the Place, representative of the Consular Body, representative of the foreign merchants, representative of the Chinese Guilds, Commissioner of Customs, and Sanitary Inspector. || Article 3 gives the Civil Administrator the right to issue bye-laws, impose poll taxes and duties on the natives; dispose of the real and movable estates belonging to the Chinese Government; confirm the expenditure of funds assigned or received for maintaining the Administration and for the municipal expenses, and enter into relations with the foreign representatives. || Article 6 provided that the „Chinese Maritime Customs coming under the supervision of the Imperial Russian Government will maintain its previous organization. The rights of the staff as regards their service and salary remain without change. As in the meantime the Russian Government is responsible for the Customs revenue, it will be represented in the Customs service by appointing a co-Commissioner, whose rights will be regulated by special orders. In the Maritime Customs is established a special Chinese Department, to collect duties from the Chinese junks and merchandise, which income does not go to the general Customs revenue, but is to be held at the disposal of the Civil Administration". || The Yingkow terminus of the Shanhaikwan Railway was seized by the Russian force on the 6th October, and the Russian flag hoisted over the buildings. In reply to a query from Mr. Fulford as to the reason for this action, and the intentions of the Russian authorities as to the line and the railway property, M. Ostroverkhov, the Civil Administrator, replied on the 9th October that the terminus was occupied under instructions received from the high Russian military authorities, and that he presumed this order was given in connection with the general plan adopted for preventing the destruction of this railway by the rebels. M. Ostroverkhov added that as to the material stored on the north bank of the river, strict orders had been given to guard the same intact until the settlement of the whole question". On the 13th September, M. Ostroverkhov invited the foreign Consuls, consisting of the British, Japanese, and Russian Consuls, and the ViceConsul for the United States (in charge of German and Swedish and Norwegian interests), to inform him who was their Representative on the Council, in accordance with Article 2 of the Regulations for the Provisional Civil Administration of Newchwang. The reply of the Japane Consul (the senior Consul) of the 14th September stated that the Consuls had not elected a Representative, pending receipt of instructions from their respective Governments on the matter. In a further letter from the Consuls to the Russian Civil Administrator of the 19th September, it is stated that the Consuls were ready, while awaiting instructions from their

Governments, to give their opinion or advice on any matter on which they might be consulted by M. Ostroverkhov. || From this time the Government of the Treaty port remained in the hands of the Russian Civil Administrator. || On the 31st January an additional Agreement" was concluded at Port Arthur between the Russian Commander-in-chief and the Chinese Military Governor, of which Articles Nos. 1 and 2 ran as follows: „Article 1. All official residences in Mukden to be handed back to the Chinese officials, who will act in accordance with the terms arranged. | Article 2. Chinese official to be allowed to go to their posts in all those towns taken by the Russians. They may establish police forces in large places to the number of 500 men, in medium-sized places to the number of 300 men, in others 200. These police may carry arms, but must be provided with distinguishing badges stamped by the Russian and Chinese authorities." || On the 4th April Mr. Consul Fulford reported that the Manchu Governor-General of Mukden, Tseng-Chi, was again in exercise of authority in the province to a certain extent. Magistrates had returned to the towns occupied by the Russians, and had in some places been allowed to organize police forces, while at others the Russian police were still at work. The restoration of Chinese jurisdiction was apparently being gradually permitted. || To the Treaty port, however, no Chinese officials had returned. || Concerning the customs dues, it was arranged by the Agreement of the 31st January between Russia and China (see above) in Article 4, that the Yingkow customs duties and li-kin are to be collected temporarily by Russia, and the Imperial commands awaited as to application of such funds after a Treaty has been made between Russia and China. All other sources of revenue are to be under the control of the Military Governor, Mr. Fulford, in his despatch of the 4th April, reported that the Russians had a large staff at the west end of the town, for dealing with the junk trade. The Russians had, however, permitted the Governor-General to send two deputies to supervise the salt li-kin of the sea-coast salt distilleries near Yingkow. || As regards the general question of Imperial Maritime Customs at Newchwang, an arrangement had been concluded between Admiral Alexeieff and Mr. Bredon, Deputy Inspector-General of Customs, and approved by Sir Robert Hart. || Soon after the occupation of Newchwang, the Russians appointed Dr. Daly, the British doctor of the port, to be Sanitary Inspector, and Mr. Dunn, a British subject and engineer on the Chinese Railway, to be his assistent. The expenses of the Department were met by levies on the Guilds of the town. || Dr. Daly has, during the last year, taken a prominent part in all discussions of a municipal nature. It soon became apparent that the

system of voluntary subscriptions was no longer adequate, and a scheme of municipal administration was proposed at a meeting of subscribers on the 7th March, by which expenses were to be met by a tax of one per mille on trade, and taxation of foreign house rents and land. || The Representatives of Treaty Powers at Peking were to be asked for sanction as regards foreigners and the Russian Administration for sanction as regards Chinese. The Consular Body (with the exception of the Russian) opposed the scheme which provided that the Russian Civil Administrator should be Chairman of the Committee of Management, Dr. Daly being the chief advocate. || At an adjourned meeting Resolutions were passed in favour of the scheme, the question of Chairmanship being omitted. The Committee, consisting of Mr. H. A. Bush (of Bush Brothers, agents for Messrs. Jardine, Matheson, and Co.); Mr. F. C. McCallum (agent of the Russo-Chinese Bank); and Mr. C. McCaslin (agent of the American Trading Company), addressed a letter to the doyen of the Diplomatic Corps at Peking on the 18th March last, asking for the approval of the foreign Ministers for working out the scheme in detail, upon the basis of the Land Regulations existing in other Treaty ports. The Resolutions passed at the meeting of foreign residents and inclosed in a letter to the doyen were as follows: || 1. That there is urgent need for municipal work in the foreign Settlement, the questions of bunding, good main roads, footpaths, dust, drainage, and water supply being of great importance to the welfare and comfort of the community. || 2. That the present system of Committee is inadequate to the size and needs of the port, the Committee having neither funds nor powers sufficient for the work which, moreover, no one is willing to undertake. || 3. That the growth of trade and the increase in number of foreign residents during the past few years render it possible and necessary that some scheme should be devised for the regular taxation of trade, and of property - owners and householders, whereby funds may be derived. || 4. That, therefore, the Road Fund be now wound up, and the balance in hand and the archives of the funds. be placed in the hands of the senior Consul. || 5. That the senior Consul, in consultation with his colleagues, be requested to move his and their Ministers to consent to a tax of one per mille being put on all imports and exports dealt with by his and their nationals. || 6. That the Provisional Government be requested to proclaim a like tax upon all imports and exports dealt with by Chinese, such tax to be collected by the Commissioners of Foreign and Native Customs on steamers and junks respectively, the fund bearing its own cost by collection. || 7. That the Consular Body be also requested to move the Ministers to consent to the taxation

Staatsarchiv LXIX.

5

of foreign property-owners and householders for municipal purposes. || 8. That the funds derived from the above sources be devoted entirely to municipal improvements. || 9. That the funds be administered by a Municipal or Town Council, consisting of three foreign and three Chinese gentlemen, appointed by the foreign and Chinese Committees respectively. || 10. That a copy of these Resolutions be sent to the senior Consul and the Civil Administrator. || In commenting upon these Resolutions, Mr. Fulford greatly doubted whether the Russian Administration would consent to hand over the Municipal Government of the town to a Committee composed as stated in Resolution No. 9. He explained the action of the foreign residents as a desire to obtain municipal improvement in any form, in which he himself expressed no concurrence. | A further move was made by the British community at Newchwang in June last. A letter, signed by Messrs. Bush, Messrs. Butterfield and Swire, and Mr. E. H. Rigby, Resident Engineer of the Chinese Railway, and M. Van Eos, was addressed to Sir E. Satow, advocating the termination of the Russian occupation of the Treaty port. || In commenting upon this letter, Mr. Fulford stated that the Russians having handed over the government of all the other towns to the Chinese, the question of how long they are to retain control of Yingkow becomes a pressing one. || A further despatch from Mr. Fulford reported that recent actions of the Russians tended to confirm the opinion, previously expressed by him, that the Russians intended to retain the administration of the port as long as possible. The „,actions“ to which he alluded were a Proclamation in Chinese by the Russian Civil Administrator, informing the inhabitants of Yingkow that the annual expenditure on the port was to be defrayed by the shops, opium divans, boats, grain shops, and by subscription levied on carts and for bridges. || This was estimated to produce some 88 000 dollars. Extensive quarters for the Russian troops were being built adjacent to the Yingkow terminus of the Chinese Shanhaikwan-Newchwang Railway, the houses being constructed of railway sleepers which had been cut about and rendered useless for their original purpose. || Meanwhile the Manchu GovernorGeneral of Moukden was encouraged to borrow largely from the RussoChinese Bank to pay the current expenses of his administration, police, &c. || In his most recent accounts of the lawlessness of the province, Mr. Consul Hosie states that the force at the present disposal of the Tartar General of the whole province is limited by the Russian authorities to 6500 men, which means that over 10000 men possessing fire-arms have been let loose. The Chinese police force is insufficient to back the authority of the Governor-General, and constant military expeditions by the Russians

are consequently rendered necessary. || The present condition of affairs is, as will have been seen from the above records, that the Russians have now been for more than a twelvemonth in practically undisputed possession of the Treaty port. Their action with regard to the administration of the port, taxation, &c., have been described. The outward signs of Russian rule are every-where apparent. The Russian national flag flies over the forts and public buildings, the Russian Customs flag is hoisted on the Imperial Maritime Customs buildings and boats, and the Native Customs are administered by the Russians, assisted by a staff lent to them by Sir Robert Hart. || The Treaty port itself is now differentially treated to the rest of the Province of Manchuria. If the Russians considered the condition of the province sufficiently secure to permit the return of Chinese officials to their former duties, in accordance with Article 2 of the Additional Agreement of the 31st January (quoted above), is it not a matter for surprise that the Treaty port should alone be retained in the possession of their authorities? Particularly so in the light of the assurance given by Count Lamsdorff to Sir C. Scott on the 6th February last, „that the province would be restored to China when all the temporary measures taken by the Russian military authorities would cease, and everything at Newchwang and elsewhere replaced in its former position“. || The bulk of the direct trade of Newchwang is claimed by Japan, the United States, and Hong Kong, the first-named taking the premier place. Of the shipping in 1900, Japan had 320 vessels with a tonnage of 261 652 tons; Great Britain, 253 vessels with 242 757 tons. The United States' Government are now (September 1901) represented by a full Consul, Mr. Miller, at Newchwang. I have confined this Memorandum to the Treaty port of Newchwang alone, without reference to the Russian projects for a Convention with China respecting the Province of Manchuria. (Verfasser Reginald Tower.)

Nr. 13061. GROSSBRITANNIEN

Der Minister des Ausw. an den Gesandten in Peking. China soll die Initiative ergreifen, um wieder in Besitz der Zölle von Niutschwang zu kommen.

Foreign Office, November 5, 1901. (Telegraphic.) || I have received your despatch of the 7th September, and I agree that it is desirable that the Maritime and Native Customs revenues at Newchwang should now be restored to China with a view to their being applied, in accordance with the provisions of the Protocol, to