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Inclosure 7 in No. 1.
Peking Syndicate to Mr. Carnegie.
Dear Sir,
Tien-tsin, August 13, 1906. ANOTHER stage in the discussion of the mining rights of the Peking Syndicate in Shansi was reached on the 9th instant, when their Excellencies Tong Shao Yi and Chu Pa Fei with Mr. Uu received me at the Wai-wu Pu by special appointment, as I have already had the honour of verbally reporting to you.
Mr. Reid, Engineer-in-chief to the Syndicate, who accompanied me to give expert information as to the area and the nature of the ground covered by the proposed permit, produced maps showing the general configuration and the position as regards the railway and the Tao River. It was pointed out that the peculiarly irregular run of the boundary-lines was caused by a desire to avoid old mines and native villages. Most of the ground was hilly and barren, there was no houses on it, and no mines except what had been opened within the last nine months by the Tung Chi Company, who, so far from stopping operations were still sinking new shafts in the very place marked out by the Syndicate.
Their Excellencies selected a large scale map of the proposed permit area, and asked for duplicate copies which we promised to send as soon as possible. (In fact they were delivered at the Wai-wu Pu this morning.) One of these was for the present Governor of Shansi, who, it was remarked had not yet considered the granting of the permit. I did not conceal my surprise at this statement, and I pointed out that, when the permit was applied for in October 1905, a map was delivered to the Governor, and the new Governor had therefore had ample time to satisfy himself that the permit area was reasonable.
Mr. Tong Shao Yi, assuming a dictatorial manner, said that before issuing a permit the Chinese Government wanted an assurance that the Syndicate meant to do genuine mining work and not merely to keep the permit in their pocket. I referred his Excellency to Houan, where the Syndicate had spent a very large sum approximating to 200,0001. in overcoming enormous difficulties, and Mr. Reid exhibited estimates showing that an initial expenditure of 100,000l. was contemplated in Shansi. This seemed to be accepted as satisfactory evidence of earnestness.
I pressed the question of new native mines and said that while the Syndicate would raise no objection to mines producing coal in a small way for local consumption, it would not tolerate competition, and I referred to reports of Tien-tsin foreign firms being asked to supply foreign machinery to the native mines. Mr. Tong strenuously denied the
truth of these reports.
Their Excellencies were informed that, the moment the permit was granted, operations would commence and coal would be produced from the 7-foot seam, also that the Syndicate would in a month or two be able to put out 100 tons of coal a day. Pending arrival of the special plant from England, some plant could be transferred from Honan for immediate work.
The permit maps were again examined in detail, and Mr. Tong asked what guarantee there would be that the Syndicate in its mining would not go beyond the limits indicated, as encroachments underground would not be discoverable. I assured their Excellencies that the workings would always be open to inspection, that great care would be taken to avoid encroachments and that with an institution of the Syndicate's standing no improper action need be feared,
As to the extent of the permit, Mr. Reid pointed out that the Honan "yellow" permit had an area of 60 square li with a "red" permit area in reserve of over 200 square li whereas the present Shansi permit applied for was only 39-27 square li, and, on a large output, would be exhausted in thirty years. He also said that the site selected by the Syndicate for the collieries themselves was mountain land where there were no houses, graves, or properties of any value to the people.
Their Excellencies finally promised that the Governor of Shansi should at once be instructed to draw up the permit and that it should as soon as received be communicated to me together with all the conditions governing it, when I could accept or reject it. I expressed a hope that the terms would be such as to put an end for ever to any chance of dispute, in which their Excellencies concurred. I said further that I was deeply
disappointed at not having the matter concluded, as I expected, at this meeting, and that unless a satisfactory settlement were now arrived at I should have to take very serious action. The meeting then terminated.
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It will be observed that the question of sole right was not once raised at this meeting. Whether the silence of the Wai-wu Pu means that our claim in this respect is now recognized as unassailable and is therefore tacitly conceded I should hesitate to say. The terms of the permit and the conditions governing its issue, when received, will show whether the Chinese Government is really seriously intending to accord the Syndicate its rights or is still actuated by a desire to whittle them away. I think it will be conceded that I have been patient, forbearing, and reasonable, that I have allowed the Wai-wu Pu and the new Governor of Shansi ample time and opportunity to understand the matter in all its bearings, that it is for them now to give a just and satisfactory decision, and that the responsibility for a failure to settle the dispute at once with the serious consequences thereby entailed, of which I have endeavoured to make his Excellency Tong Shao Yi fully cognisant, must rest with the Chinese Government,
I have the honour to inclose a copy of the large scale map above referred to. The lead pencil marking gives very roughly the suggested boundaries of the surface inclosure for the colliery proper, which would amount to 300 mu or thereabouts, the land, of course, having to be purchased by the Syndicate.
I have, &c. (Signed)
GEORGE BROWN, Agent-General.
P.S. August 20, 1906.-The foregoing letter was unfortunately delayed by the difficulty experienced in obtaining another copy of the large scale map. This has, under pressure, been received only this morning.
G. B.
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