CO129-421 - Governor Sir May - 1915 [3-4] — Page 441

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seriously affecting British interests in China. If this is the view

of His Majesty's Government, we consider it the more necessary to give expression to our views on this very important matter.

Turning to the draft Agreement I will now deal with

the various articles seriatin, showing in what manner the Committee

of the Chamber consider they conflict with our trading interestea as

ensured by the "most favoured nation" clause in our treaty with

China.

Section 1. Article I. The special right and privileg -es wrung from China by Germany so far as the province of Shantung was concerned were in many directions opposed to the treaty rights

of other Powers and should not in equity be extended to Japan, but

we realise that this may be a difficult question to raise in view

of existing conditions and the manner in which the Government of Great Britain and Japan are at the present associated. It must be overlooked that Great Britain had a considerable share in the

reduction of Tsingtau by the assistance of both her Navy and Army.

Article II. The insertion of the word "Third" in

not

the last line of this article raises the unpleasant doubt as to

whether, while China may not cade, or lease, territory to another Treaty Power, she may do so to Japan. This word therefore should be deleted, as we are of opinion it opens a very wide door to Japanese preferential treatment in China.

Article III. The right for the Japanese Government,

of Government Nominees to construct this railway is a direct in-

-fringement of the doctrine of the "open door" and if granted will, in conjunction with Article I, mean the handing over of the foreign

trade of one of the richest provinces of China to the Japanese.

Article IV. Should China decided upon opening now

Treaty Ports, this should be done of her own initiative, or in

general consultation with the representatives of all the Treaty

Powers. Should Japan be alone consulted, it is reasonable to suppose she will taken advaltags of the situation and arrange that she acquires the greater benefit of the new port to the detriment

of other nationalities.