Foreign Relations of the United States, 1901, Appendix, Affairs in China, Report of William W. Rockhill, Late Commissioner to China, with Accompanying Documents

Mr. Rockhill to Mr. Hay.

No. 130.]

Commissioner of the United States to China,
Peking, China, July 8, 1901.

Sir: I have the honor to transmit herewith, for the information of the Department, certain correspondence concerning the further improvement of the water approaches to Tientsin. This matter was first brought to the attention of the Department by Mr. Denby in his dispatch No. 2715, of March 19, 1897. The greater part of the works undertaken in 1898 were destroyed during the troubles of last year, but the benefits derived from them by Tientsin, and the possibility of improving the approaches to that city so that steamships might come up to it, as they did prior to 1886, have encouraged the foreign community to hope that by promptly and energetically prosecuting the works already begun the desired results might be readily obtained. Inelosures 1, 4, and 15 give a concise history of what has been done in the past and what it is now proposed to do.

In 1898 it was agreed by the foreign community to contribute, as its proportion of the fund necessary for the conservancy works, a municipal or river tax of 1 per cent on all duties payable on merchandise landed, and a loan of 150,000 taels at 6 per cent was contracted on that security. The chamber of commerce of Tientsin, in its communication of March 2 to the consular corps (inclosure No. 3), now suggests that this river due be doubled, and that the period of collection be extended to the year 1925. It is estimated that this tax will yield about 42,000 taels per annum, which sum will be sufficient for the payment of the interest and amortization on the 1898 loan which is to be extinguished in 1909, and of which 130,000 taels remain outstanding; also for the new 7 per cent loan of 300,000 taels which it is proposed to contract.

The total cost of the works to be executed is roughly estimated at 500,000 taels. The Provisional Government of Tientsin will temporarily contribute a monthly subsidy of 5,000 taels for current expenses until the loan can be made, and are willing to assume one-half the expenses of the work to be undertaken. The new committee for the preservation and navigation of the Peiho was, after some discussion between the diplomatic and consular corps on one side and the foreign military authorities on the other, finally organized, and on June 11 commenced the discharge of its duties. (Inclosure No. 11.)

The proposal of the chamber of commerce, that the river due should be increased to 2 per cent, was submitted by the senior consul at Tientsin to the diplomatic corps in his letter of June 20 (inclosure No. 13) and was duly approved by the latter on the 3d instant.

Although without definite instructions on the subject, I did not hesitate to agree to this slight increase, in view of the Department’s previous instructions to Mr. Denby when he approved the tax of 1 per cent for the same purpose. The Secretary of State then wrote Mr. Denby, in reply to the latter’s No. 2911, of April 13, 1898, approving his action, “the proposed tax appearing to be proper in principle and not enormous in amount.” (Mr. Day to Mr. Denby, No. 1591, of May 27, 1898.)

The continuance of the financial aid of the Chinese Government after the dissolution of the Provisional Government at Tientsin will be insured by the provision to be inserted in the agreement to be made with it regarding the financial measures to be taken for the payment of the indemnity, wherein it will be stated that in consideration of the raising of the tariff to 5 per cent, effective on imports, China will participate financially in the improvement of the Peiho and Whangpu rivers.

I am, etc.,

W. W. Rockhill.

[Inclosure 1.]

Tientsin General Chamber of Commerce to Dean of consular corps.

Tientsin, February 13, 1901.

Sir: By desire of the committee of this chamber, I have the honor to address you on the subject of the further improvement of the water approaches to these settlements and the native city.

It seems to be generally admitted that the works already carried out by Mr. De Linde have proved of very material advantage, and have in a large measure restored the water communication between the settlement and Taku. Lighters and small steamers have been able to navigate the river and reach Tientsin during the past year on a much heavier draft and with less difficulty and risk of collision than has been the case for several years past. This in itself has proved of immense benefit to the general trade of the port and has fully justified the comparatively small expenditure which has been made up to the present time.

Having regard to the decreased rainfall during the last two seasons and taking in consideration the vast accumulation of silt, it naturally follows that some time must elapse before the river is restored to a condition to enable steamers to safely navigate the channel, as was the case previous to the years 1885, 1886. But there seems little doubt in the minds of those qualified to express an opinion that the results obtained must be regarded as satisfactory and encourage the hope that further work will ultimately achieve the desired success. Mr. De Linde’s original plans for dealing with the river embraced the cutting of several bends to not only shorten the river, but also to obtain the fullest advantage from the incoming tide and the natural increase of force of the outgoing current, which it is calculated would remove the silt accumulation within a very much shorter period than could possibly occur under other circumstances. My committee, in consultation with gentlemen representing the shipping interests of the port, have carefully considered the question, and I am directed to inform you that we are unanimously of opinion that some steps should be taken at once to adopt the recommendations contained in Mr. De Linde’s reports of 1890 and 1901 (copies of which I understand are in your possession), and to proceed at once with the work of cutting the Tientsin and arsenal bends together, with certain other measures embodied in these reports.

In view of the fact that the country between Tientsin and Taku is now under the jurisdiction of the provisional government, the committee think the time most opportune for dealing with the matter, as the many difficulties incidental to such an enterprise can be more effectually dealt with. It is estimated that to cut the two bends named, modify the radius of other bends, and obtain certain reaches, will require the expenditure of some 300,000 taels. As my committee anticipate that difficulties may arise in connection with raising such funds, this aspect of the question has been discussed very fully, and I may say, for your information, that the chamber, subject to the appointment of a duly constituted conservancy board representing the various interests involved to insure a continuity of policy, will be prepared to formulate a scheme for the approval of the diplomatic body in Pekin.

In asking you to place this matter before your colleagues, I venture to hope we may receive your invaluable support and assistance, and that the question may be considered with as little delay as possible.

I have, etc.,

W. W. Dickenson, Chairman.

[Inclosure 2.]

M. du Chaylard to the Chamber of Commerce.

Consulat de France à Tientsin, February 25, 1901.

Sir: I have the honor to inform you that I have submitted to my colleagues the letter which you addressed to me under date of February 13 last, relative to the proposed measures in connection with the river improvement scheme. The consular body will do all in their power to further the measures which the Chamber of Commerce proposes, and will, as soon as they receive it, carefully go into the scheme which you promise to submit.

I am, etc.,

Du Chaylard.

[Inclosure 3.]

Chamber of Commerce to the Consular corps.

Tientsin, March 2, 1901.

Sir: I have the honor to acknowledge the receipt of your letter dated February 25, in which you are good enough to inform me that the consular body, having considered my letter of February 13 on the subject of river improvement, are willing to do all in their power to further the measures proposed by the chamber and requesting me to submit for their consideration our views on the subject. In accordance with that request I have now the pleasure to bring before you for the consideration of the consular body the opinion of this chamber on the question of administration and our suggestions for raising the required funds.

Administration: For the proper control of the works and finances to insure a continuity of policy until all loans and obligations ate fully discharged, it is absolutely necessary that a conservancy board be constituted, and it seems most desirable that such a board should represent all the interests involved.

My committee think a board constituted as follows would meet these requirements and not prove too cumbersome to be effective: Doyen, or nominee of the consular body; a member of the provisional government; the commissioner of Imperial maritime customs; a representative of the shipping interests; a representative from each properly constituted foreign municipality.

It is suggested this board be especially empowered to—

A. Assume full control of the river works already created.

B. Accept all the obligations pertaining to the scheme of 1898 now in existence.

C. Assume all financial control.

D. To appoint an expert consulting engineer.

Finance: The 6 per cent municipal loan issued in 1898, to provide the foreign contribution for the scheme of that year, was for 150,000 taels, and of this amount 130,000 taels remains outstanding at the present time.

As security for the payment of interest amortization the sanction of the ministers and Chinese authorities was obtained to levy dues of 1 per cent on duties paid in the ordinary way to the Imperial customs. There were a few slight modifications made in the river-dues tariff to meet especial cases, and the period of collection was from August 1, 1898, until 1910 (twelve years), by which time it was calculated the whole obligation would be liquidated.

For the first complete year the amount so collected was, after deducting the cost of collection, about 21,000 taels, or slightly below what had been estimated, but still fully sufficient to meet the financial requirements. It is estimated that to provide funds for the new works in contemplation a further sum of 300,000 taels will be required, and my committee proposes that this sum be raised by the issue of bonds under the seal or seals of the municipalities, as was the case before. Owing, however, to different financial conditions prevailing now, a rate of 7 per cent interest instead of 6 per cent must be provided for. As a first security for the payment of interest and amortization of this proposed loan, it is absolutely necessary that calculation should be based upon a revenue likely to arise from shipping or otherwise, when steamers are able to reach the bund, and it is therefore proposed that the existing river dues of 1 per cent should be doubled (making the levy 2 per cent on duties) and that the period of collection be extended until 1923, or twenty-five years from the original date.

Based upon the figures previously referred to, this would produce an annual sum of 42,000 taels, which would be sufficient to terminate the existing loan of 130,000 taels, and the new 7 per cent loan of 300,000 taels in 1909 and 1919.

My committee wish to urge upon you the principle that all craft deriving benefit from the improved condition of the river should be called upon to contribute in some form to the general funds, and the chamber therefore earnestly submits for yous consideration the following proposals, viz:

1. That all lighters coming to the bunds and wharves, or discharging in the Tientsin reach, shall contribute 5 candareens per ton (dead weight) on the cargo brought up in their own bottoms. Provided always, that such charge shall not be made if the depth of water in any part of the river between Taku and Tientsin be less than 9 feet.

2. That all steamers coming to the bunds and wharves, or discharging in the Tientsin reach, shall likewise contribute 5 candareens per ton (dead weight) on cargo brought up in their own bottoms.

3. That seagoing junks and sailing vessels reaching Tientsin shall also pay a proportionate sum.

4. That all revenue arising from any or all of the above sources to be applied as follows:

(a) Two-thirds of the sum, after deducting the cost of collection, to the immediate redemption of bonds.

(b) One-third of the sum shall be set apart to form a maintenance fund.

In view of the fact that the revenue to be derived from any of the sources is problematical, it is not possible to form any estimate of what the product will be, but my committee have so much confidence in the final success of the scheme that they are of the opinion that even at the extremely moderate rates named the whole liability in connection with the loans would be cleared off in a very few years.

I may mention for your information, that on the distinct understanding that the levying of dues (on duties and craft) will only remain in force as long as the financial obligations named above exist, I have reason to believe the steamship companies will offer no objections to the proposals.

W. W. Dickenson,
Chairman Chamber of Commerce.

[Inclosure 4.—Translation.]

Dean of Consular Corps to Dean of Diplomatic Corps.

Tientsin, March 18, 1901.

Monsieur the Dean: Since the silting up of the river has prevented steamers from coming up to Tientsin, the consular corps, the chamber of commerce, and the municipalities duly preoccupied by this condition, so prejudicial to the general interests of this port, have endeavored to make the course of the Peiho available again for steam navigation.

In 1897, after a series of long and difficult negotiations with the Chinese authorities, an understanding was happily reached on a plan drawn up by Mr. de Linde, a Danish engineer, which entailed a general outlay of 315,000 taels, of which amount it was decided to devote in the first place 250,000 taels to carrying out the most urgent works needed for raising the level of the river. The viceroy of Pechili consented to contribute the sum of 100,000 taels, and the foreign community was to raise itself the balance of 150,000 taels to insure the payment of interest and the amortization of the loan decided upon.

In the first place, the foreign commerce expressed itself in favor of a method of taxation to be settled upon to which foreign enterprise and native traffic were alike to be subject. This plan was, however, shortly after abandoned, and so as to prevent any loss of time a plan was adopted which was more readily applicable and was based on the creation of a municipal tax, due on entry and leaving, on all merchandise subject to the payment of customs dues. The levying of this was to be done in the name and for the account of the municipalities, through the customs administration, for a period of twelve years from the 1st of August, 1898, to the 1st of August, 1910. Such was the condition of the question, of which I have only outlined the general features, when it was submitted to you with all details in a letter dated the 5th of August, 1898, by Mr. Tei,¹ at the time dean of the consular body, with a request that you submit it to the diplomatic corps, and obtain from it the necessary agreement for the establishment of the tax referred to. With a promptitude for which the foreign community of Tientsin has always shown itself deeply grateful, the proposition was presented by you to your colleagues, and a few days after you returned it to Mr. Tei with their unanimous assent. A loan of 150,000 taels was shortly after contracted at the Hongkong and Shanghai Banking Corporation by the British municipality;, and on the 26th of July a contract with Mr. de Linde for a period of two years was signed by him, the dean of the consular corps, the taotai, and the commissioner of customs, and the works, the control and supervision of which were intrusted to the dean and to the taotai, commenced on the 1st of August.

The works were continued without interruption until the 25th of May, and have been carried out in the most satisfactory way. All the dams were finished when hostilities broke out, and a very decided improvement had already taken place in the river, the level of which had risen and had been maintained at an average of 10 feet of depth, allowing boats, if they had not been impeded by the sharp bends of the river, to come up to Tientsin. Serious damages, happily repaired since, thanks to the financial aid given by the British military authorities, have restored things to the position in which they were before the insurrection, and the satisfactory results which I previously indicated may be considered as definitely secured.

Calm being reestablished, the chamber of commerce of Tientsin, anxious to carry out in full the programme of 1897 and to see completed the de Linde plan, has again requested the aid of the consular body, and has transmitted to me, under date of the 2d of this month, a very full memorandum, which forms the inclosure No. 1 and which contains the following propositions, which, briefly stated, are:

1. Formation of a committee composed of the dean of the consular corps, of a member of the provisional government of the Chinese City, or, failing that, of the customs taotai, of a representative of the shipping interests, of a representative of the already organized foreign municipalities, and of the consul of the power being without any municipal organization, said committee to be intrusted with examining the works already executed, and of ascertaining whether all the provisions of the contract of 1898 have been fulfilled, to control expenses, and, finally, to nominate an expert engineer.

2. Project of a loan for the sum of 300,000 taels, necessary for finishing the works, to be guaranteed by the municipalities as the previous one, with interest at 7 per cent, instead of at 6 per cent, by reason of the present financial conditions.

3. Increase to 2 per cent, instead of 1 per cent, of the municipal taxes, and extension of the period during which it should be levied until the 1st of August, 1923, instead of 1st of August, 1910, the date previously fixed upon.

4. The fixing of a tonnage due of 5 candareens a ton on steamers, cargo boats, seagoing junks, or sailing ships coming up to Tientsin and unloading their cargoes there.

5. The following appropriation of the taxes levied: Two-thirds to interest and amortization of the loan, and one-third to form a reserve fund.

These various propositions have been unanimously accepted by the consular corps, and I have been directed to transmit them to your excellency with the request that you secure the approval of the diplomatic corps to them, said approval being awaited so that the loan in question may be issued without any delay.

One of my colleagues, the German consul, has expressed the wish adopted by all, to see eventually the tax of 2 per cent transformed into a fixed tonnage due, to be levied on all ships coming within the waters of Tientsin. But this measure, requiring the sanction of all Governments, could only be carried out after more or less delay, and it seems for the time being preferable so as to escape all delay, of following a method similar to that adopted in 1898 and to provide for actual requirements by a municipal tax.

I must finally inform your excellency and beg you to call the attention of all of your colleagues to the semiconflict which has arisen between the consular corps and the provisional government, which, though it existed previously in a latent state, has only broken out through improvement of the river. The incident which took place on this connection has raised a question of principle which can only be settled by the diplomatic corps, and I am instructed by my colleagues to request, through your medium, a decision determining definitely the rôle and the attributions of each of the parties. The letter by which the provisional government notified me under date of the 22d of August of its assumption of power, which dated from the 25th of July, contains a declaration, the importance of which can not escape you. “The council,” it is there said, “being the emanation of all the powers, shall enjoy, within the territory which is confided to it, absolute independence, and shall comply, so far as possible, with all the demands which may be made of it, as well by the commanders of the allied troops as by the consuls of the foreign powers.”

We all experienced a certain amount of surprise in learning that the provisional government which we thought was only a delegation of the generals commanding the allied troops and specially charged with the administration and police of the city and its surroundings having no political character and no authority over foreigners, considered itself on the contrary as the emanation of the powers who had already permanent and authorized representatives in the persons of their ministers; that it reserved to itself the right to pass on the requests which would be made to it by the foreign consuls. Perhaps we should have protested at the time, but no difficulty having arisen for several months, we kept silence, trusting that nothing would arise obliging us to break it. But on the 12th of February, the provisional government, which could not ignore the fact that the consular corps had been the only one until then intrusted with the question of the improvement of the river, and had superintended the works, took the initiative of calling a meeting to which it invited the consuls and the presidents of the chamber of commerce and of the British municipality.

I informed my colleagues of the invitation which had been sent them, and we discussed together the answer to be made. It was unanimously decided to abstain, and I was directed by my colleagues to send a letter to the members of the provisional government, the terms of which were settled upon in a meeting, informing them of our decision.

I should add that the same action was taken by the presidents of the chamber of commerce and the British municipality.

In its turn, after having adopted in principle the conclusions reached by the chamber of commerce as regards the proposition of the committee of control of supervision, the consular corps requested me to ask the provisional government to designate one of its members to be present at a meeting of said committee, at which were to be examined the proposals of the chamber of commerce. Deeming doubtless either that its dignity did not allow it to respond to the requests of the consuls, or that it could do without their assistance, the provisional government informed me by letter that it did not consider that it could agree to send a delegate. It ended this communication by stating that it had given orders for beginning the works in the shortest period possible, and that it would be happy to see a member of the consular corps on the commission it had organized for that purpose.

This statement will enable your excellency to understand the situation and to realize that it can not continue without serious inconveniences. If the provisional government is qualified to look after the commercial interests of the various nations confided until the present time to the consuls under, direction of their various ministers; if it has the power to have approved by the diplomatic corps the impost of taxes destined to insure the payments on a loan contracted for works of general usefulness, the consular corps is ready to bow to the decision of its chiefs, but if as it hopes, the latter’s rights are maintained, it thinks that two committees are useless, and that the provisional government, whose suggestions will always be listened to, and which will furthermore have, just as the consular corps, a vote in the committee, should be notified to join it and to deposit in the common fund the sums which it proposes to expend on the Peiho works.

It is with the most absolute confidence that in the name of my colleagues and my own, I place this case in your hands, certain that it can not find a defender more just and devoted.

Please accept, Mr. Dean, the assurances of my consideration.

Du Chaylard.

[Inclosure 5.—Translation.]

Mr. de Cologan to Marshal Count von Waldersee.

Peking, March 20, 1901.

Monsieur le Marechal: The diplomatic corps has examined most carefully and with great interest the communication which your excellency was pleased to make it in your letter of the 13th March, and which bears on the question of the measures to be taken to improve the navigation of the Peiho.

It saw that these measures had at the same time a military, commercial, and political character, and that as such they interested equally the military, consular, and diplomatic authorities. It appeared, furthermore, that for several years past, as your excellency remarked, it has been called upon to occupy itself with this question, in conjunction with the governor-general of Chihli. After negotiations which took place at Pekin between the representatives of the powers and the Chinese Government, a committee composed of the dean of the consular corps at Tientsin, of the commissioner of the maritime customs and of the customs taotai, was intrusted with the supervision of the works which were to be carried out by the engineer chosen by the consular corps, and with the financial measures to be taken to insure said execution.

The diplomatic corps is of the opinion that to guarantee the continuation of the work of which it took the initiative, and to maintain its original character, it is necessary not to modify, any more than circumstances demand, the composition of the committee which it formed jointly with the Chinese Government.

Among the component parts of the committee there are two which subsist in the state in which they were at the time when this business was begun. These are the dean of the consular corps and the commissioner of customs at Tientsin. The customs taotai has disappeared with the local authorities, which have been replaced by the provisional government, who assumed its powers. It is consequently for the provisional government, invested with purely administrative powers, to delegate a representative so that the committee, incomplete as a result of events, shall be reconstructed and in a position to continue its labors.

The representatives of the powers are entirely in accord with your excellency and with the provisional government on the utility which necessitates the improvement of the navigation of the Peiho. It is particularly for that reason that they deem it proper to preserve the method which they have adopted, and to leave to the consular authority all the rôle which belongs to it in the accomplishment of this undertaking. If it were otherwise, the day when the local authorities shall resume the normal exercise of their functions shall substitute themselves in their turn to the provisional government, the consular corps would find that it had lost the benefit of its regular position, which would compromise its influence and might endanger all the interests which it has for its mission to represent.

The diplomatic corps is expecting a report of the consular corps on this subject. As soon as it shall have received and examined it, it will at once give the necessary instructions to the consuls so that the undertaking in which the provisional government so rightly interests itself may continue in the most favorable conditions, and to the satisfaction of all interests. I shall not fail to communicate these instructions to your excellency.

Please accept, Monsieur le Marechal, the assurances of my highest considerations.

B. J. de Cologan.

[Inclosure 6.—Translation.]

Count von Waldersee to Mr. de Cologan.

Peking, March 25, 1901.

Excellency: I have the honor to acknowledge the receipt of your excellency’s letter of the 20th of March, concerning the steps to be taken for improving the navigation of the Peiho.

I can not but express my profound gratitude for the cordial reception given by your excellency to the views which I detailed in my letter of the 13th of March.

I have also to express my great satisfaction that my argument on the great value which, from a political, military, and commercial point of view, should be attached to the most prompt carrying out of the conservancy works in question, has met, in principle, with the approval of your excellency and your colleagues.

In my above letter of the 15th of March I inclosed the minutes of the provisional government of Tientsin relating to this business, and requested that they be returned to me when no longer needed. Not having received these minutes with the letter of your excellency of the 20th March, I beg that you will return them to me.

As to the question itself, fully appreciating the arguments adduced by your excellency, I deem it advisable that the conservancy works of the Peiho should be intrusted to the direction and subject to the control of a committee. By this means misunderstandings and conflicts as to competency will be most easily averted—conflicts which it would seem have already taken place at Tientsin, and through which the interests of all and the early execution of the works might be materially compromised.

For my part, I can have no objection to the composition of this committee as suggested by you excellency, to wit: A member of the provisional government, a member of the consular corps, and a representative of the maritime customs.

Likewise I can see no objection to representatives of the concessions at Tientsin being admitted to the meetings of the committee for consultation only. This committee would have to examine the question of the improvement of the Peiho from technical and financial points of view, and adopt on its own responsibility the necessary measures to reach a satisfactory result on all different points.

Since I am not in a position to give orders myself to the provisional government, being obliged previously to obtain the consent of the commanders of the various contingents, I shall not fail to ask their opinion immediately; but, I think I may count on their consent; consequently, to prevent all loss of time, I have taken the liberty of previously submitting in my own name to the consideration of the diplomatic corps the above-enumerated propositions.

As I am led to believe by some remarks contained in your letter of the 20th of March that there is some uncertainty as to the duty and the powers of the provisional government, I inclose a copy of the regulations drawn up by the commanders of the various contingents for the provisional government.

A. Waldersee,
General Field Marshal.

[Inclosure 7.—Translation.]

Mr. de Cologan to Count von Waldersee.

Peking, March 26, 1901.

Monsieur le Marechal: The diplomatic corps has read with great pleasure the letter of your excellency dated the 25th of this month, and bearing No. 1154. It has seen the agreement with you on the methods to be followed to continue as rapidly as possible the works for the improvement of navigation on the Peiho; it has decided to give as instructions to the consuls at Tientsin, who on their side had submitted the question to it, to reach an understanding with the provisional government to form the committee to which your letter alludes, to fix the powers of its members, and to prosecute the carrying out of the scheme in question.

As to defining the powers of the provisional government, and as to the regulations which your excellency was pleased to send me with the letter to which I am now replying, the diplomatic corps reserves to itself to inform you shortly of the manner in which they should be understood.

I inclose with this letter the documents sent in your communication of the 13th March, and which you have asked me to return to you.

I avail myself, etc.,

B. J. de Cologan.

[Inclosure 8.—Translation.]

The Dean of the Diplomatic Corps to the Senior consul at Tientsin.

Peking, March 26, 1901.

Monsieur le Doyen: I have received and communicated to my colleagues the letter which you wrote me on the 18th of this month, in the name of the consular corps of Tientsin, concerning the plan for improving the navigability of the Peiho.

Prior to this the question had been submitted to the diplomatic corps by his excellency Marshal Waldersee, in the name of the provisional government of Tientsin, and it had been called upon to express its opinion on the principal points submitted by you for the consideration of the representatives of the powers.

Inclosed you will find copy of the letter which my colleagues unanimously directed me to send to his excellency Marshal Waldersee, in reply to the one I had received from him.

In a second letter, of which I send you all the passages concerning the means which might be used to improve the navigability of the Peiho, his excellency Marshal Waldersee accepts for himself, and, subject to consultation with the commanders of the expeditionary corps, the constitution of a committee in which shall be represented the consular corps of Tientsin, the maritime customs, the provisional government, and the foreign commerce.

Such being the case, it seems to the diplomatic corps that it only remains to leave to the consuls to reach an understanding with the provisional government, to organize a committee to determine the powers to be granted its members and to carry on the execution of the plan, the history of which was very exactly outlined by you in the letter to which I had the honor to reply.

As to the question of principle resulting from the constitution of the provisional government and from the functions which it has attributed to itself, its importance can not escape the representatives of the powers, and I am directed by them to inform you that they have the question under consideration and will soon be in a position to inform you of their solution of it.

I avail myself, etc.,

B. J. de Cologan.

[Inclosure 9.—Translation.]

General de Gayl to Mr. de Cologan.

Peking, April 30, 1901.

Mr. Minister: As a continuation of his letter of the 25th of last March and at the same time as a reply to the communication of your excellency of the 26th instant, the commander in chief of the allied armies has the honor to inform your excellency that the commanders of the contingents represented in the provisional government of Tientsin have now agreed with the proposal to continue the works for the improvement of the Peiho through a committee composed as stated in the dispatch of the 25th of last month.

The time has therefore come for the consular body at Tientsin to appoint the member of the committee which belongs to it to designate, and the commander in chief of the allied forces requests you to take the necessary steps to this end with the consular body. In the interests of the undertaking all action taken in the matter will be greatly appreciated. Sir Alfred Gaselee particularly called the attention of the commander in chief of the allied forces to this subject.

As to the question who shall preside over the committee, the commander of the allied forces takes the liberty of proposing that the presidency shall be given to the member senior in rank who represents foreign interests. The member of the committee to be appointed by the provisional government of Tientsin could also for this purpose be considered as a representative of foreign interests.

By order of the commander in chief of the allied forces:

L. de Gayl, Major-General.

[Inclosure 10.]

Senior consul at Tientsin to Dean of diplomatic corps.

Tientsin, May 1, 1901.

Your Excellency: I have the honor to address your excellency on the subject of the proposed conservancy board for the regulation of the Peiho River, the formation of which your excellency was good enough to state in your letter of the 26th of March had been approved by the diplomatic body in Peking.

After the departure of M. du Chaylard, the late doyen of the consular body at Tientsin, it fell to my lot, as his successor as senior consul, to invite my colleagues to a meeting to decide on the next steps to be taken for the definitive selection of the personnel of the new board.

This meeting was held on the 29th of April, and during the course of our discussion it appeared that minutes of the meeting of the 13th of March had been drawn up and signed by the late doyen and sent to one of our number, but the rest not having seen the document and no draft having been left in the doyen’s archives, it was resolved to adjourn till next day, the 30th, to enable these minutes to be circulated.

We accordingly met again yesterday, and it is as a result of this second meeting that I am now addressing your excellency.

Your excellency will observe that part of M. du Chaylard’s letter to your excellency of the 18th of March, which deals with the proposed composition of the conservancy board, is not altogether expressed in the same terms as are used in the minutes, a copy of which I have the honor to inclose herewith.

It was probably a consequence of the press of work, due to his approaching departure, that M. du Chaylard did not observe the appreciable variation between the two proposals on this head, as stated in his letter and in the minutes.

However, a certain degree of importance attaches to the point, and the three members of our body who were present at the meeting of the 13th of March, as well as at those of the 29th and 30th of April, namely, the consuls for Belgium, Germany, and Russia, are of the opinion that the minutes represent more exactly what was agreed to at the earlier meeting than those of Monsieur du Chaylard’s letter of March 18. Under these circumstances we have felt it best to bring these minutes to your excellency’s notice, in order that the diplomatic body may be apprised of the facts above stated, and have opportunity, should they see fit, to signify their view as to which scheme for the composition of the conservancy board should be adopted—that specified in M. du Chaylard’s letter or that contained in the latter part of resolution 2 of the minutes forwarded herewith.

I have the honor, etc.,

L. C. Hopkins,
His British Majesty’s Consul-General and Senior Consul.

[Subinclosure.]

Resolutions adoptées dans la réunion consulaire du 13 mars 1901.

1. Acceptation du principe même des travaux de la rivière.

2. Acceptation de la création d’une commission ainsi composée:

Doyen du corps consulaire;

Un représentant du Gouvernement chinois, soit actuellement un membre du Gouvernement provisoire et après sa disparition le tao-tai;

Président de la chambre de commerce;

Un représentant des municipalités ètrangères existantes, et à défaut de municipalité constituée le consul ou son délégué;

Les représentants des compagnies de navigation.

3. Établissement d’un plan pour indiquer les travaux à faire sur les concessions pour maintenir à 100 mètres de largeur de la rivière, et entente entre les municipalitès.

4. Désignation de M. de Linde comme ingénieur chargé de l’exécution des travaux.

5. Convocation pour samedi 16 mars à 10 heures du matin d’une réunion de la commission pour adopter une résolution définitive sur les voies et moyens.

Le Doyen du Corps Consulaire, Consul Général de France,

du Chaylard.

[Inclosure 11.—Translation.]

Committee for the preservation and navigability of the Heiho (Peiho).

No. 1.]

Tientsin, June 11, 1901.

Mr. Minister: We have the honor to respectfully inform your excellency that as a result of your communication to the consular corps and of that of Marshal Count de Waldersee to the council of the provisional government of Tientsin this committee, composed of Major-General de Wogack, member of the council of the provisional government; Mr. L. C. Hopkins, consul-general of Her British Majesty and dean of the consular corps; Mr. G. Betring, commissioner of the imperial maritime customs at Tientsin, has met and entered upon the discharge of its duty.

We have the honor, excellency, etc.,

• C. de Wogack.
• L. C. Hopkins.
• G. Detring.

[Inclosure 12.—Translation.]

Mr. de Cologan to the Committee for the preservation, etc., of the Peiho.

Peking, June 13, 1901.

Gentlemen: I have had the honor to receive your letter of day before yesterday, by which you inform me that you compose the committee for the improvement of the navigation of the Peiho and that you have met and entered upon the discharge of your duty.

I hasten to inform my honorable colleagues, who, without a doubt, will learn with great satisfaction of the happy result.

Accept, etc.,

B. J. de Cologan.

[Inclosure 13.]

Senior consul, Tientsin, to Dean of diplomatic corps.

Tientsin, June 20, 1901.

Your Excellency: I have the honor to inform your excellency that a plenary meeting of the Peiho River conservancy board was held yesterday afternoon, which, I trust that I am not oversanguine in thinking, should have important and satisfactory results.

Among the various questions that were then discussed was that of financial ways and means.

General de Wogack, the president of the board, having announced certain offers of financial assistance on the part of the Tientsin provisional government to the meeting on condition that the commercial interests concerned would raise funds on their side also, it was pointed out by the chairman of the chamber of commerce that the commercial interests were still willing to stand by their scheme of raising the necessary funds which was proposed in their letter of March 2, 1901, to my predecessor, M. du Chaylard, a copy of which was transmitted to your excellency by him in his letter of the 18th of the same month. That scheme was outlined in the following passage:

“As a first security for the payment of interest and amortization of this proposed loan, it is absolutely necessary that calculations should be based upon a revenue quite apart from any revenue likely to arise from shipping, or otherwise, when steamers are able to reach the Bund, and it is therefore proposed that the existing river dues (of 1 per cent) be doubled (making the levy 2 per cent on duties), and that the period of collection be extended until 1923, or twenty-five years from the original date.”

The president of the chamber of commerce, however, now observed that no statement had yet reached the chamber that its proposals in this regard had received the approval and sanction of the diplomatic body in Peking.

Accordingly, with the assent of my colleagues present at the meeting, I offered to address your excellency on the subject, and to express the general hope that the explicit approval of their excellencies, the members of the diplomatic body, of this proposition to double the existing river dues may be signified to me for communication to the chamber of commerce, thus enabling the necessary steps toward raising the requisite funds to be taken without futher delay.

I have the honor to be, etc.,

L. C. Hopkins,
His British Majesty’s Consul-General and Senior Consul.

[Inclosure 14.—Translation.]

Mr. de Cologan to Mr. L. C. Hopkins, His Britannic Majesty’s consul-general and senior consul at Tientsin.

Peking, July 3, 1901.

Mr. Consul-General: I have the honor to inform you that the diplomatic corps has approved the proposal contained in your letter of the 20th of June last, to double the taxes already existing for the improvement of the navigation of the Peiho.

Please accept, Mr. Consul-General, the expression of my distinguished consideration.

B. J. de Cologan.

[Inclosure 15.]

River Conservancy Board.

The question of rectifying the course of the Haiho (commonly called Peiho, from one of the several streams that converge at Tientsin to constitute that waterway) and of the work to be done to allow ships of a certain draft of water (12 feet to 12 feet 6 inches at the utmost) to ascend the river to the foreign concessions of Tientsin, is a very old one.

After the disastrous flood of the spring of 1890 His Excellency Li Hung Chang, then governor-general of Chihli, was induced to allow Mr. A. de Linde, Danish engineer, to make surveys, on which a great scheme was proposed the same year by Mr. G. Detring, at the time and again at present, commissioner at Tientsin of the Chinese Imperial maritime customs. On the technical side this scheme had the advantage of beginning the work before the state of the river, as regards navigation, should get worse, as it has since done. As financial means Mr. G. Detring proposed to employ: for the work the sum of 1,000,000 taels, subscribed in the south (Canton) for the benefit of the sufferers by the flood, and to repay this amount by annual installments by levying extra tonnage dues on every ship making use of the new channels. This would not have practically diverted the money from its intended object, as the work projected would have regulated the flow of the water so as to avoid future floods. A strong opposition on the part of the local Chinese officials, who feared that the free navigation of the river might interfere with their private interests, succeeded in defeating the scheme.

The state of the river grew worse and worse, so that in 1896, during several months, even lighters and tugboats could not come up to the concessions.

This aroused at last the commercial community and led, in the beginning of 1897, to the first negotiations between Count du Chaylard, French and senior consul; Mr. H. B. Bristow, Her Britannic Majesty’s consul, with Mr. Ed. Cousins, chairman of the Tientsin general Chamber of Commerce, and Mr. de Linde, as adviser, on one side, and His Excellency Wang Wen-Shao, at the time governor-general of Chihli, on the other side—negotiations which concluded with the decision to undertake the first part of the work, amounting to 250,000 taels, and the appointment of a mixed Commission to carry it on. This commission was composed of—

• The Tientsin customs (Haikwan) Taotai.
• Two Chinese officials nominated by the governor-general as the representatives of the two Chinese companies—China Merchants Steam Navigation Company, and Chinese Engineering and Mining Company.
• The commissioner at Tientsin of the Chinese Imperial maritime customs.
• Representatives of different shipping and lighters companies.
• Representatives of the foreign concessions (in existence at the time).
• Representatives of Tientsin general Chamber of Commerce.

The necessary amount of money was provided for by grants from the municipal councils of the foreign concessions and from the Taku Tug and Lighter Company, Limited, and an extra tonnage due of 3 candareens per registered ton, levied for each trip; this last income, the most important one (as the tonnage of the port being estimated at over 550,000 tons annually, it would represent more than three times the total amount of all the others) could not be levied until the work was finished and as certain powers formally objected to any increase in the tonnage dues, it became necessary to find some other income approved by everybody that could be raised at once. Finally it was agreed, with the approbation of the Chinese authorities and the foreign ministers at Peking, to levy an extra duty of one-half per mille “ad valorem” on all merchandise, to be collected by the Chinese Imperial maritime customs on account of the commission, to provide for the payment of interest and amortization of a loan of 150,000 taels—guaranteed by the municipality of the British concession, the governor-general giving the 100,000 taels necessary to complete the 250,000 taels—needed to have the work done. This being secured the work begun in the fall of 1898, and having been actively pushed since spring 1899, was nearly finished in spring 1900, thanks to the liberality of the ratepayers of the British concession, who consented that certain of their municipal properties should be mortgaged to guarantee the loan which otherwise could not have been raised.

Last year’s events, still fresh to our memory, brought the destruction of nearly all the works, and the indemnity claimed therefor from the Chinese authorities amounts to 126,000 taels.

Immediately after the taking of the Tientsin native city, the British military authorities tried to secure communication by the river, and amongst others concluded an agreement with Mr. de Linde for several months by which, for payment of certain sums, he undertook to have done the most necessary work to maintain the depth of the water in the river and water communication.

As the règlements généraux d’administration de la cité chinoise de Tientsin established at the end of July through the unanimity of all the commanding officers of the contingents of the allied powers did not mention this matter, the council of the provisional government could not attend to it, especially on account of having its jurisdiction limited to the mud wall and want of funds.

It was only at the end of January of this year that his excellency, Field Marshal Count von Waldersee, forwarded to the council of the provisional government the new Règlements généraux du Gouvernement Provisoire du district de Tientsin, approved by all the commanders in chief of the contingents of the allied powers, by which the jurisdiction of the council was extended up to the sea, beyond Taku, and containing the following paragraph:

“II. Dans l’étendue du district dont la jurisdiction lui est ainsi confiée, le conseil devra, au moyen de son organe propre d’administration assurer la sécurité de la ville, de Tientsin, achever les travaux publics en cours et entreprendre ceux qui paraîtraient nécessaires, maintenir et améliorer les communications par les fleuves et canaux. * * *”

The translation of which is:

“II. Within the district so intrusted to it, the council must, with its own administration, establish the security of the Tientsin city, complete the public works begun and undertake those which may seem necessary, maintain and improve the communications by the rivers and canals. * * * *”

The council, which always kept an eye on this question, ordered, in obedience to the new règlements généraux, Mr. de Linde, in charge of the public works department, to report on this subject, and called immediately for the 16th of February an unofficial meeting of all the parties (bodies, corporations, associations, and others) interested in the matter, so as to be able to discuss together the question and decide what should be done, as the said council desired particularly to give to the commercial community of Tientsin the benefit of the work which was to be done in any case to secure, from a military point of view, communication by water; the revenue having largely increased lately, the council had sufficient means to start the work at once, intending to get the balance from the indemnity to be paid by the Chinese authorities who, in accepting the collective note from the ministers in Pekin, have bound themselves to secure free communication between the capital and the sea.

It is to be regretted that the council having not clearly exposed the situation in the invitation to attend this meeting, some unfortunate misunderstanding, embittered by questions of precedency, arose and divided the council of the provisional government and the commissioner of customs on one side from the consular body, municipal councils, corporations, private companies, and the public in general on the other side.

Therefore the council elected three of its members, Major-General de Wogack, Lieutenant-Colonel Arlabosse, and Lieutenant-Colonel Bower, to constitute a commission to take the necessary steps and to supervise the work. Mr. Detring, commissioner of customs, the only one of those invited who attended the meeting of February 16, was requested to join the commission.

The revenue of the provisional government having exceeded the highest expectations, the council decided, especially on account of the urgency of having the work done before the rainy season, to put at the disposal of the commission the amount of 100,000 taels, so as to enable it to make a start at once.

At the meeting of the commission held on March 10–23, which Mr. Detring, commissioner of customs, attended on being invited to do so, it was decided, after having adopted some regulations, to begin at once the work of the first cutting (the nearest to Tientsin), at a cost of about 100,000 taels, so that it could be finished before the rainy season (middle June), and to request Mr. de Linde to report at once on the immediate removal of part of the Taku North Fort, near the mouth of the river, at present occupied by the Japanese, who already have consented thereto, this work being estimated at 11,000 taels in all. The question of the two other cuttings was also discussed in particular regarding the possibility of finishing them also before the rainy season.

On the 4th of March the council sent to his excellency, Field Marshal Count von Waldersee, in his quality of senior of the commanders in chief, from whom the council derives its powers, a long memorandum relating all that had happened.

This memorandum set forth that the cost of the whole work was estimated at 500,000 taels, of which 300,000 taels would accomplish in four months such work as would enable gunboats to ascend the river to the concessions; that the foreign banks at Tientsin were ready to advance the necessary loan at 7 per cent (instead of 6 per cent, as on the former loan); that the Chinese Imperial maritime customs could hand annually to the provisional government some 21,000 taels, levied on Chinese merchandise and paid formerly to the authorities of the city. This memorandum also stated that it would be just to free the municipality of the British concession from the guaranty given and include air the expenses of improving the navigability of the river in the indemnity due from the Chinese Government, which has guaranteed that free communication shall exist between Peking and the sea. It was further proposed that until this indemnity shall be paid, each of the powers having a representative on the council should advance the amount of 50,000 taels, making in all 300,000 taels, which would permit to start at once the most necessary work; that to avoid the contingency of the Chinese controlling, at any day, the works and their maintenance, the consular body should naturally be designated to succeed in this matter the provisional government after its removal, and therefore it would be advisable for said body to be represented on the provisional government’s commission, and that, if extra dues on merchandise were to continue to be collected, representatives of commerce, shipping, and foreign concessions ought also to join.

Meantime the General Chamber of Commerce of Tientsin has prepared a financial scheme and had forwarded it on March 2 to the consular body with a proposal for administration, as follows:

Members of the commission: The senior consul or nominee of the consular body; a member of the provisional government; the commissioner at Tientsin of the Chinese Imperial maritime customs; one representative of the shipping interests; a representative from each properly constituted foreign municipality.

Among others this commission will have to assume full control of the river works already created; accept all the obligations pertaining to the scheme of 1898 now in existence; assume complete financial control; appoint an expert consulting engineer.

Financial scheme: Out of the 150,000 taels, 6 per cent municipal loan of 1898, 130,000 taels are still outstanding.

As security for the payment of interest and amortization until August 1, 1910 (twelve years from August 1, 1898), 1 per cent is levied on duties paid to the Chinese Imperial maritime customs. (The customs tariff being generally based on a 5 per cent “ad valorem” duty, 1 per cent on duty is the same as ½ per mill “ad valorem” given above.) This has been going on regularly.

It is estimated that a further sum of 300,000 taels is needed for the new works and an interest of 7 per cent instead of 6 per cent must be provided for. As security for the payment of interest and amortization the existing river dues of 1 per cent ought to be doubled, making the levy 2 per cent on duties, and the period of collection ought to be extended until 1923, or twenty-five years from the original date. This would be sufficient to terminate the remaining 130,000 taels of the 8 per cent loan and the new 7 per cent loan of 300,000 taels in 1909 and 1919, respectively.

The amount collected was, after deducting the cost of collection, about 21,000 taels, fully sufficient to meet the financial requirements of the 1898 loan. In doubling the dues that will bring in 42,000 taels, which would be sufficient to meet the requirements of the two loans.

In addition to that the chamber of commerce proposed that—

All lighters coming to the bund and wharves or discharging in the Tientsin reach shall contribute 5 candareens per ton (dead weight) on the cargo brought up in their own bottoms; provided always that such charge shall not be made if the depth of water in any part of the river between Taku and Tientsin be less than 9 feet.

All steamers coming to the bund and wharves or discharging in the Tientsin reach shall likewise contribute 5 candareens per ton (dead weight) on cargo brought up in their own bottoms.

Seagoing junks and sailing vessels reaching Tientsin shall also pay a proportionate sum.

All revenue arising from any or all of the above sources to be applied as follows, after deducting cost of collection: Two-thirds to the immediate redemption of bonds, one-third to form a maintenance fund.

The chamber of commerce believes that the steamship companies will offer no opposition to the proposals on the understanding that the levying of dues (on duties and craft) will only remain in force so long as the financial obligations named above exist.

The General Chamber of Commerce of Tientsin, representing the commercial community of the place, forwarded on March 12 to the provisional government copy of its two letters dated February 13 and March 2, addressed to the consular body, acknowledging at the same time the keen interest taken by the said provisional government in the improvement of the navigability of the river.

According to this correspondence, the council of the provisional government wrote again to his excellency, Field Marshal Count von Waldersee, as senior commander in chief, showing that this financial scheme was very onerous and could only come in force after a certain time needed to have the sanction of the proper authorities to levy the dues mentioned (notwithstanding that the former dues could not be collected from subjects of certain powers), and therefore maintaining its former proposal to include the amount in the indemnity due by the Chinese Government and to receive from the powers represented in the council the sum of 300,000 taels, necessary to execute the works at once, as a loan to be redeemed on the payment of the indemnity by the Chinese Government. If for any reason whatever this amount should not be included in the indemnity, then the financial scheme of the chamber of commerce could be adopted, and out of the proceeds of the loan the 300,000 taels could be refunded to the powers. There would be more time to thoroughly discuss and prepare this scheme; being not in a hurry and things having quieted down and a normal state of affairs having been resumed, there will be even chance to get money at 6 per cent, which will be an important economy. As regards the composition of the commission, it is absolutely necessary that the council of the provisional government keep supreme control as long as it is responsible to the commanders in chief. After that, the consular body, the only element of the commission able to stand against the Chinese authorities, should take its place. It is well understood that seats on the commission must be reserved for representatives of institutions, corporations, associations, companies, and others who would contribute to the works and their maintenance, as well as for the commissioner at Tientsin of the Chinese Imperial maritime customs.

On March 3–16 the consular body held a meeting to which were invited to attend: One member of the provisional government, representatives of the shipping companies, representatives of municipal councils or administration of foreign concessions, and Mr. de Linde.

According to a decision taken at a previous meeting, the commissioner at Tientsin of the Chinese Imperial maritime customs was not invited to attend.

The senior consul having in his letter of February 15 to the provisional government declared that the consular body could only accept suggestions from the provisional government, the council of this body did not find it necessary to be represented at the meeting.

At this meeting it was decided—

To establish a commission according to the proposal of the chamber of commerce, with the exception of the member of the provisional government and the commissioner of customs, and in place of the latter to ask, through the diplomatic body in Peking, the two Chinese plenipotentiaries negotiating actually with the foreign ministers to nominate a Chinese official of the rank of taotai at least.

To ask the diplomatic body to confirm the authorization to levy the dues of 1 per cent on customs duty and to raise it to 2 per cent.

To claim from the provisional government the implements having been used for the former works and which might be in its hands.

To lay a protest before the diplomatic body in Peking so as to stop the provisional government from doing anything that may interfere with the previous works.

The balance of the chamber of commerce’s scheme was also approved, the commission nominated as above to frame such rules and regulations regarding the other points as it may find necessary.

Although everything was ready, the commission of the provisional government did not want to begin work before having received the approbation of the commanders in chief.

The result of all these schemes and correspondences was an understanding between the doyen of the diplomatic body at Peking, acting for that body, and his excellency, Field Marshal Count von Waldersee, as senior commander in chief, acting for the commanders in chief, by which the number of the members of the commission was reduced to three, viz: A member of the provisional government, a member of the consular, body, the commissioner at Tientsin of the Chinese Imperial maritime customs, to whom were added, with consultative voice only, representatives of commerce, shipping, and foreign concessions.

This commission was to examine the question of improving the navigability of the Hai-Ho (Pei-Ho), technically and financially, and to take, in an independent way, such steps as would satisfy all parties interested in the matter.

Although this was agreed to at the end of March, it was only at the end of April that it was communicated at Tientsin to the senior consul by the doyen of the diplomatic body and to the council of the provisional government by his excellency, Field Marshal Count von Waldersee.

The consular body having seen in its meeting of April 17–30 that the composition of the commission was different from what it had proposed, and finding a certain ambiguity in the Peking wording in regard to the foreign concessions (one part of that body considering only as concessions those having a regular municipal council, namely, the British and French concessions and the German concession), has again referred the matter to the doyen of the diplomatic body, who has only now confirmed the decision agreed to with his excellency, Field Marshal Count von Waldersee.

Accordingly, the first meeting of the commission was held on May 9–22.

Major-General de Wogack, member of the council of the provisional government of the district of Tientsin; Mr. L. C. Hopkins, His Britannic Majesty’s consul-general and senior consul; and Mr. Detring, commissioner of the Chinese Imperial maritime customs, being present and constituting the commission.

It was decided that the works should be divided into three sections:

(1) Maintenance of the river in its actual state, for which the provisional government offers a monthly subsidy of 5,000 taels, and even more if necessary; the actual monthly expenses on this head are between 2,000 taels and 3,000 taels, not counting the wages of the engineer and others, who, being in the service of the provisional government, have freely given their time, care, and labor to this work. As” the commission for the improvement of the navigability of the Hai-Ho (Pei-Ho) is entirely independent of the provisional government, it must have its own staff entirely under its orders and quite distinct from the one belonging to the provisional government (according to the opinion expressed by the latter), and therefore the provisional government offers at first sight 2,000 taels, more than the running monthly expenses, so as to provide for the payment of a regularly specially appointed staff.

(2) Improvement of the navigablity of the river so as to allow gunboats and therefore steamers of a certain draft to come up the river to the foreign concessions. The total cost of these works is estimated at 500,000 taels, of which the provisional government undertakes to provide the half, viz, 250,000 taels; the provisional government is even ready to advance all the money needed, specially as in the beginning the expenses will be small, but will increase with the development of the works, with the understanding that it is to be repaid out of the funds raised by the commerce, shipping, and foreign concessions, all pecuniarily interested in the completion of the works. As the representatives of these interests have only consultative voices, the commission could choose among them a treasurer, and this would enable them to provide in an effective way that the funds are judiciously employed. It must not be overlooked that in the amount of indemnities claimed from China are some 126,000 taels for damage done to the works already executed for the improvement of the navigability of the river, although there seems to exist some lien on this item.

(3) Maintenance of the navigability of the river when all the works of improvement shall be completed. There is no urgency in this matter and it could be discussed later when the works are nearing completion. It is most certain that all the parties interested—commerce, shipping, and concessions—will not protest against slight dues which will guarantee them the free navigation of the river up to the concessions.

Therefore it was decided to call a meeting of all the members of the commission including those having a consultative voice, who are: The French consul, as president of the French municipal council; the chairman of the municipal council of the British and extra-British concessions; the consuls for Germany, Japan, Russia, Belgium, United States of America, as representatives of their respective concessions; the latter only if the project of the United States concession still holds good; the commanding officers at Tientsin of the Italian and Austro-Hungarian contingents, as representatives of the respective concessions occupied by them under orders from their respective legations; the chairman of the Tientsin general chamber of commerce, a representative of the shipping companies.

To this effect Mr. Ed. Cousins, of Messrs. Jardine, Matheson & Co., agents of the Indo-China Steam Navigation Company, the oldest shipping company trading at this port, has been requested to call a meeting of all the foreign shipping companies trading at this port and connecting Tientsin, Tongku, and Taku between them and with coast and foreign ports, to elect such a representative.

So as to avoid further misunderstanding and not to have to explain all the facts in full detail at the meeting, it has also been decided to draw up a memorandum as complete as possible, relating all that has happened. This memorandum to be sent to any member of the commission, including those with consultative voice, so that they may come to the meeting fully enlightened on the subject.

At a meeting called by Mr. Ed. Cousins, and held on May 11–23, the agents of the shipping companies elected as their representatives Mr. W. Fisher, of Messrs. Butter-field & Swire, agents of the China Navigation Company, Limited.

Tientsin, June, 1901.

1. Inclosed in Mr. Denby’s No. 2911 of April 13, 1898, to the Secretary of State. (W. R.)