CO129-362 - Public Offices - 1909 — Page 639

632

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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[33415]

No. 1.

[September 61.

SECTION 2.

(No. 249.) Sir,

Sir J. Jordan to Sir Edward Grey.--(Received September 6.)

Peking, July 10, 1909. IN my despatch No. 219 of the 22nd ultimo, on the subject of a proposed international settlement at Newchwang, I enclosed translation of a memorandum drawn up by the German consul-general at Mukden, in which the view was expressed that the port of Newchwang was threatened by circumstances with eventual decay, and that it was therefore hardly worth while to take up the responsibilities of an international settlement or of an international conservancy of the Liao River.

I have now the honour to forward herewith copy of a despatch from His Majesty's consul at Newchwang, in which the opinions advanced in the above memorandum are discussed, and reasons given for the belief that Dr. Heintges has taken an unduly pessimistic view of the prospects of the port. Mr. Wilkinson points out that, in spite of the undoubted natural advantages possessed by the rival port of Dalny, Newchwang has compensating advantages which will enable it to hold its own, if only fair treatment is granted in the matter of railway rates and taxation, and if certain obstacles to navigation in the Liao River are removed.

While generally endorsing Mr. Wilkinson's views as to the future possibilities of Newchwang,

I must admit the considerable impression made on my mind by the reports that have reached me of the striking development of Dalny (Dairen) under the efficient methods of Japanese administration. The export, on a large scale, of beans to England and Europe, a practically new feature of Manchurian trade since last autumn-over 150,000 tons were shipped from Dalny to Europe between November and June last- has directed attention to the superior shipping facilities of Dalny, and the customs returns of the revenue collected in the March quarter, 1909, show that Dalny, which was eleventh in the list of Chinese ports in the corresponding period of last year, reached fourth place this year, the amount of revenue collected in the quarter being surpassed only by Shanghac, Canton and Hankow. The fact mentioned in Mr. Wilkinson's despatch that special through rates to stations on the South Manchurian Railway are being offered to shippers by the Railway Company's steamers between Shanghae and Dalny, is only one of many indications that the Japanese extend to their railway and trading interests a protection and encouragement which it seems hopeless at present to expect from Chinese authorities in favour of corresponding Chinese interests. But the develop. ment of Daluy need not necessarily be to the detriment of Newchwang. The trade of Newchwang may well increase owing to the same causes which benefit Dalny, even if the latter advances at a relatively greater pace. There would seem to be ample room for both ports, and the more we see Dalny developed by Japanese energy and forethought, the more incumbent it is on us to encourage, in every possible way, the removal of the disabilities that threaten British interests in the older established trading mart.

I have, &c.

J. N. JORDAN,

Inclosure in No. 1.

Consul Wilkinson to Sir J. Jordan.

(No. 12.) Sir,

Newchwang, July 1, 1909. IN your despatch of the 22nd ultimo, authorising me to enter into negotiations with the local authorities with a view to the establishment at this port of an international settlement, you enclose a translation of a memorandum by Dr. Heintges, the German consul-general at Mukden, deprecating the proposed settlement, on the ground that As the views expressed in Newchwang is doomed to inevitable decay in the future. this memorandum are calculated to give a false impression of the position and prospects of Newchwang, I venture to make the following observations in reply to it.

[2418 f-2]