CO129-420 - Governor Sir May - 1915 [1-2] — Page 301

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Sir,

(To accompany No.53.)

H.B.M.Consul-Veneral, Canton, to H.E. Li Kuo Yun, Civil

Governor of Kwangtung.

H.B.M.Consulate-General,

Canton, 12th October, 1914.

297

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⚫ynteq

I have the honour to address you on the subject of the

claim of the Green Island Cement Company in respect of loss sustained

as a consequence of the action of Tutus Chen and Hu in placing, con-

trary to Treaty, an embargo on the export of limestone from Kuang-

tung. This claim, which amounts to 8512,378 has formed the subject

of voluminous correspondence, and has for three years past occupied

the serious attention of the Wai Chiao Pu and His Majesty's Legation.

Although, happily, the export has now been resumed and supplies are going forward, His Majesty's Minister has instructed me to endeavour

to arrive at a settlement of this matter with the Government of Kuangtung in a spirit of friendly accommodation, and it is with this object in view that I would submit, without prejudice to eventual pressure of the claim by His Majesty's Government, the following modus vivendi for your consideration.

I fully recognise that the embarrassed state of provincial finance renders a cash payment difficult, and therefore other meana

of satisfaction have to be discovered. On the 19th of May last I suggested to Lung Tutu that the Company should be supplied with lime- stone from the Government quarry at Fei Shu Yen gratis up to the equivalent in value of the amount claimed, and I now put forward this suggestion afresh. The quarry is I believe capable of furnishing both the Green Island and the Canton cement factories with ample supplies of stone and the enhanced cost of transport and payment of export duty would leave the latter with an initial advantage as against their competitors in the cost of raw material. It must not be forgotten that this quarry with its plant, light railway, &c.

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