This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL
[33675]
No. 1.
30
со
[October 6.]
40914
SECTION 16.
IREC
Ref 6 NOV 06
(No. 345.) Sir,
Mr. Carnegie to Sir Edward Grey-(Received October 6.)
Peking, August 16, 1906. SINCE writing my despatch No. 268 of the 12th June further cases have been reported to me from Shanghae and Newchiwang, in which the local Chinese authoriti e denied the right of British subjects to reside or lease land outside the limits of the Settlements.
On the 3rd July I received a despatch from Ilis Majesty's Consul-General at Shanghae, stating that the Taotai had raised objections to the establishment of an hotel and wine shop outside the Settlement. The objection was made in principle and not to the class of establishment, and was based on the theory that the right of foreigners to carry on business does not extend beyond the Settlement limits. "Sir P. Warren remarks that, as far as Shanghae is concerned, this contention is entirely new, for, as he points out, there are large numbers of wharves, docks, and factories, built by foreign merchants, on the Pootung side of the river opposite to and entirely outside the Settlement. Sir P. Warren replied to the Taotai that, in his opinion, British subjects were within their rights in opening shops and hotels at the place in question, but that if the Taotai beld that there had been a breach of Treaty provisions, the matter could be referred to His Majesty's Minister. I approved Sir P. Warren's auswer, and requested him to write again to the Taotai insisting on our rights under Articles XI and XII of the Treaty of 1858, and warning him to desist from further interference.
Subsequently Sir P. Warren sent me copy of correspondence, inclosed herewith, which had passed between the Taotai and the Senior Consul in regard to the requisition of land for railways and other public purposes belonging to foreigners outside the Settlement. Having observed that the Taotai in his letter had not only misquoted the Article from the Japanese Treaty with China, but had also stated that land at the ports outside the Settlements is rented to foreigners as a special concession outside Treaty provisions," and that the Senior Consul in his reply had permitted this statement to pass unnoticed, I drew Sir P. Warren's attention to the matter, and forwarded to him a copy of my note to the Wai-wu Pu of the 4th June (see my despatch above referred to). I have the honour to inclose copy of a further Report on the matter from His Majesty's Consul-General, in which he shows that the Taotai acts apparently on to fixed principles in regard to stamping deeds for land acquired outside the Settlement, as sometimes he permits land some distance away to be rented while land nearer at band is refused.
Meanwhile, the Taotai again returned to the charge in respect to the establishment He proceeded to of the hotel outside the Settlement, which I have already mentioned. base his objections on the ground that it affected the public order, but Sir P. Warren informs me that no complaints have reached him as to the manner in which the hotel is conducted. His Majesty's Consul-General has transmitted to me copy of lengthy correspondence between himself and the Taotai with which I need not trouble you, as no fresh points of any interest are raised. I have replied to him that, so long as the hotel is managed in a respectable manner the Taotai has no ground for interference.
In my despatch No. 268 I had the honour to state that the question of the rights of foreigners to land outside Settlement or Treaty port limits had also arisen at Newchwang. I beg to inclose copy of a despatch from His Majesty's Consul at that port, containing corespondence he has had with the Chinese authorities on the subject. Mr. Fulford reports that he has not been able to obtain a satisfactory reply to his request for the registration of deeds for land bought by British subjects, and suggests that political considerations connected with the settlement of affairs between China and Japan have had some influence on the Chinese authorities, who apparently have not yet registered a large quantity of land acquired by the Japanese military authorities for a Settlement.
In view of the existing state of affairs at Newchwang I have not considered it advisable to address the Wai-wu Pu again on the subject yet, and I have instructed Mr. Fulford to take an early opportunity of discussing the matter with the Shanhaikwan
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