CO129-338 - Public Offices & Others - 1906 — Page 113

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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[35558]

No. 1.

109

[October 22.]

SECTION 1. C

47844

14 NOV 05.

(No. 367.) Sir,

Mr. Carnegie to Sir Edward Grey.--(Received October 22.)

Peking, September 5, 1906.

I HAVE the honour to inclose translation of a note which I have received in reply to the communication I addressed to the Wai-wu Pu on the 21st ultimo, copy of which was transmitted in my despatch No. 354 of the 22nd ultimo, relative to the proposal of the Chinese authorities to establish a municipality or Administrative Bureau ontside, but adjoining, the northern limits of the International Settlement at Shanghae.

The Wai-wu Pu state that the excellent system of municipal government in the International Settlement is much appreciated by them, and that the project of the Taotai is to start a Chinese Settlement with a similar system of administration by which foreigners resident in the locality will profit. Further, that my remark that foreigners at Shanghae had always managed their municipal matters themselves and would continue to do so implies not only obstruction of Chines measures of local reorganization, but also that the power of extending the Settlement should be unlimited, a view with which they are unable to agree.

I have shown this note to my American and German colleagues. The former has not yet replied to the note from the Wai-wu Pu of the 16th ultimo, identical with that sent to me and inclosed in my above-mentioned despatch; and the latter is awaiting a report from his Consul-General at Shanghae before taking action. They are now considering what course it is most advisible to pursue, as the Chinese authorities appear to be determined to carry out this scheme, in spite of the protests which have been made. I do not propose to take any further steps myself, as Sir John Jordan is expected shortly, and as he passed soine days at Shanghae, he has probably obtained information on the spot which may be of service in future correspondence with the Wai-wu Pu.

I understand that the majority of my colleagues show little interest in this question, and are glad to avail themselves of the excuse that as the American Minister and I have taken individual action there is now no reason for the proposed joint note to which I have referred in previous despatches. Neither Mr. Rockhill nor I regret this decision of our colleagues, as we consider that an erroneous impression as to the importance with which this matter is regarded by us might be conveyed to the Chinese Government were the Diplomatic Body to take it up in a luke-warm and undecided

manner.

I have, &c.

(Signed)

LANCELOT D. CARNEGIE,

(Translation.)

Sir,

Inclosure in No. 1.

Wai-wu Pu to Mr. Carnegie.

August 27, 1906.

I HAVE the honour to acknowledge receipt of your note of the 21st August on the subject of the establishment of a Chinese municipality at Chapel.

[Note of the 21st August quoted at length.]

I have the honour to state, in reply, that the excellent system of municipal govern- ment, police, roads, public sanitation, &c., established in the foreign Settlement at Shanghae has long been appreciated by this Board, and that the present project of the Shanghae Taotai to start a Chinese Settlement at Chapei outside the foreign Settlement is precisely in imitation of the system of police, public sanitation, and roads which prevails in the foreign Settlement. There is no doubt that the foreign residents in that locality will profit thereby, and that no injury will be inflicted on the foreign Settlement,

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