CO129-373 - Public Offices - 1910 — Page 299

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I wished to inform you that I had made a verbal promise to Yen Taotai of Changchun, in the presence of Mr. Willis, that if certain other business which we contemplated in Manchuria was successfully secured by us, we should take no further action against him or any one else for recovery of losses sustained by us owing to non- fulfilment of bean contracts made with the Produce Mart, particulars of which are already before you.

As regards the contracts, Yen insists that all responsibility rests with Mr. Baldwin and the Syndicate, of which Mr. Bassé, Dr. Watt, and a Captain Tsou, are members.

Although we can hardly believe this to be the case, I have thought it advisable to-day to instruct Messrs. Kent and Mounsey to institute legal proceedings against Baldwin, chiefly with the object of ascertaining by whose authority he was permitted to act in Changchun as foreign representative of the Produce Mart, and to sign preliminary contracts with us on behalf of same.

I would ask you, therefore, in the meantime, to take no further action in the matter with the Wai-wu Pu, unless, of course, they themselves approach you with assurances of a satisfactory settlement.

The other business referred to consists of the granting of concessions to a syndicate to be formed by us, to work jointly with the Chinese, the coal mines at Foong-mi- shan and Ho-shi-ling; both these mines are in the province of Kirin, the former situated on a lake north of the Chinese Eastern Railway and west of the Ussuri Railway, and the latter near Changchun on the new railway to Kirin.

I understand from the Chinese that neither Russian nor Japanese rights would in any way be infringed by the granting of these concessions, and I would be glad if you would kindly let us know your views on this subject.

Yen has invited me to call on the Governor of Kirin, to make formal application for the concessions, and this I propose to do as early as I conveniently can, probably in a fortnight's time, and we would deem it a great favour if you could arrange for If so, I would fix a date, say, to some one in the consular service to accompany me. leave Changchun on the 21st instant for Kirin.

The form of the concession is, of course, a matter for much negotiation, but it has been suggested that we might hold same in somewhat similar conditions to those under which the Germans work the Ching Ching coal mines at Ching Ting Fu, near the Peking-Hankow Railway.

We have agreed with Yen, that as far as the Chinese are concerned, should these concessions be granted, they are in no way to be considered as having any relation We whatever to the bean contracts, the two transactions being entirely distinct. must inform you, however, that if our engineer's report is satisfactory, and the working of the mines is secured to us, either jointly with the Chinese, or under our entire control, through the Wai-wu Pu, we should at once withdraw our claim against Yen for the bean contracts.-(Yeedah and Co.)

I regret to inform you that we have received no reply from the Governor of Chekiang re proposal of arbitration.

I leave for Shanghai to-night, and will ask Mr. Savage to endeavour to get an immediate and definite reply from him.

DOUGLAS MCGREGOR.

Ching Ching Coal Mines.-Will you kindly let us know whether you can obtain for us a copy of the Germans' agreement, for the working of these mines.

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As regards the concessions which it is proposed to obtain from the Chinese Govern- ment for working the coal mines at Foong-mi-shan and Ho-shi-ling, Mr. Max Muller regrets that he is unable to express an opinion as to whether such concessions would constitute an infringement of Russian or Japanese rights without first enquiring of the Russian and Japanese Ministers, and this step he is averse to taking in your own interests. Personally he would be inclined to recommend you not to make any preliminary enquiry from Russian or Japanese officials since the Chinese authorities must be presumed to know to what extent they are at liberty to grant mining concessions in the region mentioned.

Mr. Max Müller regrets that none of His Majesty's consular officers is available to accompany you to Kirin for the purpose you mention. The terms of your concessions must, in this preliminary stage, be a matter for negotiation between your firm and the Chinese authorities, and Mr. Max Müller cannot but think it is in your power to obtain a copy of the German agreement for the working of the Ching Ching coal mines.

I am, &c.

E. S. SCOTT.

Sir,

Enclosure 2 in No. 1.

Mr. Scott to Mr. McGregor.

Peking, July 7, 1910.

I AM directed by His Majesty's chargé d'affaires to acknowledge the receipt of your letter of the 2nd instant.

Mr. Max Müller has taken due note of the verbal promise you have made to Yen Taotai of Changchun, that if certain other business in Manchuria is secured by your firm, you will take no further action against him or anyone else for the recovery In accordance with of the losses sustained by you in the matter of the bean contracts.

your request he will therefore abstain from initiating any further steps with the Wai-wu Pu.

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