2
Towards the commencement of this month unsuccessful attempts were made by the police authorities to collect the tax, and on the 9th an employé of one of the leading merchant firms was arrested by order of the Chief of Police. The Merchant Guild thereupon sent deputies to demand his release, but these were detained at the central police station. The Guild then ordered a general cessation of business, and all the shops were closed on the 11th and 12th instant. There was no disorder, but from the activity shown by the police throughout these two days, it would seem that the authorities were somewhat apprehensive. At any rate, the strike proved successful, as it has now been decided to reduce the tax to a levy of 2 per cent. on the estimated rental of houses of more than ten rooms, and 1 per cent, on the smaller buildings. Houses of less than three rooms are to be free from taxation.
This compromise was arranged at an interview between the leading members of the Guild and Huang Taot'ai, the head of the Board of Agriculture and Commerce. The Guild further demanded the dismissal of Wang Taot'ai, the Chief of Police, and the "Shengking Daily News "of the 14th states that the Viceroy has removed him.
The incident is instructive, as showing the difficulties of Chinese officials in imposing any new form of taxation, even where, as in the present instance, there are reasonable grounds for its imposition.
During the past two years large sums have been spent for municipal purposes in this city, the majority of which have been paid for out of the 7,000,000 taels saved by the former Viceroy, Chao Erh Sun, and handed by him to the present Administration. There are now about 10 miles in all of macadamized roads, an underground drainage scheme has been carried out in the principal thoroughfares, the streets are lighted, though only with oil lamps, and a tolerably efficient police force has been established. Large sums have also been spent on educational purposes, and, amongst other enterprises of the local government, the establishment of an Agricultural and Forestry department under foreign experts, of a civil hospital under the charge of a German doctor, and the erection of prisons on modern lines, all tend to show that the Manchurian Administra- tion is anxious, as far as funds will permit, to advance along the lines of modern civilization. It is, however, certain that the ordinary revenue of the three eastern provinces will not suffice for enterprises of this nature, and new sources of taxation will have to be found, and found quickly, or the city will drift back to its original condition of squalor.
In the present case of the house tax, it would appear that a mistake was madei demanding as much as 7 per cent. in the first instance-a lesser sum might have been carried through without difficulty-and there is further no doubt that there is a general feeling that much of the expenditure of the present Administration is unnecessary and. often recklessly extravagant.
I have, &c. (Signed)
R. WILLIS.
[This Document is the Property of His Britannic Majesty's Governme
AFFAIRS OF CHINA.
CONFIDENTIAL.
[43325]
No. 1.
17
1188
[December 12.]
# # JAN 09 SECTION 5.
Sir J. Jordan to Sir Edward Grey.-(Received December 12.) (No. 481.) Sir,
Peking, October 26, 1908. WITH reference to my telegram No. 161 of the 21st October, I have the honour to inclose copy of a despatch received from His Majesty's Consul-General at Mukden containing a Chinese version of the recent collision between Japanese and Chinese troops in the Chientao district.
From the fact that the Chinese Government have to-day for the first time in my experience taken pains to make an official communiqué about this incident to the foreign press, copy of which is also inclosed for your information, I gather that it has created some uneasiness.
I have, &c.
(No. 72.) Sir,
(Signed)
Inclosure 1 in No 1.
Acting Consul General Willis to Sir J. Jordan.
J. N. JORDAN.
Mukden, October 20, 1908. MR. KEY, the Assistant Commissioner of the Mukden Foreign Office, called on me yesterday afternoon and gave me the following account of the recent collision between the Japanese and Chinese troops in the Chientao district :--
Japanese troops have for some time been engaged in erecting permanent barracks on the north bank of the Tiumeon, and the Chinese Frontier Commissioner resident at Yen-chi-ting has twice sent police to remonstrate against their action. Recently a body of about twenty police were sent to make a third protest; these were fired on by the Japanese soldiers, and eight were wounded. The wounded men were taken charge of by the Japanese, but two of them have since died. The Chinese police, who were unarmed, could not reply to the Japanese fire.
Mr. Key stated that this information had been telegraphed to the Viceroy by the Frontier Commissioner. No detailed reports had yet been received.
From the way in which Mr. Key spoke to me, it seemed clear that the Manchurian Government are apprehensive of a forward movement of the Japanese in this district, which, in the absence of roads in Chinese territory, they would be powerless to resist.
I telegraphed the substance of this despatch to you yesterday evening.
I have, &c.
(Signed)
ROBERT WILLIS.
Inclosure 2 in No. 1.
Communiqué to the Foreign Press.
ON the 16th of the 9th moon (the 10th October, 1908), Shiladaticbilo, of the Japanese gendarmerie, with a Corean official named Li Jen Ming, were supervising the construction of a four-roomed building, to be used as an outpost, in the Mow Kun village, Yen Ki district (Chientao), China. In the course of erecting the said building a Chinese official inspector named Li, with an assistant, a corporal, a gendarme, and four police, went to that place and peacefully called upon them to stop the work. Instead of heeding the request, the Japanese uttered impolite words, and stationed there about a dozen of gendarmes to keep a watch of the work. Then the Chinese official sent their police to stop the workmen. Thereupon the Japanese gendarmes forcibly tore with their hands the Chinese official's clothes and uniform, having their marks and buttons all broken off, and behaved violently towards the Chinese interpreter.
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