CO129-383 - Public Offices - 1911 — Page 282

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brigand, Tsao Lo by name, who was constantly acting in a very lawless way. The district in question bordered on Che Fang and An Pau, and consequently he had many adherents. The Chinese officials were therefore requested to co-operate in effecting his arrest and preventing his hiding in Chinese territory and disturbing the country. The taotai accordingly instructed the Lung Ling ting to order the native chiefs to co-operate in effecting his arrest. This is on record. On the 11th March the Tengyueh taotai received a further communication from His Majesty's consul in regard to a telegram from the I Pei taotai to the effect that Tsao Lo, in company with a baud of 200 and more men from Che Fang, had burnt the village of Peng Sheng, in Po Wang, and that he, the taotai, had ordered the Kuei Kai ting to proceed thither to quell the disturbance. The matter being of importance, it was requested that the Chinese officials should be communicated with.

"I have the honour to observe that robberies occur frequently on the frontier, and in the past it has been the custom to refer them to the winter frontier meeting to be dealt with. As regards the present case of the bandit chief Tsao Lo, implicating our frontier tribes and stirring up troubles, I have ordered the taotai in question to appoint officers to proceed to the spot and investigate the case in company with the Knei Kai ting."

As the Viceroy states in his telegram, this is a case of bandits in Burmese juris- diction conspiring with Chinese bandits and stirring up trouble, and he has sent officers to investigate the matter jointly.

I will communicate any further telegrams on this subject, and in the meantime I have the honour to address this note for your Excellency's information.

I avail, &c.

Prince CHING.

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

MAKANAN DENEY CARTE

AFFAIRS OF CHINA.

CONFIDENTIAL.

[13850]

No. 1.

Papers communicated by Mr Addis, April 11, 1911.

(1.)

[April 11.]

SECTION 1.

Copy of Telegram from Messrs. Morgan, Grenfell, and Co., London, to Messrs. J. P. Morgan and Co., New York, April 10, 1911.

PLEASE transmit by cable to Straight following reply his telegram to you 4th April and his telegram Morgan, Grenfell, and Co., 7th April, which has been agreed to by European banks and by us on your behalf :--

"Refer to your cable 4th April. Banks agree to alter articles S and 15 as suggested.

"Refer to your cable of 7th April to Morgan, Grenfell, and Co. Have no objection procedure suggested with regard to commutation.

"Boxer indemnity proposals refused, as banks unanimously opinion very undesirable complicate loan agreement by introduction any stipulation whatever with regard to Boxer indemnity. Any proposals with regard to service of indemnity must be concluded with the banks quite independent of currency loau, which it has nothing to do with.

"Draft agreement, article 5, section 4. If possible insert between due date' and then or if there be any breach of currency programme conditions as approved by banks.'

Confirm by telegram that you have obtained all other conditions agreed at conference which we cabled you 20th March.”

(2.)

Dear Sirs,

Mr. Addis to Messrs. Morgan, Grenfell, and Co.

April 8, 1911. I HAVE your letters of the 6th and 7th instant, enclosing our Peking repre- sentative's joint telegrams (two) of the same dates. In my opinion, article 8, section 2 provides inferentially the right to withhold the issue in the event of the currency programme not being approved. I think, therefore, we might agree to the Chinese proposal to omit the provision for cancellation of agreement contained in article 15.

I should also be prepared to agree to the procedure suggested of an exchange of letters, as sufficient authority for the deduction of the 1 per cent. commission referred to in article 16.

With regard to the second point raised by the Chinese, it is, in my opinion, very undesirable to complicate still further the loan agreement by the introduction of any stipulation whatever with regard to the Boxer indemnity. The Chinese must be aware that the exchange banks are always ready to arrange on reasonable terms for the payment in gold of the Boxer indemnity out of the funds lying to the credit of the Chinese Government in London. Any such arrangement in connection with the currency loan would, however, be irrelevant, and should be concluded quite independently of its conditions. I am of the opinion, therefore, that the Chinese proposal with regard to the Boxer indemnity payments should be resisted.

I notice with satisfaction that the four groups have now agreed provisionally to nominate Dr. Wissering as Financial Adviser, and that steps are now being taken to ascertain unofficially if he would be willing to accept the nomination in principle.

Yours faithfully,

C. S. ADDIS.

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