2
the whole idea of a trade mart as distinct from an ordinary open port was unacceptable to His Majesty's Government, and I urged him to persuade his Government to open Yunnan-fu to trade on the same terms as the ports on the coast--in other words, to make the trade mart coextensive with the walled city of Yünnan-fu and one or two miles of country around. I pointed out that beyond the arbitrary marking out by boundary stones of a certain portion of city suburb and open country beyond as the trade mart there was absolutely no distinction between it and the remaining suburbs and the city itself; and the only object in its establish nent appeared to he to confine foreigners to a kind of ghetto under more or less vexatious restrictions, which, I was sure, were either not binding on Chinese at all or only in a modified degree. What possible difference was there, I asked, in the circumstances of their residence between M. Covi, an Italian hotel-keeper who happens to live within the limits of the trade mart, and M. Pasquier, a French merchant living in the city? The only one I could think of was that the one could put out a signboard with an indication of his name and business and the other could not; otherwise, both enjoyed exactly the same rights, including those attaching to extra-territoriality, and were subject to the same obligations.
Mr. Shih steadily maintained that Yunnan-fu was a city in the interior, and that China need not allow foreigners to reside there at all; but it was pleased to open the place to foreign trade and residence under certain conditions which it had the absolute right to impose, and if foreigners did not like these conditions they had only to keep away. He said that the trade mart rules were only provisional and could be modified; what was desired was that the various foreign Powers should accept them in principle. If I considered the area of the trade mart too small it could be enlarged, and as to the limit of five years for leases of Government land, the Government had itself come to the conclusion that the term was too short. He tried to argue that the trade mart police had certain powers in the case of petty offences committed by foreigners which were different to those of the city police, but this I would not admit for a moment; I maintained that all offences committed by foreigners, whether within or without the limits of the rade mart, were judiciable by their consuls alone, and by no other persons whatsoever.
In conclusion, Mr. Shih begged that I would furnish him with my objections and my suggestions in writing, so I subsequently handed him a memorandum, of which the following is a copy ---
Specially objectionable :
"General Regulation 1.- Nothing common with commercial cities opened by
treaty.'
"General Regulation 2.-—Arbitrary taxation of foreigners.
Special Regulation 6.—Consular guarantees.
"Special Regulation 9.—Arbitrary powers of eviction.
"
Special Regulation 11.-Limitation of leases to five years; far too short a term.
**
Why not-
"1. Make the trade mart include the city of Yunnan-fu and a reasonable extent of country around -say two miles ?
"2. Let foreigners lease land perpetually there? (In England. Chinese are even allowed to buy land anywhere, on the same terms as British subjects.)
3. Abandon all special rules and regulations applicable to foreigners ? (Ssumao, which is opened by treaty, has no concession or settlement, and foreigners can have their houses anywhere there.) "
3
now in receipt of a despatch from Mr. Max Müller, informing me that the regulations in question are quite unacceptable as they stand, and instructing me to enter a formal protest against them.
(No. 38.) Sir,
I have, &c.
P. E. O'BRIEN-BUTLER.
Enclosure 3 in No. 1.
Consul-General O'Brien-Butler to Mr. Max Müller.
Yünnau-fu, October 19, 1910. IN continuation of my despatch No. 35 of the 10th October, I have the honour to forward to you herewith copy and translation of a reply, dated the 17th October, which I have received to my despatch to the Administrator of Foreign Affairs of the 24th September, protesting against the regulations for the Yuanan-fu trade mart.
I have, &c.
P. E. O'BRIEN-BUTLER.
Enclosure 4 in No. 1.
Administrator of Foreign Affairs to Consul-General O'Brien-Butler.
Foreign Office. Yünnan-fu, H. T., 2nd year,
(Translation.) Sir,
9th month, 15th day (October 17, 1910). I HAVE the honour to acknowledge receipt of your despatch of the 24th September, to the effect that you have sent a copy of the regulations for the trade mart at Yunnan-fu to His Britannic Majesty's chargé d'affaires at Peking, and that
have received a reply stating that the regulations in question are unacceptable. you
Being actually in the interior, Yunnan-fu is, according to treaty, a place where foreigners are not allowed to reside and trade. As the railway has come to this city and there will be more merchants here than formerly, a place has been set apart and marked out specially for their residence. Regulations for this place have been drawn up, and the matter has been carefully arranged so as to afford both convenience and advantage. This is really an unusual permission, and so the regulations have been simply brought to your notice, there being no necessity of obtaining your acceptance before they become valid; it is to be known that if the regulations are accepted merchants and other people can come and reside in the mart, and that if they are not accepted there will be no such possibility, and affairs must still be managed as in the interior.
Having received your despatch, I hasten to state that Yunnan-fu is really in the interior, and that both parties have to act according to the rules for the interior mentioned in the treaty.
I have, &c. (Seal of Shih, Administrator of Foreign Affairs.)
I have, &c.
P. E. O'BRIEN-BUTLER.
Enclosure 2 in No. 1.
Sir,
Consul-General O'Brien-Buller to Administrator of Foreign Affairs.
Yunnan-fu, September 21, 1910.
I HAVE the honour to inform you that I duly sent a copy of the regulations for the trade mart at Yunnan-fu which accompanied your despatch to me of the 30th April to His Britannic Majesty's chargé d'affaires at Peking, and that I am
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