CO129-383 - Public Offices - 1911 — Page 148

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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have no objection to acceptance of Scott's line east of Wa country, lieutenant-governor does not think that repetition of offer of that line, or reopening question of position of boundary pillars, would assist negotiations. All that is contained in the draft convention attached to the report by Mr. Litton is a description of the watershed, together with an agreement by which compensation for extinction of Chinese claims to If an dues from villages on the Burmah side was to be paid by British Government. amicable settlement would be effected thereby, lieutenant-governor would, in view of information furnished by Hertz, admit claim of Chinese to the Kang-fang and Hpimaw groups of villages. Chinese claims to Htawgaw or other villages in disputed aren are not, his honour believes, likely to be pressed. Negotiations should, the lieutenant- governor urges, be on the basis of regarding watershed as general boundary, and empowering a joint commission to rectify it by the inclusion of frontier tract adjacent to watershed, over which effective control is shown to have been exercised by the Chinese in the past, on the Chinese side of the frontier. Any line of modifications (?) in boundary west of watershed is deprecated by lieutenant-governor, as position taken by us all along would thereby be surrendered and trouble would be caused in the future. There would be no objection, in his honour's opinion, to any territory over which Chinese are shown to have exercised effective control, being leased from Chinese. I would concur generally in views of lieutenant-governor, if Chinese Government are willing to accept watershed as the basis of negotiation. Question of further compensation does not arise if settlement can be effected by recognition of claim of Chinese to Kang-fang and Hpimaw villages. But if offer of compensation is necessary hereafter, compensation on section between Namting River and Nalawt is, in my opinion, open to no prima facie objection. But Burmah Government is being consulted on this point.

(Repeated to Peking.)

[B]

AFFAIRS OF CHINA.

CONFIDENTIAL.

[8049]

No. 1.

[March 6,]

SECTION 3.

Sir E. Goschen to Sir Edward Grey.-(Received March 6.)

(No. 50.) Sir,

Berlin, March 1, 1911. WITH reference to my telegram No. 7 of yesterday's date, I have the honour to transmit herewith translation of a memorandun drawn up by the Imperial Foreign Office expressing the agreement of the Imperial Government in the points set forth in the memorandum of the State Department respecting the treatment of the question of the Chinese loan by Great Britain, France, Germany, and the United States of America.

I have, &c.

W. E. GOSCHEN.

Enclosure in No. 1.

(Telegraphic.) P.

Enclosure 2 in No. 1.

Government of India to the Earl of Crewe.

February 22, 1911. MY telegram, dated the 19th instant, as to Hpimaw expedition. Compromise on Namting-Nalawt section might, Burmah Government consider, be offered on the terms proposed in Viceroy's telegram of the 22nd March, 1907, to Secretary of State, provided all claim to territory on northern frontier west of watershed is waived by China. Lieutenant-governor would, however, much prefer that northern boundary should not be rectified, and that, provided acceptance of watershed as general boundary is agreed to by China, any tract on British side of watershed over which effective control is proved to have been exercised by Chinese, should be leased by us from them. Lieutenant-governor's views and those advanced in my telegram of the 19th instant are practically identical. In event of compromise being necessary on Namting-Nalawt section, negotiating officer might be left to decide details, which might be either line suggested in letter of the 18th October, 1907, from India Office to Foreign Office, or terms proposed in above-quoted telegram from Government of India.

(Repeated to Peking.)|

Memorandum communicated to Sir E. Goschen by German Foreign Office.

(Translation.)

THE communication of the United States Government mentioned in the British Embassy's aide-memoire of the 13th instant, on the subject of the Chinese loan, has now also reached the Imperial Government through the German Embassy in Washington.

The Imperial Government can only express themselves in agreement with the points of view set forth in the memorandum of the State Department for a common treatment of this question by Great Britain, France, the United States of America, and Germany. They have in particular no objection to a statement being made to the Chinese Government by the four Powers interested, in accordance with the American proposal, that they will not support the raising of loans for China either directly or indirectly so long as China has not guaranteed an adequate control of the expenditure.

The Imperial Government therefore also agree to the suggestion to appoint, now while the present loan negotiations are impending, four auditors from among the nationals of the States interested, to supervise the spending of the money. They also would recommend that these auditors should be appointed not only for one part, but for the whole amount of the loan. The Chinese Government has also agreed to a corresponding arrangement in the Tientsin-Pukow Railway Convention, which answers very well in practice.

The Imperial German Embassy in Washington has been instructed to reply to the memorandum of the United States Government in the above sense.

Berlin, February 27, 1911.

[1918 -3]

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