CO129-373 - Public Offices - 1910 — Page 115

:

171

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

AFFAIRS OF CHINA.

CONFIDENTIAL.

[31006]

No. 1.

[August 25.]CO

SECTION 3.

Mr. Max Müller to Sir Edward Grey.-(Received August 25.)

(No. 270. Confidential.)

114

30223

RECR REG 3 OCT 10

Sir,

Peking, August 8, 1910. WITH reference to Sir John Jordan's despatch No. 560 of the 14th December, 1908, I have the honour to transmit herewith the copy of a despatch from His Majesty's consul-general at Mukden, forwarding a new agreement signed on the 22nd May for the joint working of the Pen Hsi Hu coal-mine. The former draft greement was not sanctioned by the Chinese Government, and is replaced by the present one, which has recently been duly ratified.

The terms may again be considered favourable to the Chinese, although the Japanese company are not bound quite so closely by the dictates of the Chinese authorities in the matter of mining regulations as they were in the former agreement.

I have, &c. (In the absence of His Majesty's chargé d'affaires),

Enclosure 1 in No. 1.

ERNEST SCOTT.

Acting Consul-General Willis to Mr. Max Müller.

(No. 34. Confidential.) Sir,

Mukden, July 28, 1910. WITH reference to my despatel No. 80, Confidential, of the 7th December, 1908, in which I forwarded translation of a draft agreement for the joint working of the Pen Hsi Hu coal-mine by Chinese and Japanese, I have the honour to report that the Central Government refused to ratify this agreement, and further negotiations were entered upon.

I now have the honour to enclose translation of a new agreement which was signed on the 22nd May last by Mr. Han, Commissioner of the Foreign Board of Fengtien, Mr. Koiké, the Japanese consul-general, and a representative o Messrs. Okura and Co., the Japanese firm who have hitherto been exploiting

the mine.

This agreement has recently been approved by the Central Government. The agreement appears very favourable to the Chinese Government. However, in the original draft the share capital was fixed at 1,000,000 dollars only; it is now doubled, and it would thus seem probable that the amount expended up to the present by Messrs. Okura and Co. in the development of the mine, which is now declared to be 1,000,000 dollars, and is to form their share in the capital of the joint company, has been very largely over-estimated.

The translation has been made by myself from Chinese text of the agreement, which was supplied to me confidentially by my Japanese colleague.

Enclosure 2 in No. 1.

1 bave, &c.

ROBERT WILLIS.

Agreement for the Joint Working by Chinese and Japanese Merchants of the Pen Hsi Hu Colliery, signed at Mukden, May 22, 1910.

THE Commissioner of the Bureau of Foreign Affairs at Mukden, having bee appointed by the Viceroy of the three eastern provinces, the superintendent of a

(2862 bb-3

-31