[This Document is the Property of His Britannic Majesty's Government.]
328A
AFFAIRS OF CHINA.
CONFIDENTIAL.
[2613]
No. 1.
[February 5.)
C. O.
SECTION 1.
7655
Pre 28 FEB 07
Sir,
Foreign Office to China Association.
Foreign Office, February 3, 1907. I LAID before Secretary Sir E. Grey your letter of the 18th ultimo, on the subject of the compensation to be demanded from the Chinese Government for the loss sustained by the owners of the steam-ship "Sainam" on the West River for the piratical attack recently made on it.
I am directed by Sir E. Grey to say that the arguments put forward in your letter in favour of a demand for consequential damages have received careful consideration, but that His Majesty's Government must adhere to the decision arrived at that no claimi shall be made on the Chinese Government except for actual losses sustained and for compensation for personal injuries.
(Confidential.)
I am to add, although this is not the ground upon which the decision has been arrived at, that the practical effect of a claim for consequential damages or for an indemnity would probably be an interminable discussion with the Chinese Government, who would certainly not admit such a claim, and a corresponding delay in the payment of even those damages which His Majesty's Government are prepared to claim. It is probable, in Sir E. Grey's opinion, that much difficulty will, in any case, be experienced in exacting any damages at all from the Chinese Government.
The heavy pecuniary damages, moreover, which some Powers are in the habit of demanding in the case of attacks on their missionaries and Mission stations have not been found to have much deterrent effect, or to prevent the recurrence of these outrages.
I am to take this opportunity of forwarding to you a copy of a despatch from His Majesty's Minister at l'eking on the subject of the suppression of piracy ou the West River
I am,
&c.
F. A. CAMPBELL.
(Signed)
* Sir J. Jordan, No. 489.
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