CO129-362 - Public Offices - 1909 — Page 497

2

of levy and expenditure of taxes, suffered in the matter of the maintenance of roads, inefficient lighting, indifferent policing, sanitation, and other municipal services which should, for the general welfare and prosperity of the port and of the trade passing through it, be conducted on a more practical and modern system and at a higher standard of efficiency than has up to the present been possible under the existing régime.

In his despatch to you of the 23rd October, 1906, forwarding a copy of the letter addressed to him, Mr. Fulford makes no comment on the request for an international settlement, but merely states his opinion that, as the Chinese authorities had not then resumed the administration of the port, the time was inopportune to resume negotiations for the acquisition of a British concession on the north bank of the river, in regard to the desirability of which you had directed him to ascertain the wishes of the British mercantile community. It was, no doubt, for the same reason that un attention was paid to the application for an international settlement for which the time was equally inopportune. The British residents, nevertheless, returned to the point in a letter which they addressed on the 15th February, 1907, to Mr. Tebbitt, who bad by that time assumed charge of the consulate, in which they again urged the need of such a settlement which would extend equality of rights and privileges to all nationals whereby alone in their opinion the true commercial interests of the foreign and Chinese trading communities of this port could be safeguarded. Mr. Tebbitt's comments on this letter will be found in his despatch No. 9, of the 26th February, 1907, in which he gives the strongest support to the scheme.

The opinion that I have formed on the question is that too much stress is laid by the British residents on the political expediency in the interests of the trade of the port of an international settlement and too little on its desirability from the point of view of their own health and comfort. I am unable to regard the scheme as a panacea for the mischief that is being done to the trade of the Newchwang by the competition of Darien, although there can be no doubt that under certain circum- stances the existence of an international settlement at this port may be a political advantage of some value. But of the desirability of the establishment of some form of international municipal government in the foreign quarter here for the comfort and well-being of the residents I am entirely convinced. Since the resumption by the Chinese authorities of the administration of the port the conditions in this quarter of the town have gone steadily from bad to worse, not from lack of good will on the part of the officials but from lack of funds. On the 11th March last, the attention of the consular body was drawn to the insanitary state of the foreign residential and business quarters by the Newchwang Chamber of Commerce, who pointed out that the unchecked deposit of garbage and refuse on the banks of the river and vacant land was placing the port in grave danger of an epidemic. The consuls, however, were of opinion that, as the foreign residents paid no municipal taxes, and it appeared to be their own garbage that was the cause of offence, they were not in a position to make energetic representations to the Chinese authorities. I should mention that at the meeting held to discuss the Chamber's letter a suggestion was made that the residents should pay a voluntary tax towards the upkeep of the foreign quarter, whereupon the Japanese consul stated that he could not agree to any proposition which required the payment of taxes by Japanese subjects to the Chinese administration of Newchwang, since in the agreement by which Newchwang was returned to the Chinese it had been stipulated by his Government that no such taxes should be levied from Japanese.

The Taotai subsequently

explained to me that his inability to keep the foreign quarter in better order was entirely due to want of funds. The amount available for the administration of the whole town was altogether insufficient for the purpose, and if he increased the proportion allotted to the foreign quarter it could only be at the expense of the rest of the town where people were already grumbling that the foreigners who paid no taxes were better looked after than they were.

It is the general opinion amongst the residents at this port that if there is any opposition to the establishment of an international settlement at this port it will come from the Japanese, who may regard the scheme as a blow aimed at their political domination in Manchuria. I fail, however, to see on what grounds the Japanese can base their opposition. Although the limits of their own concession here have not been defined, they are nevertheless administering practically the whole area from the eastern boundary of the proposed international settlement to the end of the railway property, greatly, I may say, to the indignation of the Taotai, who accuses them of allowing gambling and opium smoking to he indulged

3

in openly within the locality and ignoring his protests against it. The amount of Japanese-owned land within the proposed settlement area is small, and the titles yg to most of it in dispute. I have referred to the question in conversation with the Japanese consul, but have been unable to obtain from him an expression of opinion, so that I am quite in the dark as to what his attitude will be. The other consuls are all in favour of the scheme, especially my American colleague. The attitude of the Chinese is also uncertain. The Tuotai informed me recently that a settle. ment on the lines of that at Shanghae would never be agreed to by his Government, but he was unable to say how they would regard a scheme of municipal administration like the one intended in which the Chinese and foreign taxpayers had equal rights. I know that personally he is by no means opposed to the idea, of which, if carried out, he sees the possible political advantage to China and the immediate benefit to his own exchequer, which will be relieved of the financial burden which the administration of the foreign quarter now entails upon it. There is, too, possible opposition on the part of Chinese residents within the area to be reckoned with, in which case its extent may have to be considerably diminished.

I have been careful in discussing the question both with Chinese and Japanese officials to use the word "settlement as little as possible, and refer to the scheme as one of international municipal administration. Regarded merely as an improved method of local municipal administration the political objections to it from their point of view at once vanish. In any case there is nothing in the proposal that the Chinese can look upon as an infringement of their sovereign rights.

I venture, in conclusion, to recommend the scheme to your favourable consideration, and, if it should meet with your approval, to request your sanction to commence local negotiations at once.

The enclosed plan shows the area which it is proposed by the British residents to place under international municipal control.

I have, &c.

Inclosure 2 in No. 1.

F. E. WILKINSON,

British Residents at Newchwang to Consul Wilkinson.

Newchwang, May 15, 1909,

Sir,

WE beg to hand you herewith a copy of a letter, signed by the majority of the British residents at this port, and addressed on the 20th October, 1906, to H. E. Fulford. Esq., C.M.G., His Britannic Majesty's consul here at that time, praying His Britannic Majesty's Minister in Peking to secure and preserve for British interests in the port of Newchwang, by the creation of an international settlement, that equality of opportunity and privilege-as compared with the traders of all other nationalitics-to which they are entitled in Manchuria by treaty, and which were seriously threatened.

It having again for some time become manifest to the British community here that the situation, which in 1906 was such as to evoke the emphatic expressions of opinion and urgent requests contained in the letter above referred to, has in no wise improved, but has on the contrary become greatly aggravated, and that the trend of events here has rendered increasingly precarious thic future prospects of British interests in Manchuria, the present British community have decided again respectfully to request you to approach His Majesty's Minister on the subject, and, at à largely attended meeting of British subjects and representatives of British interests held here on the 12th instant, it was unanimously resolved to reiterate the urgent pleas submitted on the former occasion, with special emphasis on the desirability of making, in concert with the other Powers interested, a determined effort towards securing on the south bank of the River Liao an international settlement at the port of Newchwang, controlled by national, not individual, representation, and extending over a given area, which we are of opinion should in the best interests of all concerned, he not less than that outlined in red on the enclosed print from a plan of the eastern portion of the town, copies of which we believe to be in His Majesty's Minister's and your own possession.

In conclusion we would respectfully beg to add that, apart from the wider horizon of British trade interests embraced by this question, the internal administra tion of the section of the town referred to, has for lack of a proper system of levy

B 2

[2391 i-8]