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Taotai in much the same strain as Mr. Jui had spoken, and he observed that Yuan, He was rich having made the mess, was the proper person to have to clear it up. enough to do so, added his Excellency, However, he feared Yuan's influence at Peking was too strong.
Another suggestion the Viceroy made, half jestingly, namely, that in view of the immense difficulties attending a settlement locally, difficulties to which he knew you were fully alive, you might protest your dissatisfaction with his action, and try to induce the Wai-wu Pu to settle the case at Peking. He left me with the impression that, although he could not make such a suggestion himself, he would be by no means averse to seeing the matter taken out of his hands and settled without his concurrence.
I had the honour to telegraph to you to-day the substance of the Viceroy's remarks.
I am sending a copy of this despatch to His Majesty's Consul-General at Shanghae.
I have, &c.
(Signed)
W. P. KER.
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on the basis of compensation to bond fide British sufferers, and adequate punishment of the officers and others responsible for the disturbances, Sir John Jordan is willing to recommend to His Majesty's Government that a joint inquiry should be held at Shanghae before the present Taotai and the Judge of His Majesty's Supreme Court, which shall investigate exhaustively the causes of the riots and the conduct of the officials, Chinese and British, concerned, including the Taotai Yuan, and shall report on the questions of compensation and punishment of the ringleaders. It must be clearly understood that at the inquiry suggested, all officials and persons concerned of British and Chinese nationality, including the Taotai Yuan, will be required to appear to give
evidence.
Peking, March 8, 1907.
Inclosure 2 in No. 1.
Memorandum given by Mr. Chu Pao Fay, of the Wai-wu Pu, to Sir J. Jordan,
(Translation.)
March 4, 1907.
THE numerous consultations between this Board and your Excellency on the Shanghae Mixed Court case have shown the necessity of first investigating clearly by means of evidence the grounds on which compensation should, or should not, be paid, before negotiations can be opened for settling the case.
The Board accordingly telegraphed to the Viceroy at Nanking to instruct the Taotai at Shanghae to go thoroughly into the whole case, and proceed to Nanking for personal consultation,
The Viceroy has now telegraphed in reply that in this matter the injuries and losses suffered by both Chinese and foreigners should be inquired into equally, and that reciprocal compensation should be arranged, if it is sought to deal fairly with the case. The Shanghae Taotai has already made a careful investigation of the loss and injury to life and property, and in company with the Legal Adviser to the Viceroy, Mr. W. V. Drummond, and the Assistant Legal Adviser, Mr. Lo Cheung Yi, has arrived in Nanking with all the records of the case, and awaits instructions. The Viceroy therefore asks this Board to request your Excellency to send an officer to Nanking without delay to personally discuss the method of reciprocal compensation.
If it is apprehended that the Taotai's investigations are not accurate, officers could be appointed by both sides to revise the investigation before opening negotiations. In conclusion, his Excellency states that if the British Delegate in this matter comes to Nanking still upholding the view that China alone must pay compensation, it would be impossible to open negotiations. The Taotai and his companions are at Nanking waiting, so the Board trusts that your Excellency will send an officer to meet them there and negotiate harmoniously with the Taotai with a view to an early settlement.
Inclosure 2 in No. 1.
Memorandum.
IN the Wai-wu Pu's Memorandum of the 4th March on the question of the Shanghae riots, it is stated that, in the view of the Viceroy of Nanking, reciprocal compensation should be arranged for the damages and injuries suffered by Chinese and foreigners. His Excellency requests that I should be asked to dispatch an officer to Nanking without delay to personally discuss this question of reciprocal compensation, and points out that, if the British Delegate's instructions are to insist on compensation by China alone, it would be useless to open negotiations.
As the Wai-wu Pu is aware, the view of His Majesty's Government is that Chinese officials and Chinese subjects are responsible for the damages and injuries to Chinese and foreigners which were committed during the riots of the 18th December, 1905. If his Excellency the Viceroy considers that he is unable to open negotiations
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