14
The exact extent of the municipality's indebtedness to the railway company is not known; and, if British subjects are to pay taxes, should, it would seem, be stated.
4
The members of the assembly of delegates and of the town or municipal council have none of them had previous experience as municipal administrators, and some control over them both in the interests of Russian and other foreign subjects appears to be an absolute necessity.
The possibility of a foreigner other than Russian-Chinese are not included- being elected to the assembly of delegates or the town council is at present, in view of the greatly predominant Russian element, extremely unlikely, and some safeguard against the imposition of unfair taxation or unjust treatment is, as stated by the acting Mr. Willis suggested a court of arbitration; it consul-general at Mukden, necessary. might, perhaps, be sufficient if British subjects were given a general right to carry any legitimate objection to their consul, the matter being left for arrangement between him and the Russian consul, with power to call in a third as umpire and with the right of reference in case of necessity to the higher authorities of both. possible alternative, and conceivably a better plan, would be that we should be officially informed of any proposed new tax or municipal regulation.
A.
Lastly, if it is possible to form a reliable opinion in so short a time, my six months' experience of Harbin have induced me to think that the Russians, at least those on the spot, are a light-hearted and somewhat irresponsible race, in business difficile," and without any matters what can best be expressed by the French word “ knowledge of the way in which to deal with the Chinese whom they caress one For these reasons the more control we are enabled to moment and browbeat the next. retain over our own subjects and their interests the better.
H. E. SLY.
Harbin, June 30, 1910.
[This Document is the Property of His Britannic Majesty's Government
C.O.
AFFAIRS OF CHINA.
CONFIDENTIAL.
[32763]
No. 1.
153
[September Y.]
30731
TREC
SECTION 10
Mr. Max Müller to Sir Edward Grey.-(Received September 9.)
(No. 286.) Sir,
IN my telegram No. 93 of the 5th May I repeated to you a telegram which I
Peking, August 20, 1910. had received from His Majesty's consul-general at Mr. O'Brien-Butler had received a despatch from the local authorities announcing Yünuan-fu stating that the establishment of a trade mart there and forwarding regulations relating to it. Mr. O'Brien-Butler added that the customs had been opened on the 29th April.
I have the honour to transmit the copy of a despatch from His Majesty's consul-general enclosing a French translation of the trade mart regulations in question which had been placed at his disposal by his French colleague, or, to give him the exact title by which he is known, the delegate of the French Ministry of Foreign Affairs in Yunnan.
In regard to these regulations, I may state in the first place that His Majesty's Government have never admitted any distinction between the status of a city opened to trade by the Chinese Government and one opened by treaty or agreement. with a foreign Power, and that they have always refused to recognise any regulations which limit or abrogate the treaty rights of British subjects. We have consistently held the view that British subjects are not restricted either as to trade or as to residence to the settlement or trade uart in an opened port, and that the term "treaty port" must in all cases be held to include the city and the waterway giving access thereto, together with any roads connecting such waterway with the city.
The Yunnan-fu regulations, which are admittedly based on the settlement regulations at Chiuan and Yochow, are open to the same objections as were made by Sir Ernest Satow at the time those ports were opened to trade (vide Sir Ernest Satow's despatch No. 54 of the 8th February, 1906).
I do not propose to criticise the regulations in detail, but, amongst other objection- able features, I may point to article 1 of the general regulations in which it is claimed that Yunnan-fu has nothing in common with the commercial cities opened by treaty and in which it is stated that the administration of the trade mart will be entirely under the control of the Chinese; and to article 6 providing for the arbitrary taxation of foreigners by the Chinese authorities, the former being denied any share in the management of the settlement.
The special regulations in regard to the purchase and lease of property are also open to serious objection in many respects, notably the consular guarantees required from lotholders (article 6), the arbitrary powers of eviction in the event of non-payment of rent (article 9); and the limitation of leases to five years with the prospect of an increase of rent at the end of that time (article 11). This period is far too short, and it is quite unreasonable to suppose that a lessee will erect buildings within three years on land which he only holds on a five years' lease, determinable at the end of that period at the will of the Chinese authorities. We have never abandoned our claim that British subjects have the right, under article 11 of the Treaty of Tien-tsin, to lease land in perpetuity, although there is a growing tendency on the part of the Chinese Government to dispute our contention. The period provided for in the title-deeds issued at Wuhu is fixed at thirty years, and this may be regarded as a reasonable and practical term.
The absence of any reference to customs regulations for the new settlement, is significant and suggests that the Chinese authorities propose to draw the usual distinction between the trade mart and the city of Yunnan-fu, the latter being regarded as "the interior" for purposes of taxation of merchandise.
These observations do not exhaust the field of criticism, but sufficient has been said to show that the regulations, as they stand, are quite unacceptable and render it extremely improbable that any foreign merchants will take up land under the conditions laid down.
The French Minister informs me that M. Wilden has already protested against them, and he told me in confidence that, in course of conversation at the Wai-wu Pu,
[2893 i-1]
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