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Excellency's notice the circumstance which led to a rupture of the negotiations for an Agreement which was about to be concluded between His Majesty's Commissioner at Wei-hai Wei and the Governor-General of Shangtung in connection with gold mining rights at a place known as Tiger Hill, situated on the boundaries of the territory leased to Great Britain under the Wei-hai Wei Convention.
Your Excellency is doubtless aware that the conclusion of this Agreement was blocked by the action of the German Legation at Peking, who intervened on behalf of a German Company, the Deutsche Gesellschaft für Bergbau und Industrie im Auslande, who had obtained a Concession on the 24th August, 1899, granting them exclusive mining rights over an area of 250 ti round Chefoo, which would include the whole of the leased territory of Wei-hai Wei.
In discussing this question with His Majesty's Chargé d'Affaires, Baron von Mumm stated that a clause of the German Agreement excluded from the sphere of operations any places already conceded for the working of mines, &c., to merchants of other nations, and he considered that this applied to the leased territory, but not to the zone of influence bordering on it. The Imperial Minister repeated this contention in a subsequent conversation with His Majesty's Minister, urging that the action of the German Legation was justified by the judicial interpretation of the British lease of Wei-hai Wei.
His Majesty's Government are of opinion that no distinction between the leased territory and the sphere of influence contiguous to it, such as that claimed by Baron von Mumm, is to be inferred from the terms of the Wei-hai Wei Convention, and I have therefore been instructed by the Marquess of Lansdowne to represent to your Excellency that the presence of foreign miners is incompatible with the spirit of that Convention, and would clearly interfere with the right secured to Great Britain of erecting fortifications and taking such measures for defence as may be deemed necessary within the zone in question.
I am further instructed to express the earnest desire of His Majesty's Government that the Imperial Minister at Peking may be instructed to withdraw his opposition to the proposed Agreement for the regulation of mining operations in Tiger Hill,
I avail, &c.
(Signed) GEORGE W. BUCHANAN.
No. 74.
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But you should strongly oppose French proposal, should it take form, in view of our recent agreement with Chinese Government.
Full information was sent you by last mail with regard to Colonel Manifold's mission.
No. 76.
Memorandum communicated by Count de Lulaing, December 22, 1903.
AT the end of September last the Belgian Government empowered the Belgian Minister in China to suggest to his colleagues in Peking the following transactional proposal with a view to hasten the payment of the Chinese indemnity :-
China to sign, without further delay, the "bons nationaux " payable in gold, which had been sent to the Taotai of Shanghae in December 1902. On the other hand, the Powers to consent to China continuing the six monthly payments of the indemnity. in silver, and to grant the necessary delay, until the entire debt should be paid.
This proposal maintained the principle of the gold payment of the indemnity, as prescribed by the Peking Protocol, but allowed China to pay off her debt, by instalments, in silver. By increasing, in this way, the number of annuities, the sum would amount to the total of the debt calculated on a gold basis.
Nearly all the States interested in the Chinese indemnity question have received this proposal favourably, but the Russian Government have not stated their views, with the result that the arrangement has been deferred, as several foreign Ministers in Peking had been instructed to support the proposal only in case of unanimity among the interested parties.
So as to hasten the signature of the "bons nationaux d'indemnité,” it would be highly desirable that the interested Powers should exert, if possible, their influence at St. Petersburgh with a view to obtaining the adhesion of the Imperial Government to the proposal.
"Would the British Government feel disposed to send instructions of this nature to His Majesty's Minister in Russia ?
The result to be obtained is an important one, for there is no doubt that China would agree to the proposal were it formulated by the unanimous interested States.
London, December 22, 1903.
Sir E. Satow to the Marquess of Lansdowne.--(Received December 22.)
(No. 273.) (Telegraphic.) P.
PROJECTED French railway. Your Lordship's telegram No. 196 of the 4th
Peking, December 22, 1903.
instant.
I was informed some time ago by French Minister that the French were thinking of such a line. In reply to inquiries the Foreign Board deny that he has mentioned it to them, but I think, nevertheless, that he has probably done so.
The whole course of the suggested line has not yet been examined, but the Intelligence Department at Tien-tsin inform me that Coptain Hunter examined the Tsing-kiang portion of it, and reported it impracticable for railway construction.
Subject to your Lordship's approval, I will send the Commercial Attaché with a Royal Engineer officer and two Indian surveyors, whom I hope to obtain through the General at Tien-tsin, to investigate,
No. 77.
The Marquess of Lansdowne to Sir E. Satow.
(No. 212.) (Telegraphic.) P.
Foreign Office, December 25, 1903. ÎNDEMNITY bonds and conversion of indemnity payments. Your telegram No. 271 of the 19th instant. The suggestion made by Belgian Government that we should join in representa- tions at St. Petersburgh is being considered.
You should act at once on instructions conveyed in my despatch No. 281 of the 21st September unless you see strong objections. It is possible that action of Com- mission with regard to conversion of next instalment may be affected by a formal representation to the Diplomatic Body,
No. 76.
The Marquess of Lansdowne to Sir E. Satow.
(No. 209.) (Telegraphic.) P.
SUGGESTED French railway from Ichang.
Foreign Office, December 22, 1903.
It would be as well, before taking action suggested in last paragraph of your telegram No. 273 of the 22nd instant, to consult Colonel Manifold, who, with two other officers, has started for China to conduct further surveys for a line to Szechuan on behalf of British and Chinese Corporation and Peking Syndicate.
No. 78.
The Marquess of Lansdowne to Sir E. Satow.
(No. 215.) (Telegraphic.) P.
Foreign Office, December 26, 1903. ÖN the 7th instant, German transport left Port Said bound for Hangchow Bay, with 212 troops on board.
Please refer to page 280 of North China Intelligence Diary for period ending
the 27th October.
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