CO129-362 - Public Offices - 1909 — Page 786

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[This Document is the Property of His Britannic Majesty's Government.26185

AFFAIRS OF CHINA.

CONFIDENTIAL.

[37606]

No. 1.

RESS

[October 11.]

3 NOV 09

SECTION 3.

754

(No. 274.) Sir,

Mr. Rumbold to Sir Edward Grey.-(Received October 11.)

Tokyo, September 20, 1909. I HAVE the honour to forward herewith copy of a despatch which I have received from His Majesty's acting vice-consul at Dairen on the subject of the status of British firms engaged in business in the Kwantung peninsula vis-à-vis the Japanese authorities, and dealing more especially with the question of the registration of insurance companies.

In my reply, copy of which I have the honour to enclose, I have informed the acting vice-consul that, as stated in your despatch No. 141 of the 19th August last, His Majesty's Government do not claim exterritorial rights within the leased territory of Kwantung, and that consequently it would appear that British firms and companies engaged in business in Dairen are in precisely the same position vis-à-vis the Japanese authorities as they would be in Japan itself as regards all questions covered by those laws and ordinances which were made to apply to the Kwantung leased territory by Imperial Ordinance No. 213 of the 22nd September, 1908.

I have, however, instructed Mr. Paton to report to me immediately should he learn that British firms are being discriminated against in the application of these laws.

I have, &c.

Inclosure 1 in No. 1.

HORACE RUMBOLD.

Vice-Consul Gordon to Mr. Rumbold.

(No. 39.) Sir,

Dairen, September 3, 1909. I HAVE the honour to report that I have received a letter from the British firms engaged in business here (with the exception of two who are represented by Japanese), asking for an opinion as to their status in the Kwantung leased territory, vis-à-vis the Japanese authorities.

In their letter it is stated that, although the Civil Administrator informed them as recently as April last that there were no restrictions whatever with regard to foreign merchants transacting business in the leased territory, they are now told that, by an Imperial Ordinance promulgated in September of last year, the various codes and laws of Japan apply to the Kwantung leased territory.

Whilst the civil authorities demand that British firms and insurance companies shall register in accordance with the Japanese law, they appear to be in doubt as to the legality of their position. In reply to enquiries for forms for registration none are to be had, and they withhold information as much as possible, and give no assistance. Apparently they desire that the applications should be made voluntarily. It appears, further, that Japanese insurance companies here are not registered, and the authorities do not require them to be registered, but state they require (separate from that of a firm's business permit) the registration of British insurance companies, and possibly a deposit, entirely independent of any registration or deposit made in Japan.

All communications from the local authorities having been so far verbal, such of the firms as represent insurance companies have addressed a letter to the Civil Administrator asking for particulars of his requirements. Of this letter I have the honour to enclose a copy.

I have accordingly the honour to request instructions as to what course I am to pursue in the event of the Kwantung authorities persisting in their demand that all foreign firms shall be registered in the local courts, that foreign insurance companies

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