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Moreover, on the 21st September the Acting British Consul received a joint despatch from the Foreign Bureau and the Changsha Customs Superintendent, who, under instructions from his Excellency Governor Pang, addressed a reply to him on this subject.
Annexed to their despatch was a copy of a note addressed by the Wai-wu Pu to the British Minister, containing a statement to the effect that "When Changsha was opened as a Treaty port, there was no intention of making limitations and of not permitting foreign merchants to open business establishments in the city. But as Mr. Bennertz was a person with no capital, and really was not a bond tide commission agent, and, moreover, as the Chinese from whom he had rented a house was a person of no esteem among the local gentry and people, and it was feared that he was relying upon the protection of Mr. Bennertz, and that this would lead to further complications, it was consequently desired that he should be made to remove and live outside the city.
"This feeling really only arose on account of Mr. Bennertz and his landlord, and it was not at all intended to obstruct foreign merchants and to disallow them to carry on business in the city." The tenor of your Excellency's despatch is directly at variance with this note of the Wai-wu Pu,
On receipt of your Excellency's despatch we telegraphed to our respective Ministers on the subject, and have now received telegraphic instructions to the effect that your Excellency's despatch contravenes Treaty provisions, and is, moreover, contrary to the instructions received from the Wai-wu Pu, and we are directed to return your Excellency's despatch.
Your Excellency's reply to us being, as stated above, contrary both to Treaty provisions and to the instructions of the Wai-wu Pu, it is quite impossible for us to accept it, and we therefore have the honour to return it to you.
Gentlemen,
We avail, &c.
(Scals of Japanese and of British Consuls.)
Inclosure 6 in No. 1.
Governor of Hunan to Japanese and British Consuls at Changsha,
Changsha, January 23, 1907,
I HAVE the honour to acknowledge receipt of your joint despatch of the 18th January in reply to mine, stating that I was unable to comply with the request of the British merchants to be allowed to start business establishments inside the city of Changsha.
You say that the statements made in my despatch are utterly at variance with the provisions of the Treaties both with Japan and with the United Kingdom, and that the matter is one which has long been definitely recognized, and admits of no question. You quote the wording of the despatch addressed by the Wai-wu Pu to the British Minister as showing that their views are not in accordance with the tenor of my reply to you, and state that it is quite impossible for you to accept the latter.
In the various Treaties both with the United Kingdom and with Japan, there is nowhere an explicit admission of the right of British or Japanese merchants to open business establishments inside the city. In April 1906, the Foreign Bureau and the Changsha Customs Taotai jointly reported that the business started by the British merchant, Mr. Bennertz, under the style of Yi-bêng-t'ai, had been taken over by the local gentry. Annexed to their report were copies of despatches which had been exchanged in August and September 1905, with the British Consul, Mr. Flaherty, wherein the latter maintained that the city of Changsha had been opened as a Treaty port, which contention had been repeatedly combated by the Customs Taotai.
A few days ago I received a despatch from the Wai-wu Pu stating that, on the 25th December, they had been addressed on this subject by the Japanese Minister, Mr. Hayashi. The latter had contended that foreign merchants were at liberty to reside and trade both inside and outside the city of Changsha, and also that all foreign goods entering the city and all native goods purchased in the city were entitled to pass in and out free of li-kin. To this Prince Ching replied that nowhere in the Commercial Treaties was there an explicit admission of any such rights, and that any of foreigners were no more entitled to set up business establishments inside the city than foreign and native goods were entitled to pass in and out free of li-kin. He added that
the Settlement area, which had been delimited outside the city of Changsha, was at the present time more than sufficient for the requirements of all foreign merchants; that the population inside the city was exceedingly dense and the space very restricted; and that it would be an inconvenience to both parties for foreign merchants to open business establishments there.
On receipt of this communication I instructed the Changsha Customs Taotai accordingly.
We transact business here together within easy reach of each other; and if, in discussing individual cases, our views do not harmonize, nothing is simpler than to set them forth on paper. But it was utterly unreasonable to return my despatch, and it I therefore have the honour to is equally out of the question for me to accept it. return herewith the despatch which was sent back by you, and to state, for your information, as I have done above, the contents of the despatch recently received by me from the Wai-wu Pu.
Inclosure 7 in No. 1.
I avail, &c. (Seal of Governor of Hunan.)
Acting Consul Giles to Sir J. Jordun,
(No. 4.) Sir,
Changsha, January 30, 1907. WITH reference to the question of British merchants trading inside the city of Changsha, I have the honour to report that, as directed in your telegram No. 3 of the 25th January, the Japanese Consul and I returned to the Governor his despatch of the 23rd January, together with his despatch of the 21st December, which he sent back to us after we had returned it to him. I inclose copy and translation of our despatch.
I may mention here that the Chinese authorities do not seem disposed in practice to act up to the extreme views expressed in the Governor's dospatches. With the exception of the case of the property recently acquired by the Wesleyan Mission, on which I am reporting in a separate despatch, there are at present no questions at issue between the Chinese officials and myself; and both Mr. Watson, who is a resident British merchant, and the agent of the British-American Tobacco Company inform me that their goods are always allowed to pass into the city free of li-kin. In one or two instances, where consignments for the former were stopped at the gate, they were immediately released on his appearing in person to claim them.
I have, &c. (Signed)
Inclosure 8 in No. 1.
BERTRAM GILES.
Japanese and British Consuls at Changsha to Governor of Hunan,
Sir,
Changsha, January 28, 1907. WE have the honour to acknowledge receipt of your Excellency's despatch of the 23rd January, sending back the despatch returned by us. Your Excellency states that you have received our communication in reply to yours declining to comply with the request of British merchants to be allowed to start business establishments inside the city of Changsha, wherein we point out that your Excellency's statements are utterly at variance with the provisions of the Treaties, both with Japan and with the United Kingdom, and that the matter is one which has been definitely recognized and admits of no question; and you go on to say that we quote the wording of the despatch addressed by the Wai-wu Pu to the British Minister, as showing that their views are not in accordance with the tenor of your Excellency's reply to us; that it is quite impossible for us to accept the latter, and that we consequently have the honour to return it to you.
Your Excellency concludes by saying that there is nowhere an explicit admission of the right of British and Japanese merchants to open business establishments inside the city; that it is equally out of the question for you to accept the despatch sent back by us, and that you therefore have the honour to return it.
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