341
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whose anti-foreign attitude has so often been the subject of complaint, was guilty of a deliberate lie when he informed His Majesty's consul that he had sent troops to guard foreign property, and cannot be acquitted of a share in the plot. As for the gentry, not only were two or three of their number identified as they were leading and directing the operations of the mob, not only is it asserted that they subsidised the trained band of "blue" or "black soldiers" who carried out the work of destruction, but the strange immunity enjoyed by foreign property in which they had an interest, as to which an interesting article appeared in the "North China Daily News" of the 13th instant, and is enclosed herewith for your information, and their eagerness to settle at once the claims for compensation constitute yet a further proof, if any were needed, that they instigated the riots and fear the consequences of their action.
I venture to express the opinion that, in addition to exacting the payment of compensation for the damage done and a settlement of the many questions affecting British interests at Changsha, His Majesty's Government should, as suggested in my telegram No. 97 of the 18th instant, insist upon the infliction of The adequate punishment upon the guilty officials and members of the gentry. Chinese Government may, of course, of their own accord inflict this punishment, but the only measure taken up to the present time appears to have consisted in the execution at Changsha of several coolies, who were probably instigated to take a share in the rioting, and whom the local authorities find it convenient to sacrifice on the altar of public expediency. The punishment suggested by the Governor of Hunan for the three members of the gentry most implicated (see Mr. Hewlett's despatch No. 22 of the 10th May), that they should be deprived of official rank and civil rights," does not err on the side of severity in a country where leniency has never been a salient feature of the Penal Code. It is not too much to say that in earlier days an act of rebellion such as the one of which Changsha has lately been the scene, involving a direct assault upon the representative of the throne, would have been met by the levelling to the ground of the city's walls and the execution of a substantial portion of its population. But times have changed, and the Central Government now seem to fear taking even the ordinary measures of repression and punishment usual in European countries. They will, however, soon be obliged to do so in their own defence, for the movement, which they were apparently not unwilling to encourage in its early stages, as being directed against the foreigner, is rapidly assuming an anti-dynastic and revolutionary character. The spirit of sedition may, if unchecked, gain the new army and convert the defenders of the throne into its assailants. Already placards are appearing in which veiled threats are uttered and allusions made to the possible return of the "Han" dynasty, whose period of power is popularly supposed to have been the golden age of Chinese history. The recent riots at Changsha will, in reality, prove to have been a blessing in disguise if their result is to strengthen the resolution of the Central Government and to convince them of the necessity of dealing firmly with a situation which, if allowed to continue unchecked, is fraught with peril to the existence of the Manchu dynasty and the tranquillity of the Chinese Empire.
I have, &c.
W. G. MAX MÜLLER.
[This Document is the Property of His Britannic Majesty's Government]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[22017]
0
21654
[June 20
P5 JUL 10, SECTION 4.
No. 1.
Mr. Max Müller to Sir Edward Grey.-(Received June 20.)
(No. 177.) Sir,
Peking, June 3, 1910. WITH reference to your despatch No. 142 of the 27th April last, I have the honour to transmit to you herewith copy of a despatch from His Majesty's consul at Newchwang respecting the present position of the Liao River Conservancy question.
I would suggest that Mr. Wilkinson's despatch should be communicated to the Lords Commissioners of the Admiralty, who have been good enough to give you their opinion on the scheme.
I have, &c.
Sir,
W. G. MAX MÜLLER,
Enclosure 1 in No. 1.
Consul Wilkinson to Mr. Max Müller.
Newchwang, May 25, 1910. I HAVE the honour to acknowledge receipt of your despatch of the 18th instant, enclosing a copy of a letter addressed to the Foreign Office by the Lords Commis- sioners of the Admiralty, in which the latter have been good enough to give their opinion regarding Mr. Hughes's proposals for the deepening of the bar at the mouth of the Liao River.
In my despatch to you of the 9th February I expressed my apprehension that Mr. Hughes's estimate of the cost of the bar and Duck Island works would be exceeded, and my opinion was also based on the fact that the cost of the cutter suction dredger had been underrated. Mr. Hughes informs me, however, that a suitable dredger of this type, that is one capable of dredging 300 tons of material per hour, can be purchased and brought out here for 20,0001, which is not much above his estimate. It would, he admits, be less expensive in the end to purchase a more powerful dredger, but, in view of his instructions to make his estimate, and especially the initial expenses, as low as possible, he had no option but to select the cheapest that, in his opinion, could do the work required efficiently. Now that the construction of a commercial harbour at Hulutao has been practically decided upon, the ideal arrangement, he thinks, in the interest of both schemes would be for this port and Hulutao to share between them the cost of a dredger of the largest capacity, which could be used alternately at each place. Unfortunately the difficulties in the way are considerable. With regard to the other items in his estimate, Mr. Hughes does not think that he has underrated the expenditure.
The danger that a contretemps, such as occurred at Shanghai in the case of the improvement of the river there, might also occur at this port through shortage of funds is fully realised both by the taotai and the consular body. To provide against such an eventuality by increasing the margin of reserve the latter has, in fact, already addressed a despatch to the senior consul, making certain suggestions whereby the amount collected for conservancy purposes from the trade of the port may be augmented without exceeding the limit of 1 per mille ad valorem stipulated by the Chambers of Commerce, and without increasing the cost and difficulties of collection.
The enclosed memorandum and tables, which have been prepared by the Commis sioner of Customs at this port at the taotai's request, will show you how it is proposed to raise the additional revenue. The plan may be summarised as follows: the rate of levy in the case of native imports paying full duty and of exports is to be 4 per cent.
in lieu of 2 per cent. of the duty, and in the case of native imports paying half duty
8
per cent, in lieu of 4 per cent. As the average duty paid by native imports and exports is less than 24 per cent, ad valorem, the levy, even at this increased rate, will
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