After many negotiations they succeeded in coming to an agreement with the German Asiatic Bank. The bank was consequently granted a Concession by the Imperial Chancellor for the issue of bank notes for fifteen years from the 8th June, 1906.
In judicial affairs the legally educated Judges have worked satisfactorily with their other colleagues, especially those of trading classes. Many difficulties have arisen for the German population by the combination of Colonial and Consular law. The Marine Administration consider it therefore necessary to effect a separation of the two kinds of law, and to work for the formation of an independent Colonial law adaptable to the special requirements of Colonial development, and, in anticipation of this, to pay particular attention to Colonial judicial practice and knowledge of Colonial law. The Government school has made very satisfactory progress.
The weather The sanitary relations were the best on the entire East Asian coast. has been very favourable for agriculture and forestry, and the harvest was the best for years. The relations between the German Government and Chinese Hinterland authorities have been excellent throughout the year.
The Memorandum contains a number of pictures and a plan of the town, showing a surprising development in building.
[This Document is the Property of His Britannic Majesty's Government.]
C. O.
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AFFAIRS OF CHINA.
[April 26.]
REC
CONFIDENTIAL.
Red' 5 JUN 07
SECTION 3.
No. 1.
[13428]
(Confidential.)
Admiralty to Foreign Office.-(Received April 26.)
Sir,
Admiralty, April 24, 1907. I AM commanded by my Lords Commissioners of the Admiralty to transmit herewith, for the information of the Secretary of State for Foreign Affairs, copy of correspondence which has been received from the Commander-in-chief, China, relative to piracy in the West River, China.
I am, &c.
(Signed)
C. I. THOMAS.
Inclosure 1 in No. 1.
(Confidential.)
Sir,
Vice-Admiral Sir A. Moore to Sir J. Jordan.
King Alfred," at Hong Kong [undated]. I HAVE the honour to acknowledge, with thanks, the receipt of your Excellency's letter of the 23rd February, inclosing a copy of a despatch No. 86 addressed to Sir Edward Grey relative to the measures adopted for the suppression of piracy in the inland waters of China.
2. I paid an official visit to his Excellency the Viceroy of Canton on the 28th February, and took the opportunity to mention the subject to him. His Excellency informed me that a flotilla of about fourteen steam launches was to be built and placed under the orders of Admiral Li for patrolling duties on the West River, and that it was proposed to have a small number of steam launches under the Commissioner of Customs to co-operate with Admiral Li's flotilla. His Excellency said that he saw no objection to the proposal, and that communications between Canton and Peking on the subject were proceeding.
3. Although the Viceroy spoke of this co-operation by the Commissioner of Customs, I am doubtful if Admiral Li would carry out such an arrangement in its entirety. In my opinion it is essential that the Customs authorities should have the necessary authority to deal with the situation independently in case the Chinese show any lack in co-operation, which may be expected sooner or later; it should not be left to Admiral Li to guide the situation or to direct the Customs authorities to patrol such and such waters, or to take such and such action.
4. With respect to paragraph 4 of your despatch to Sir Edward Grey, I would point out that very little would be gained by these launches steaming up and down the river; such is the only procedure open to our own river gun-boats, and is attended with poor results. The Commissioner of Customs should have sufficient power to enable his launches to visit all parts of the delta, to search any vessels, and to arrest and hand over to the
criminal or suspect. authorities any proper
5. If the report is true that the launches being built by the Viceroy's order are only to cost 5,000 dollars each, they will not be of much good, and the six Customs launches, if of proper size and speed, would do far better service. I think Sir Robert Hart does not realize why speed is so necessary. It is true there is no "piracy," properly speaking, no piratical craft to chase; it is more often the case of a certain But speed is number of passengers murderously attacking and robbing the remainder. absolutely necessary for rapidity of communications, for a launch to reach a certain spot by a certain time, and our own gun-boats, two of the three being very slow, have often failed to act in time in consequence of not having sufficient speed to get over the ground fast enough against a strong current,
6. I gather that Sir Robert Hart is not much in sympathy with the proposal that the Customs authorities should take up this duty, and I quite understand and sympathise with his objection to provide six launches out of Customs funds as this is so entirely a matter for the Chinese Government; but if the initial cost is borne by the latter perhaps
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