one, the question of the cessation of the Wei-hai Wei lease would naturally have arisen. But the Chinese had not resumed possession of Port Arthur. On the contrary, the lease of that place still continued and was in force, though it had been transferred from Russia to Japan by an arrangement which those two countries had made between themselves.

The Chinese Minister said, in reply to this, that he thought the question was altered by the fact that Port Arthur was now in the hands of a friendly Power who was in alliance with us, and he again dwelt on the importance to the Chinese of developing

a navy.

I answered that, as regards Wei-hai Wei, it was entirely new to me that the Chinese held this altered view with reference to the lease and intended to raise the question, and I could say no more on that point. It was much too important to be discussed at a moment's notice, and I could only state the view hitherto held about it.

But on the general question of the development of the Chinese navy, I could assure the Chinese Minister that we were anxious to encourage China to become strong and independent.

The Chinese Minister said that it was probable that China, in developing her navy, would need some help in the way of personnel for instruction, and in that case they would very likely apply to us.

I said that I was sure we would be glad to give any help which was in our power to encourage China to develop her own strength, and we were equally friendly to the desire of the Chinese to develop the internal resources of their country for themselves. For that reason, we had lately refrained from asking China for any new concessions or engagements which were likely to be at all embarrassing to her.

But I had been much concerned by the fact that no progress was being made at Peking in the carrying out of engagements into which China had already entered. There were one or two important Railway Concessions under discussion, with regard to which China had taken engagements. The one which concerned me most at the present moment was the Shanghae and Nanking Railway Concession. In this case the Chinese Government had reserved the right to find the money themselves whenever more money should be required for the construction of the railway. They had promised to find the money now needed as long ago as last August, but they had not yet kept their promise, nor would they allow the Company to raise the money. It was perfectly clear that the Chinese Government should either find the money themselves or allow the Company to find it, A point had now been reached at which the construction of the railway must cease unless the necessary money was forthcoming. If this actually happened owing to the refusal of the Chinese Government either to find the money themselves or to allow the Company to find it, a great hardship and injustice would have been done. I hoped, therefore, that the Chinese Minister would let it be known at Peking that I was much concerned at the want of progress in this and other matters of the same kind.

[2183 c-1]

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