CO129-382 - Public Offices - 1911 — Page 507

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[This Document is the Property of His Britannic Majesty's Government.] 505

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AFFAIRS OF CHINA..

CONFIDENTIAL.

C O 0654

ECP

PEGE 17 MAR-H

[March 1.]

SECTION 1.

[7576]

(No. 50.) Sir,

No. 1.

Sir G. Buchanan to Sir Edward Grey.-(Received March 1.)

St. Petersburgh, February 25, 1911. WITH reference to my despatch No. 48 of the 22nd February, I have the honour to report that the "Official Messenger" of yesterday's date published the following text of the reply of the Chinese Government to the Russian note. reply was handed to the Russian Minister on the 20th February :--

The

"I have had the honour to acquaint myself with the contents of your Excellency's communication dated the 3rd (16th) February of this year, and I deem it my duty to present below my replies to all the points set forth therein.

"1. Within the limits of a 50-verst zone on either side of the frontier of both States there has been mutually established the free import of products of the whole territory of the other contracting party. This procedure, in accordance with treaties, has been observed for many years. As regards the assertion respecting the restriction of the rights of the Russian Government to establish independently tariffs along the Russo-Chinese frontier, with the exception of the 50-verst zone, I am unable to make it clear to myself to what this assertion has particular reference, and I permit myself to suppose that it is in connection with a communication of the Ministry under my charge dated the 22nd December, 1909, in which I, on the basis of a petition of Chinese merchants, requested the Russian Government that it should take into consideration commercial interests and defer the collection of customs as a token of friendly relationship. This request was complied with by the Russian Government, and should not be erroneously interpreted as a restriction of rights.

"2. The method of dealing with cases between Chinese and Russian subjects is laid down by article 11 of the treaty of 1881, and has been practised for many years. The Ministry under my charge has never protested against it.

"3. In accordance with article 12 of the treaty, Russian subjects have the temporary right of free trading in every part of Manchuria, and also in Ili, Tarbagatai, Kashgar, Urumtsi, and, in general, in the provinces outside the great wall of China lying on either side of the Thian Shan range. This right will be repealed when the development of trade necessitates the institution of a customs tariff, respecting which both Governments will enter into an agreement. The enactment of the treaty that Russian subjects shall receive in all the specified parts of China the right to carry on import and export trade is laid dowu in clear and precise terms, and has always been strictly observed by China.

4. Article 10 of the treaty provides for the establishment of Russian consulates in Kobdo, Khani, and Guchen as trade developes, and by agreement with the Chinese Government. A careful enquiry into the present conditions existing at the points named testifies to a real development of trade there, and the Chinese Government willingly expresses its assent to the appointment at the three places specified of Russian consuls on condition, however, that the enactments of article 12 of the treaty are observed with regard to the development of trade, viz., the introduction of a customs tariff.

"5. In accordance with article 11 of the treaty of 1881, the procedure which must be observed during interviews and regulations in general between the Chinese local authorities and Russian consuls, must be based on the courtesies which officials of friendly Powers are bound to show to each other. In view of the expressed desire for the recognition of Russian consuls in their official capacity, I see no objection to the mutual drawing up of a system of communication between them based on existing general enactments. The combined consideration by Russian and Chinese authorities of law-suits must be conducted entirely on the basis of the enactments of article 11 of the treaty of 1881, and the local authorities will again be instructed as to the necessity of giving especial attention to this point.

[1918 a-1]