CO129-350 - Public Offices - 1908 — Page 304

[This Document is the Property of His Britannic Majesty's Government;

302

920

AFFAIRS OF CHINA.

CONFIDENTIAL.

[40882]

No. 1.

[December 14.]

SECTION

9 JAN 08

Sir J. Jordan to Sir Edward Grey.-(Received December 14.)

(No. 510.) Sir,

Peking, October 30, 1907. IN continuation of my despatch No. 500 of the 17th instant, respecting the Peking Syndicate's affairs in Shansi, I have the honour to inclose copies of Memoranda drawn up by the Agent-General of the Syndicate describing his interviews with the provincial representatives.*

The first of these inclosures carries the narrative of events up to the point reached in my previous despatch, and sets forth the grounds upon which the Delegates of the Gentry began by disputing the validity of the Agreement of 1898.

That their attitude towards the Syndicate is one of unveiled hostility has been made sufficiently evident in their meetings with the Agent-General, and if addi- tional proof were necessary, it is afforded by the complaint of Mr. Brown, copy of which I have the honour to inclose,* showing that two of their number have been instigating an active campaign against the Syndicate in Shansi while these negotia- tions are in progress with a view to intimidation. I have brought this charge, the truth of which is hardly disputed, to the notice of the Wai-wu Pu.

At the meeting of the 21st instant the validity of the Agreement was no longer questioned, and a proposal was brought forward by the Gentry for its redeinp- tion.

Mr. Brown replied to this offer that his Syndicate had no desire whatever to be bought out, but he consented under pressure to receive a definite proposition for repurchase on the understanding that by so doing he did not commit either his Syndicate or His Majesty's Government to accept such a solution.

A firm offer of 600,000 taels, say 90,0001., was then made at the next meeting on the 24th instant, but this figure fell far short of the amount which Mr. Brown was induced to name as the minimum which the Syndicate would be likely to accept, viz., 1,500,000, while his counter-proposal that the Chinese should co-operate in working the coal mines with the Syndicate, as they are pledged to do in respect to the iron mines and smelting, was refused all consideration by the Delegates.

At the next conference on the 29th instant, no advance was made towards an agreement, though the offer for redemption was increased to 1,000,000 taels, say 150,000, a tenth of the sum mentioned by Mr. Brown. The offer of co-operation was again made and refused, and a suspension of all further negotiation was only averted by Mr. Brown's consenting to telegraph the Chinese offer for what it was worth to the London Board.

In conversation with the Ministers at the Wai-wu Pu on the 29th instant, I described the course which these discussions had taken, and requested them to utilize the intervening period before the next meeting, fixed for the 4th November, in sending for Ting Ta-jén, the Provincial Judge, and impressing upon him the danger of losing this opportunity for an amicable settlement. They promised to speak to Prince Ching on the subject, and agreed with me that the redemption of the Agreement was undesirable, even if the necessary sum could be found. As regards co-operation, I informed them that Mr. Brown had a definite scheme, which he would lay before the Wai-wu Pu if they so desired.

Whether Mr. Brown has been wise in allowing the negotiations to assume this phase and in entertaining in any degree the idea of redemption may perhaps be open to question, but I have little doubt that if he had refused to listen to the long-winded speeches of the Shansi Delegates, and had insisted on confining the discussion ab initio to the execution of the Agreement, the conference would merely have come to a dead- lock at an earlier date. He can now show the Chinese Government that he has listened patiently to all that the Gentry had to say, and it remains to be seen how far the central authorities can go in compelling the province to accept a reasonable settlement, such, for instance, as Mr. Brown's offer of partnership.

* Not printed.

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