CO129-382 - Public Offices - 1911 — Page 351

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

349

CO

AFFAIRS OF CHINA.

CONFIDENTIAL.

[1780]

No. 1.

5712

January 16!]

SECTION 5.

Feu

of 21 FB P

Sir C. MacDonald to Sir Edward Grey.-(Received January 16, 1911.)

(No. 280. Confidential.) Sir,

Tokyo, December 26, 1910. WITH reference to my despatch No. 230 of the 21st October last on the subject of the frequent allegations of customs irregularities at Dairen and of the consequent smuggling of goods into Manchuria through the leased territory, I have the honour to report that, with the object of correcting any possible evils and removing any further suspicion, Mr. Tachibana, the commissioner of customs at that port, recently put forward a scheme to abolish the free area and to bring Dairen, with certain modifica- tions, into line with Kiao-chau as regards the customs. The British acting consul at Dairen, in commenting on the proposal, attributed its origin to the advice given by Herr Dernburg, the ex-German Colonial Secretary, during his visit in the autumn to that district.

In recommending the proposal to the Inspector-General of the Imperial Maritime Customs of China, who is said to be giving it his support, Mr. Tachibana showed that the Chinese Government would benefit thereby by increased revenue and a much firmer control of cargo at Dairen, while at the same time advantage would accrue to the Japanese Government in that 20 per cent. of this revenue would be handed over to them. Also he pointed out that the commercial future of the port was so well assured that there need be no fear of a falling off of the import trade in consequence of the change.

On these grounds, and in view of the support which he had obtained for the scheme in influential circles both locally and in Tokyo, Mr. Tachibana did not anticipate much opposition from Kwantung and the central Government, and hoped that it would not be long before the scheme was put in motion through the Japanese Minister in Peking.

I now learn from the acting British consul at Dairen that Mr. Shirani, the civil administrator at Port Arthur, who has recently returned to his post from Tokyo, is apparently strongly in favour of the change and is preparing a memorandum on the question for submission to the central Government. An official of the Kwantung Government is also to be detailed for special duty to investigate and report on the customs arrangements at Kiao-chan in regard to their suitability, with necessary modifications, for Dairen.

I have the honour to enclose a copy of Mr. Horne's despatch No. 90 of the 21st instant on the subject, copy of which, together with my covering despatch, has been forwarded to His Majesty's Minister at Peking.

I have, &c.

CLAUDE M. MACDONALD,

Enclosure in No. 1.

Acting Consul Horne to Sir C. MacDonald,

(No. 90. Confidential.) Sir,

Dairen, December 21, 1910. WITH reference to my despatch No. 76. Confidential, of the 21st October last on the subject of the abolition of the free area, I have the honour to report that the scheme is progressing favourably from the customs point of view. Mr. Shirani, the civil administrator at Port Arthur, who has recently returned from Tokyo, is apparently strongly in favour of the change and is preparing a memorandum on the question for submission to the central Government. In this connection an official of the Kwantung Government is to be detailed for special duty to investigate and report on the customs arrangements at Kiao-chau, having regard to their suitability, with necessary modifications, for Dairen.

[1850 q--5]