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the proposed line westwards from Tsinanfu; and, if so, whether this will enable Germany to extend her sphere of influence beyond Shantung, to which she has hitherto been confined by the Kiaochau Convention?
The Secretary of State for Foreign Affairs (Sir Edward Grey): The answer is in the affirmative. I cannot say whether the extension will have the effect suggested, but in any case it is a matter which concerns the German and Chinese Governments, and I am not aware that there is any Conven- tion that debars Germany from obtaining a railway concession outside Shantung.
Tuesday, 7th July, 1914.
SHANGHAI SETTLEMENT
EXTENSION.
Mr. Theodora Taylor asked whether there have been negotiations between China and ourselves and other Powers for the addition to the leased territory known as the International Settlement of Shanghai of the district known as Chapei; and, if so, what consideration in return is being offered to China?
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Sir E. Grey There is no leased terri- tory at Shanghai, but for many years past friction has been caused between the Chinese and foreign authorities by the conflict of jurisdictions arising out of the natural development of the International Settlement at that port- In September, 1912, the diplomatic body at Peking were requested by the Chinese Government to arrange for the negotiation locally of a clear demarcation of i the boundaries between the Chinese and foreign areas with a view to effecting a permanent settlement of the questions at issue. No effect was given by the Chinese
authorities at Shanghai to this request until the end of last year, when the subject was Beyond some friendly ex- again raised. change of views, no formal negotiations have, however, taken place as yet.
Friday, 10th July, 1914.
RAILWAY CONCESSIONS, BRITISH
GOVERNMENT POLICY. Extract from Speech made by Mr. GEORGE LLOYD
I have reviewed what we have not gained in the Middle East. Now let us come to the Far East. Whilst the position there is not quite so serious, I think there is still ground for a great deal of anxiety and criticism. We bave seen, in the last few years, the whole of Manchuria and China being opened up to foreign railway enter- prise. With the big advantages of pro- duction which this country is alleged to possess in virtue of its free markets and its purchasing facilities, with low paid labour and predominant transport facilities, one would have thought the right hon. gentleman would have a far easier task than anyone else who is seeking to get commercial concessions out of the Chinese Government. We put practically no duties on Chinese exports. We have treated China in every way both as regards opium, and in other ways with peculiar generosity and fairness. That cannot be said of other nations to the same extent in dealing with China. There- fore the Foreign Secretary ought to have an advantage in negotiation, and to have had a You would have singular in quotation. thought that the combination was irresistible, and we ought to have swept the board. The fact is not so. Other nations, handicapped as everyone on that side of the House will
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admit they are by a system which makes it more difficult for them to compete with us in the acquisition of these con- cessions in railway considerations and the production of staple material, and with the perpetual reproach which China made against them. "You treat our exports with a huge tariff and do not give us any chance" -you would not have thought that any other nation could have stood a chance with us in negotiations for what was going in China. Take areas in China-I exclude Manchuria and Shantung, where in one case Russia, and in the other Germany has admittedly a special position.
Take even our own areas where we admittedly bave special claims which are ad- mitted by other countries, such as the Yangtsze Valley. It will be remembered by everyone that in 1905 there was concluded a simple agreement to which the Foreign Office was a witness; it took note of the agreement. It was an agreement literally with the Hongkong and Shanghai Bank, by which it was admitted by our trade rivals in those areas that in return for keeping out of certain areas in China we were to be put in a privileged position in the Yangtze Valley for the purpose of expansion and other matters. As regards commerce, there was to be a special field for British enterprise. There is no doubt about that. It was a perfectly clear agreement, and it seems to me that, as the Foreign Office was a witness to it, it was the duty of the Foreign Office to see that the Yangisze Valley Agreement was respected by That the parties who put their hands to it. is common sense, and it is obvious to every- body. The point is: Did the Foreign Office see that the Yangtsze Agreement, in return for the self-denying ordinances we entered into in regard to other matters in China, was
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observed by the other parties? I think it is clearly shown that the agreement was not observed.
That is regretable, and it is ground for criticism. The Foreign Office seem to have made no effective protest as regards the Yangtsze Valley, or, if any steps were actually taken, none of them have been really effective. Of course, it is not a question of debate at all. According to the agreement the Germans were given the right in the Yangtsze Valley to build the lchang under Lautiokow Railway, and it is now construction. Russians and Belgians equally have the right to come down the Yangtsze Valley to Chiengtu, and the French, who are not concerned at this particular moment, have yet got, as hon. gentleman may re- member, rights to build a railway from Haiphong to Yunnan. The French, in addi- tion, have now got a concession to build a railway from Yunnan to Chiang King, which is beginning to be of great interest in Burma, The railway from Haiphong to Yunnan is a very important line indeed. They, therefore, go into the Yangtsze Valley by a prolongation of the railway. In regard to the latter line- though of this I am not sure, not being in a position to know. I believe we made a Treaty in 1896 by which we were to share with the French the railway rights in If that is the case, Yunnan and Shantung. and if in virtue of that agreement we do so share these railway rights, I wish to know whether or not the Foreign Office has pro- tested as regards the acquisition of France of treaty rights in which we ought to share. If we do not share them, what have you got for the position which France has made for herself in that area?
Extract from Speech made by Sir J. D. REES. I am afraid I must adhere to my view, notwithstanding what the hon. gentleman
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