2
3
448
(No. 41.) Sir,
Inclosure 2 in No. 1.
Consul-General Sir P. Warren to Sir J. Jordan.
Shanghae, April 4, 1908.
I HAVE the honour to forward to you herewith a copy of a letter which was addressed on the 27th February last by the local branch of the China Association to the parent body in London with reference to the alleged obstruction by the Japanese of foreign trade in Manchuria and their opposition to railway development in that region.
tion of Syndicate goods. The granting and withholding of these facilities doubtless accounts for the falling off in Manchurian trade from Shanghae.
We have been unable to get details of the exports to Manchuria from Japan for 1907, but from February 1906 to August 1907 the imports of American goods into Dalny is stated to have been 6,000 bales against 29,000 bales of Japanese manufacture.
The following figures are instructive :-
1907.
1st July to 31st December, 1907.
I have, &c.
(Signed)
PELHAM L WARREN.
Net foreign imports native imports Exports.. Newchwang. Haikwan taels. 10,587,235 Dairen. Haikwan tuels. 32,437,793 183,591 3,231,145 5,995,845 15,711,583 Total 32,294,663 35,952,528Dear Sir,
Inclosure 3 in No. 1.
Shanghae Branch to China Association, London.
February 27, 1908.
ON the 25th instant we telegraphed to you as follows through the Hong Kong and Shanghae Bank, and have now to add the following observations in support of the views therein expressed :—
"Reports from Manchuria indicate continuance Japanese obstruction foreign trade--- coupled with opposition railway development hinterland Newchwang indicates settled Japanese policy adoption of Russian ante bellum attitude-if acquiesced in policy must lead revival sphere of influence régime and negation open door.
Local feeling growing that Japanese professions co-operation Great Britain support of mutual interests insincere. Fear Japanese action Manchuria will prove bad example Germans Shantung."
I trust this reached you intelligibly.
As your Committee are doubtless aware, it is extremely difficult in a distant country like Manchuria to get chapter and verse for specific cases of obstruction to trade. The Japanese are far too clever to allow definite cases to arise in which clear evidence can be quoted against them; as the trade is almost entirely in the hands of Chinese and their own people, they doubtless feel a considerable degree of confidence that evidence of their action towards foreign trade cannot be produced.
We have, however, the evidence of captains of local British steamers trading to Dairen complaining time after time of obstacles being put in the way of their ships-- delay in allotting berths to them; only allowing them a limited time at the wharf; curtailing the hours during which loading or discharging is permitted-and pointing out that Japanese steamers can work on much more favourable conditions than British.
The discharging of steamers is under the control of the Railway Administration, and it is therefore a reasonable assumption that, if unnecessary difficulties are put in the way of handling merchandize at the port of landing, more favourable treatment will not be accorded to it in the interior.
The experience of importers here is that imports of English and American goods into Manchuria are very much smaller than formerly, when competition was open and free. A Syndicate of Japanese manufacturers has been formed to exploit this trade, and there is reason to believe that it has the active support and patronage of the Japanese Government. According to an article in the Japanese paper "Asahi," quoted in the "Board of Trade Journal" of the 23rd January, 1908, the Government authorized advances to this Syndicate of 5,000,000 yen at 4 per cent. per annum, and a like amount at 4 per cent. per annum, rates of interest lower than that at which the Government itself has borrowed, and considerably under the current rate of interest charged by foreign banks. Special rates of freight have been arranged by Japanese Shipping Companies for carrying cotton goods from Osaka to Dalny, about which perhaps no complaint can be made, but it is admitted by this newspaper that, although the Railway Administration were not in a position to allow a discount on freight directly to the Syndicate, they accorded "certain facilities" for the transporta-
Total
Of this amount railway plant accounts for 25,200,000 Haikwan taels, leaving 7,237,792 as foreign imports into Dairen for six months against 10,587,235 taels into Newchwang for the whole year.
We have as yet no means of ascertaining the details of which the above figures are composed, but if we take the shipments of all kinds of piece-goods from Shanghae to the two ports in 1907 we find by this rough calculation the following result :--
All foreign piece-goods (pieces) Yarn (piculs) Dairen. 708,000 29,000 Newchwang 113,000 4,400If, therefore, for the whole year Dairen only took about one-seventh of the quantity taken by Newchwang, whilst her total foreign imports as above were millions for six months as against Newchwang's 10 millions for twelve months, the assumption is that a very large business has been done with Japan, and that, while British and American trade is being smothered, Japanese trade is active. As direct transfer can be made from Dairen to Mukden by rail, the advantage of the latter route over Newchwang on equal terms is clear. It is stated on good authority that fixity of tenure is refused to any foreigner who proposes to start business in Dairen, and that no encouragement is given to Chinese to go there for business purposes. In many cases hardships have to be endured. These facts may be taken as additional proof that the open door is a myth.
Crowds of undesirables are said to be continually arriving from Japan, public gambling and general demoralization following in their train.
It can hardly be maintained that Japan is loyally carrying out in practice the Articles in the Treaty of Portsmouth bearing on the future administration of that part of Manchuria which lies in her sphere, and under these circumstances it is all the more important that she should not be supported in trying to throttle the foreign trade of Newchwang and its hinterland, as she is doing to that of Dairen. It is important that there should be an inlet through Newchwang as it is still in Chinese hands, and fair treatment to all foreigners may be counted upon there; if "development" of that district falls into Japanese hands, we may look for similar results to those produced at Dairen.
The consequences of Japanese action are most serious and need only be indicated. Her present attitude in Manchuria is one of arrogance tending towards exclusive dealing; she is thereby reviving the "sphere of influence" policy, and it is probable that Japanese action in Southern Manchuria will have considerable influence upon Russia in Northern Manchuria and on Germany in Shantung. Japanese activity in Fokien and Chekiang will probably be the next step, and the future of China will again become a burning question, creating friction between all the Powers.
[1844 -4]
B 2
2
3
448
(No. 41.) Sir,
Inclosure 2 in No. 1.
Consul-General Sir P. Warren to Sir J. Jordan.
Shanghae, April 4, 1908. I HAVE the honour to forward to you herewith a copy of a letter which was addressed on the 27th February last by the local branch of the China Association to the parent body in London with reference to the alleged obstruction by the Japanese of foreign trade in Manchuria and their opposition to railway development in that region.
tion of Syndicate goods. The granting and withholding of these facilities doubtless accounts for the falling off in Manchurian trade from Shanghae.
We have been unable to get details of the exports to Manchuria from Japan for 1907, but from February 1906 to August 1907 the imports of American goods into Dalny is stated to have been 6,000 bales against 29,000 bales of Japanese manufacture.
The following figures are instructive :-
1907.
1st July to 31st December, 1907.
I have, &c.
(Signed)
PELHAM L WARREN.
Net foreign imports
native imports Exports..
:::
:::
Newchwang.
Haikwan taels.
10,587,235
Dairen.
Haikwan tuels. 32,437,793 183,591 3,231,145
5,995,845 15,711,583
32,294,663
35,952,528
Dear Sir,
Inclosure 3 in No. 1.
Shanghae Branch to China Association, London.
February 27, 1908. ON the 25th instant we telegraphed to you as follows through the Hong Kong and Shanghae Bank, and have now to add the following observations in support of the views therein expressed :—
"Reports from Manchuria indicate continuance Japanese obstruction foreign trade--- coupled with opposition railway development hinterland Newchwang indicates settled Japanese policy adoption of Russian ante bellum attitude-if acquiesced in policy must lead revival sphere of influence régime and negation open door.
Local feeling growing that Japanese professions co-operation Great Britain support of mutual interests insincerc. Fear Japanese action Manchuria will prove bad example Germans Shantung."
I trust this reached you intelligibly.
As your Committee are doubtless aware, it is extremely difficult in a distant country like Manchuria to get chapter and verse for specific cases of obstruction to trade. The Japanese are far too clever to allow definite cases to arise in which clear evidence can be quoted against them; as the trade is almost entirely in the hands of of Chinese and their own people, they doubtless feel a considerable degree of confidence that evidence of their action towards foreign trade cannot be produced.
We have, however, the evidence of captains of local British steamers trading to Dairen complaining time after time of obstacles being put in the way of their ships-- delay in allotting berths to them; only allowing them a limited time at the wharf; curtailing the hours during which loading or discharging is permitted-and pointing out that Japanese steamers can work on much more favourable conditions than British.
The discharging of steamers is under the control of the Railway Administration, and it is therefore a reasonable assumption that, if unnecessary difficulties are put in the way of handling merchandize at the port of landing, more favourable treatment will not be accorded to it in the interior.
The experience of importers here is that imports of English and American goods into Manchuria are very much smaller than formerly, when competition was open and free. A Syndicate of Japanese manufacturers has been formed to exploit this trade, and there is reason to believe that it has the active support and patronage of the Japanese Government. According to an article in the Japanese paper "Asahi," quoted in the "Board of Trade Journal" of the 23rd January, 1908, the Government authorized advances to this Syndicate of 5,000,000 yen at 4 per cent. per annum, and a like amount at 4 per cent. per annum, rates of interest lower than that at which the Government itself has borrowed, and considerably under the current rate of interest charged by foreign banks. Special rates of freight have been arranged by Japanese Shipping Companies for carrying cotton goods from Osaka to Dalny, about which perhaps no complaint can be made, but it is admitted by this newspaper that, although the Railway Administration were not in a position to allow a discount on freight directly to the Syndicate, they accorded "certain facilities" for the transporta-
Total
Of this amount railway plant accounts for 25,200,000 Haikwan taels, leaving 7,237,792 as foreign imports into Dairen for six months against 10,587,235 taels into Newchwang for the whole year.
We have as yet no meaus of ascertaining the details of which the above figures are composed, but if we take the shipments of all kinds of piece-goods from Shaughae to the two ports in 1907 we find by this rough calculation the following result :--
All foreign piece-goods (pieces) Yarn (piculs)
Dairen.
Newchwang
708,000 29,000
113,000
4,400
If, therefore, for the whole year Dairen only took about one-seventh of the quantity taken by Newchwang, whilst her total foreign imports as above were millions for six months as against Newchwang's 10 millions for twelve months, the assumption is that a very large business has been done with Japan, and that, while British and American trade is being smothered, Japanese trade is active. As direct transfer can be made from Dairen to Mukden by rail, the advantage of the latter route over Newchwang on equal terms is clear. It is stated on good authority that fixity of tenure is refused to any foreigner who proposes to start business in Dairen, and that no encouragement is given to Chinese to go there for business purposes. In many cases hardships have to be endured. These facts may be taken as additional proof that the open door is a myth.
Crowds of undesirables are said to be continually arriving from Japan, public gambling and general demoralization following in their train.
It can hardly be maintained that Japan is loyally carrying out in practice the Articles in the Treaty of Portsmouth bearing on the future administration of that part of Manchuria which lies in her sphere, and under these circumstances it is all the more important that she should not be supported in trying to throttle the foreign trade of Newchwang and its hinterland, as she is doing to that of Dairen. It is important that there should be an inlet through Newchwang as it is still in Chinese hands, and fair treatment to all foreigners may be counted upon there; if " development" of that district falls into Japanese hands, we may look for similar results to those produced
at Dairen.
The consequences of Japanese action are most serious and need only be indicated. Her present attitude in Manchuria is one of arrogance tending towards exclusive dealing; she is thereby reviving the "sphere of influence" policy, and it is probable that Japanese action in Southern Manchuria will have considerable influence upon Russia in Northern Manchuria and on Germany in Shantung. Japanese activity in Fokien and Chekiang will probably be the next step, and the future of China will again become a burning question, creating friction between all the Powers.
[1844 -4]
B 2
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