CO129-360 - Public Offices - 1909 — Page 16

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

C. O.

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AFFAIRS OF CHINA.

CONFIDENTIAL.

[42628]

No. 1.

[December ]*

GI JAN 09 SECTION 2.

(No. 502.) Sir,

Sir J. Jordun to Sir Edward Grey.-(Received December 7.)

Peking, November 4, 1908. WITH reference to my despatch No. 422 of the 21st September last, I have the honour to transmit to you herewith copy of a despatch from His Majesty's Consul- General at Shanghae respecting the charges made against the Dutch firm of contractors who are carrying out the dredging operations at, that port.

You will observe that Sir Pelham Warren has learnt on good authority that these charges have been substantiated to a considerable extent as the result of the inquiry which has been held, and that the loss to the Chinese authorities probably amounts to a sum of 75,000 dollars (6,2501.), or half the amount estimated by Mr. Ku lung Ming, who originally preferred the charges.

It is most unfortunate that foreign integrity should have been in any way compromised in an enterprise of great public utility to China and all the Powers in Treaty relations with her.

I have, &c.

(Signed) J. N. JORDAN.

Inclosure in No. 1.

(No. 96.) Sir,

Consul-General Sir P. Warren to Sir J. Jordan.

Shanghae, October 21, 1908. I HAD the honour to address you on the 10th and 14th ultimo with reference to certain irregularities that are alleged to have arisen in connection with the dredging operations which are being carried out by a Dutch firm of contractors on behalf of the Whangpoo Conservancy Board,

The consent of the Viceroy having been obtained, an investigation into the matter The result has been held by the Commissioner of Customs and the Shanghae Taotai. has not yet been made public, but I learn on good authority that the charges made by Mr. Ku Hung Ming have, to a considerable extent, been substantiated, and that the contractors have unquestionably been guilty of serious malpractices of the nature described in my previous despatches. What the loss to the Chinese Government has It has certainly not amounted to it has been found impossible as yet to estimate. reached the sun mentioned by Mr. Ku Hung Ming, but may quite possibly amount to 75,000 dollars, or one-half his estimate.

The Commissioner of Customs, on the advice, I understand, of M. de Rijke, has proposed to the Taotai that, as a punishment, the contractors be called upon to dredge, free of charge, double the amount of material that on further investigation they may be found to have returned in excess of the actual quantity dredged. To this suggestion the Taotai demurs, preferring, I believe, that the penalty inflicted should be in the nature of a fine. The decision will rest with the Viceroy, to whom the Taotai and the Commissioner will report in person in the course of the next few days.

The contractors, whose good name, both in Shanghae and in Holland, has been seriously compromised by the scandal, are unlikely, I am told, to object to any reason- able penalty that may be inflicted upon them.

I have, &c.

(Signed)

PELHAM L. WARREN.

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