CO129-373 - Public Offices - 1910 — Page 540

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

CO 39116

AFFAIRS OF CHINA.

TEOR REGE 23 DEC 10

[December 6.]

SECTION 1.

CONFIDENTIAL.

[42787]

No. 1.

(No. 423.) Sir,

Sir Edward Grey to Sir J. Jordan,

Foreign Office, December 6, 1910. I HAVE received Mr. Max Müller's despatch No. 403 of the 8th ultimo on the subject of the conditions prevailing in the Chapel district of Shanghai, and the proposed extension of the area of the international settlement.

In view of the poor prospect which exists at present of inducing the Chinese Government to consent to the extension, I am inclined to adopt the view which Mr. Max Müller puts forward that any further attempt in this direction had better be abandoned for the time being, and that the efforts of His Majesty's Legation should be directed towards bringing about some amelioration of the sanitary and police conditions prevailing in the Chapei district, and a clear demarcation of the settlement boundary. You should, however, not fail to take any opportunity which may present itself of settling in a satisfactory manner the position of the Shanghai gas and water companies.

As the Chinese Government have never recognised the claim to an extension of the international settlement, which was put forward by the Municipal Council, it would not appear that there is anything to be gained by a formal withdrawal of the claim. Such a step 1 think had, therefore, better be avoided.

[1810 ƒ-1]

I am, &c.

E. GREY.

539

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