CO129-371 - Public Offices - 1910 — Page 501

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

AFFAIRS OF CHINA.

CONFIDENTIAL.

C

[March 14,42

- D

SECTION 1.

Rec 7 APR 10,

[8841]

No. 1.

(No. 55.) Šir,

Sir J. Jordan to Sir Edward Grey.-(Received March 14.)

Peking, February 21, 1910. WITH reference to my despatch No. 12 of the 9th ultimo respecting the conservancy of the Liao River, I have the honour to report that the negotiations which have been proceeding locally have now been brought to a conclusion, and that a scheme which meets with the approval of all concerned has been forwarded by the senior consul at Newchwang to the dean of the diplomatic body for submission to the foreign representatives.

The chief obstacle to agreement lay, as pointed out in my despatch above mentioned, in the objections entertained by the Japanese consul to any scheme involving Japanese contribution to the cost of the upper river improvements. To meet this difficulty Mr. Wilkinson suggested that the sum necessary for these improvements should be contributed by the native customs. The compromise has been accepted, and the scheme is, therefore, briefly as follows:—

A weir is being built to regulate the water of the Shuang Tai Tzu channel, the cost of which will be defrayed out of the sum of 100,000 dollars which, as reported in my despatch No. 355 of the 28th September last, had been raised by the taotai upon the security of a special tax upon native boats. There remains to be raised the money required for the other works, amounting, according to the estimate made by Mr. Hughes, to 676,974 dollars, under the following heads ---

Dollars.

Deepening the bar and otherwise improving the approaches to the port Protecting Duck Island bend

482.974

44,000

Dredgers for the upper river

150,000

Total

676,974

To this should be added the working expenses of the dredgers, estimated at a sum of 28,000 dollars a-year.

It is proposed to levy a tax of 1 per mille on all imports and exports, which should produce an annual revenue of about 25,000 taels. A tax of 24 candareens per ton on the registered tonnage of all vessels visiting the port, whether native or foreign, and of 1 candareen per ton on steamers plying under inland steam navigation rules is expected to yield 30,000 taels, of which 16,000 taels will be furnished by the native junk traffic. The total sum realised by the taxes will, therefore, be approximately 55,000 taels a-year. The consular body have agreed with the taotai that the money collected by the Imperial Maritime Customs shall be devoted exclusively to the improvement of the bar and the protection of the bend at Duck Island, leaving the yearly sum of 16,000 taels collected by the native customs available for the upkeep and running expenses of the dredgers. The taxes are to be collected for twenty years and should be sufficient for the repayment with interest of the loan required.

The Provincial or Central Government are to be asked to grant a sum of 200,000 dollars (not taels as stated in my despatch No. 12 above mentioned) for the purchase of the dredgers and initial expenses. I am afraid that it will be no easy matter to obtain this sum either from the provincial or central authorities in their present impoverished condition, but I intend to give the scheme my whole-hearted support, when it comes up for discussion, as constituting the most practical solution of a question which it is of the highest importance to see taken in hand.

I have, &c. (For the Minister),

W. MAX MÜLLER.

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