CO129-345 - Public Offices & Foreign Office - 1907 — Page 92

(This Document is the Property of His Britannic Majesty's Government.)

C. O.

CHINA TRADE.

33136

[August 28.]

CONFIDENTIAL.

RECE

REGE 16 SEP 07

SECTION 1,

[27251]

No. 1.

Sir,

Foreign Office to Board of Trade.

Foreign Office, August 28, 1907. I LAID before Secretary Sir E. Grey your letter of the 13th instant, relative to the alleged discrimination in railway rates on the South Manchurian Railway, whereby Talien is favoured at the expense of Newchwang.

I am directed to call the attention of the Board of Trade to the remarks of Baron Goto, President of the South Manchurian Railway, as reported in Inclosure No. 2 of Sir J. Jordan's despatch No. 274 of the 10th June last, a copy of which was forwarded to you on the 9th instant.

Baron Goto is therein reported to have said "it has been decided to adjust the rates as between, say, Yingkow and Mukden, and Dairen and Mukden to equality on a fair basis proportionate to the mileage, so that Yingkow will not be prejudiced."

These words, if correctly reported, would seem to indicate that a satisfactory arrangement as regards railway rates may be arrived at. The exact meaning of the words underlined above is, however, open to doubt. They would appear to mean that the same freight charges per mile will be made on the line from Dalny to Mukden as are made on the line from Newchwang to Mukden. If this is indeed the case, the desire of the China Association, as expressed in their letter of the 25th June last, would appear to be already met.

If, on the other hand, Baron Goto intended it to be understood that Dalny and Newchwang would be put on an equal footing merely as regards the total charge on freight to Mukden, and not as regards the mileage rate, the objection of the China Association may

be well-founded as regards goods consigned to places beyond Mukden,

In the circumstances, a request will be addressed to His Majesty's Ambassador at Tokio to ascertain exactly what is intended by the Japanese authorities in the matter. Sir C. MacDonald will at the same time be authorized, at his discretion, to express to the Japanese Government the hope that the total rates from Dairen to Mukden and elsewhere in Manchuria will be so arranged that Newchwang will be placed on an equal footing with that port.

I am, &c. (Signed) F. A. CAMPBELL.

Printed in italics.

[2623 ee)

-11

39