[This Document is the Property of His Britannic Majesty's Government:}
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equitable, and the settlement of which is imperative if British prestige is to be maintained in our dealings with the Chinese officials.
I have, &c.
AFFAIRS OF CHINA.
CONFIDENTIAL.
(Signed)
GILBERT N. HEWETT, Chairman.
[1231]
Inclosure 1 in No. 1.
No. 1.
[January 12.]
SECTION 6. C.O.
6412
275
(Telegraphic.)
Hong Kong General Chamber of Commerce to Sir Edward Grey,
November 15, 1906. COMMITTEE Hong Kong Chamber of Commerce have received through Consul- General Canton your decision regarding owners' clain consequential damages "Sainam." Piracy Chamber Commerce strongly protests against this decision in interests of British trade. China would ask Foreign Office suspend instructions pending receipt written protest dated 21st November.
Inclosure 2 in No. 1.
Sir Edward Grey to Hong Kong General Chamber of Commerce,
(Telegraphic.)
Foreign Office, November 20, 1906. YOUR telegram of 15th November "Sainam piracy. As at present advised, His Majesty's Government see no reason to alter decision arrived at; but presentation of claims will be suspended pending receipt of protest.
Rec Sir J. Jordan to Sir Edward Grey.-(Received January 12, 1907.): 20 FEB 07 (No. 194.) Sir,
IN continuation of Mr. Carnegie's despatch No. 352 of the 21st August last, I
Peking, November 26, 1906. have the honour to transmit to you herewith copy of a note from the Wai-wu Pu, in which they intimate their readiness to accept the amendments of the Shanghae Mixed Court Rules, as formulated in the Collective note from the foreign Representatives of the 14th August last, with two alterations, which are appended to the copy of the amended Rules inclosed herewith.
The proposal of the Wai-wn Pu to omit in Rule 1 the words "and in which no foreign interest is involved," because a provision in this sense already exists in the 1869 Rules, seems to be untenable. The provision in the old Rules only applies to cases where the Chinese defendant is in foreign employ, and does not cover the numerous cases between two Chinese not in foreign employ, yet involving a foreign interest.
The object of the second alteration, suggested by the Wai-wu Pu, is not very clear, and will require further elucidation.
On my way through Shanghae in Septenber last, the Chairman and some members of the Municipal Council at Shanghae spoke to me on the subject of the new Mixed Court Rules, and stated that, although they had no direct knowledge of their contents, what they had indirectly gathered of their purport led them to believe that they would be safe in adhering to the Rules of 1869, and the existing practice of the Court as estab- lished by mutual consent.
They argued that the acceptance of the new Rules would supersede the rights founded upon established practice, and might possibly entitle the Chinese to revert to the letter of the old Rules, and claim the custody of the male prisoners which the Council had had for over thirty years. At that time I had not seen the amendments, and could express no opinion on the subject, but I pointed out the extremely awkward position in which their rejection at the last moment might place us vis-à-vis of the Chinese Government.
On the receipt of the Wai-wn Pu's note, the German and American Chargés d'Affaires came to consult me as to the reply which it should receive. I explained to them briefly the apprehension felt at Shanghae, and inquired if the custody of the male prisoners had received attention during the negotiations, but ueither Baron von Goltz nor Mr. Coolidge could throw any light upon the point.
Mr. Coolidge said that the amendments had been accepted by the United States' Government, and he gave me to understand that he was prepared to sign them as they stood. The United States' Minister, Mr. Rockhill, who has been closely associated with the negotiations, is unfortunately on leave of absence in Japan.
As I did not feel fully convinced, after careful examination of the papers, that the point relating to the custody of the male prisoners was free from ambiguity, and the maiter appeared to be one of considerable moment, I decided to telegraph to you and obtain your permission to send the amendments to His Majesty's Consul-General at Shanghae, and instruct him to consult confidentially with the Judge of the Supreme Court and the British members of the Municipal Connell as to their practical effect.
This I did in a despatch copy of which I have the honour to transmit to you herewith.
I have thought it right to impress upon Sir P. Warren that the amendments embody the utmost which the Chinese Government is prepared to concede at the present time, and to inform him that His Majesty's Government could not, in view of the protracted negotiations which have been carried on for years, view with approval any proposal to adhere to the Rules of 1869, coupled with Mixed Court practice, the combined working of which has not been attended with satisfactory results in the past.
I have, &c. (Signed)
J. N. JORDAN.
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