CO129-373 - Public Offices - 1910 — Page 19

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will appear after a decent interval, and Russia will seize the Ili region to correspond with Japan's Corea.

As would be expected, the foreign-owned papers, printed in English, are more The "Shanghai Times," an anti-British paper, edited by an moderate in tone. ex-American missionery, says that the only impelling motive for the agreement has been the importance of the control of Manchuria as the chief Factor in the control of China, and regards it as full of significance for China.

The "North China Daily News," the most reliable and influential English journal in China, also attributes the Russo-Japanese rapprochement largely to the inauguration of a forward policy on the part of the United States, and in a lesser degree to the American protest against the status of Russia at Harbin, combined with Mr. Knox's proposal. It discredits the rumoured existence of secret clauses, and says its immediate effect is to give Japan a free hand to carry out the incorporation of Corea, and adds that no diplomatic language can obscure the fact that Mauchuria is If Japan is relieved of anxiety, and an to all intents and purposes lost to China. unproductive increase of her financial burdens, even though her interests clash with those of the United States, it is also true that the Russian Government will be free to direct their attention to Russia's position in Europe. For the rest of the world the advantages would seem confined to the new guarantee of peace. The same paper points out that while events have been taking place which have made the loss of Manchuria a matter of fact, if not of name, China would seem not only to have been blind to the gradual filching of her authority, but to have been doing her utmost to estrange those who might have helped her to retrieve her position, and declare that if the Peking Government had contrived not to alienate the sympathy of every foreign Power, China might have been able to rely on the kindly offices of one country or another at this juncture.

Of all the Shanghai foreign press, the "Shanghai Mercury" alone takes an optimistic view of the preservation by Japan and Russia of the open door in Manchuria. This is accounted for by the pro-Japanese leanings of the paper. The same paper expresses the opinion that the agreement will limit, and not increase, the friction between Japan and America, and professes to see a chance of its bringing the Far Eastern policies of Great Britain and the United States more into line.

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

{B]

AFFAIRS OF CHINA.

CONFIDENTIAL.

[30081]

(No. 249.) Sir,

No. 1,

со 2/913

[August 18

R8rp 10. SECTION 3,-

Mr. Max Müller to Sir Edward Grey. -~(Received August 18.)

WITH reference to my despatch No. 234* of the 19th instant, I have the honour

Peking, July 29, 1910. to transmit herewith copy of a further despatch which I have received from His Majesty's consul at Harbin on the subject of the payment of municipal taxes at that town by citizens of the United States.

(No. 18.) Sir,

I am, &c.

W. G. MAX MÜLLER.

Enclosure in No. 1.

Acting Consul Sly to Mr. Mox Müller.

REFERRING to my despatch No. 14, Confidential, of the 10th instant, I have

Harbin, July 22, 1910. the honour to report that my American colleague is now in receipt of definite instructions in regard to the payment of municipal taxes in Harbin by citizens of the United States.

The American Government, being of opinion that a satisfactory settlement of the municipal question at Harbin will not be long delayed, has agreed-provisionally and without prejudice to subsequent regulations-to the payment through the American Consulate by citizens of the United States of a proper proportion of the taxes levied on account of police, roads, lighting and sanitation. A communication to this effect has been addressed by Mr. Greene to the Russian consul-general.

I gathered from my American colleague that the United States Government, having now determined to pursue a more conciliatory policy towards the Russian authorities on this matter, and being desirous of coming to an understanding with the Russian Government in regard thereto, Mr. Rockhill, the American Ambassador at St. Petersburgh, will return to his post armed with the instructions necessary to enable him to discuss the question at the Russian capital.

I have, &c.

H. E. SLY.

* Not yet received.

[2662 s-3]