2
[This Document is the Property of His Britannic Majesty's Government.
Sir,
Enclosure 3 in No. 1.
Mr. Max Müller to Acting Governor Sir F. May.
Peking, May 18, 1910. I HAVE the honour to acknowledge the receipt of your letter of the 4th May enquiring whether privileges similar to those conceded under articles 5 and 4 of the additional convention of commerce between France and China, signed at Peking on the 26th June, 1887, were claimed by Russia, Japan, and Germany in the north of China under the most-favoured-nation clause, and, if so, whether the similar privileges could be claimed for the colony of Hong Kong.
The land trade between Russian and Chinese territory is conducted under agree- ments which provide for privileges similar to those mentioned in your letter, just as in the case of Yunnan and Burmah, but I am not aware that Germany or Japan have obtained any reduction of duties in respect of trade between Chinese territory and the leased territories in Shantung and Manchuria, or between China and Corea. I understand that Japan is endeavouring to arrange similar privileges regarding the land trade between Corea and Manchuria, but if they are conceded I judge that they will be enjoyed in virtue of special agreements, as in the cases of Russia, Tonquin, and Burmah, and not by reason of the most-favoured-nation clauses of the treaties.
1 have, &c.
W. G. MAX MÜLLER.
AFFAIRS OF CHINA.
CONFIDENTIAL.
[26525]
Sir,
No. 1.
1.
[August 19.]
3447
SECTION 2.
Foreign Office to Colonial Office.
I AM directed by Secretary Sir E. Grey to acknowledge the receipt of your letter
Foreign Office, August 19, 1910. of the 21st ultimo, enclosing a copy of a despatch from the officer administering the Government of Hong Kong enquiring whether the colony is entitled to claim, under the most-favoured-nation clause, the benefit of privileges similar to those conferred upon France by the additional convention of commerce between France and China dated the 26th June, 1887.
I am to forward to you a copy of a memorandum prepared in this department which explains the treaty aspect of the question, and from which you will observe that privileges of a similar nature are enjoyed by Great Britain in respect of the trade across the Burmah-China frontier, and by Russia in respect of the trade by land between her Asiatic possessions and China.
As far as Sir E. Grey is aware, neither Germany nor Japan has yet claimed such privileges under the most-favoured-nation clause in respect of the leased territories in Shantung and Manchuria respectively, and until such a claim is put forward ón behalf of one of these Powers, Sir E. Grey considers it inadvisable to raise the point in the case of Hong Kong,
Copies of the correspondence will, however, be sent to His Majesty's chargé d'affaires at Peking, who will be requested to report if any concessions are made in the future to either of these Powers.
am, &c.
I
W. LANGLEY.
Enclosure in No. 1.
Memorandum by Mr. de Bernhardt,
ON the 9th June, 1885, a treaty of peace, friendship, and commerce was concluded at Tien-tsin between France and China, in which it was stipulated: that passports should be issued to French and other residents in Tonquin to enable them to cross the frontier into China, and to Chinese to enable them to cross the frontier into Tonquin (article 4); that frontier trade should be permitted to French citizens, at certain points to be afterwards determined, where French merchants should have liberty to establish themselves on the same conditions as at the open ports; that the conditions of the frontier trade should be laid down in a special regulation to be annexed to the treaty, and that the duties payable on merchandise crossing the frontier should be inferior to those levied under the actual tariff applicable to foreign commerce, but that these duties should not apply to trade across the frontier from Tonquin to Kwang-Tong, nor to the ports already opened by treaty (article 6).
The Colonial Office, having been asked for their views on the subject of this treaty, replied that they saw nothing in it which appeared to conflict with treaty engagements of China towards Great Britain (the 18th July, 1885).
Mr. O'Conor, Her Majesty's Minister at Peking, touched upon this subject during the negotiations of the treaty, when the Chinese Government informed him that the reduction of duty was confined to the frontier trade between Tonquin and the provinces of Yunnan and Kwang-si; that the tariff would be a land trade tariff, higher than the Russian tariff, but lower than the maritime tariff; and that it would not injuriously affect other Powers, adding that other foreign imports would be allowed to enter China across the same frontier on a similar rate of duty. Mr. O'Conor replied that if British maritime imports were placed generally at a disadvantage we
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