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IC OP V.
302827
Sir E. Grey considers it inadvisable to 10
raise the question as to frontier trade until Germany or Japan claims such a right as already granted to France and Russia and to Great Britain, as regards Burmah.
Mr. Max Muller states he believes Japan is endeavouring to secure a similar concession through Korea and in any case it may be taken as certain that she will make such a claim. A request which under the circumstances the Chinese can hardly refuse, when wo Lay reasonably expect to see Germany doing
the same.
The present state of affairs bears no com- -parison to what existed in the time of Mr. O'Comor and Sir J. Walsham.
Russia and France and before long, probably
Japan and Germany, all have or may have special opportunities toy- encouraging trade with China through their special spheres of
influence.
>
In spite of protests which have been made, there still seems some doubt as to whether we can claim a
reduction of duties on our railway under the most favoured
nation Flause.
France apparently did not consider this clause sufficient, for after the annexation of Upper Burrah, she made a new convention with China (in 1887) inserting in it
article VII.
The British Government strangely enough,
when drawing up the Burmah frontier convention, appear to have
the possibility overlooked XENOBBİRİLİK of a railway being constructed from
Hongkong to China.
If we once make a working agreement with
China, as to the railway, without claiming equal rights with
Russia and Prance it appears to me that we are giving away
our one asset for claiming this right. Later, should we desire
to obtain this concession, China will probably assert thás
is not covered by the most favoured nation clause, and we will
then
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