After carefully considering the question of securing the revision of the
mining regulations issued by the Chinese Government in March, 1904, and
ascertaining that my British colleague, under instruction from his
government, was pressing the matter, I decided, under the previous
instructions of the Department given Mr. Conger, to take the matter up
with the Waiwu Pu and to urge upon it a prompt consideration of the
question.
I inclose herewith copy of the note which I have addressed to the foreign
office on this matter.
[Inclosure.]
Minister Rockhill to Prince
Ch’ing.
Your Highness: In a note written April 15,
1904, my predecessor, Mr. Conger, had the honor to call your
highnesses earnest attention to the fact that the revised mining
regulations which had received the imperial approval on the 17th of
March, 1904, could not be accepted by the Government of the United
States as satisfactory or as fulfilling the provisions of Article
[Page 235] VII of the treaty of
1903. This article specifically states that China shall “recast its
present mining regulations in such a way as, while promoting the
interests of Chinese subjects and not injuring in any way the
sovereign rights of China, will offer no impediment to the
attraction of foreign capital nor place foreign captialists at a
greater disadvantage than they would be under generally accepted
foreign regulations.”
The regulations of March 17, 1904, were not in harmony with these
provisions of our treaty, and Mr. Conger therefore felt constrained
to make known to your highness the disappointment which our
government would feel at their being put into force.
Eighteen months have now elapsed since Mr. Conger wrote to your
highness on the subject in the hope that the Chinese Government
would revise the regulations in question and make them practicable
for industrial and commercial purposes. As, however, no amended
regulations have, so far as this legation is aware, been issued
since those of March, 1904, I trust that your highness will pardon
me if I revert to this important subject and submit in detailed form
the objections which my government finds to these regulations.
The regulations of March 17, 1904, are 38 in number. Our principal
objections refer to numbers 3, 4, 16, 24, and 29.
Regulation No. 3 is objectionable in that it does not specifically
provide the proceeding necessary to obtain a permit to prospest or
mine upon private property in a case where it is impracticable to
obtain the owner’s consent. This, in a country so densely populated
as China, is a question of great importance.
Regulation No. 4, subdivision (b), in that it
requires applicants for permits composed of Chinese and foreigners
to disclose the exact number of shares held by the foreigners,
appears to be framed with the evident intention to prevent the
operative control of any mining undertaking or enterprise by foreign
capitalists, such as is contemplated by the treaty, and thus tends
to discourage instead of to attract foreign capital.
Regulation No. 16 prevents practically the issuance of a permit to
prospect or work a mine in China in any case where a majority of the
stock is owned by foreigners. It is believed by my government that
the conditions insisted upon in this regulation constitute
impediments such as would cause a foreign capitalist to decline to
embark his means in any enterprise hampered by such unsatisfactory
conditions.
This regulation again distinctly repels rather than attracts foreign
capital, and is therefore not in harmony with treaty
stipulations.
Regulation No. 24, wherein it is provided that the applicants must
commence operations within six months from the date on which the
permit shall have been granted, does not meet the conditions under
which foreign capital is placed. Necessarily in the beginning the
mines to be operated would be far from base, and six months would be
too short a time for the commencement of operations on the
ground.
Regulation No. 29 is extremely vague and objectionable in that every
important contract necessary in the practical mining operations is
to be delayed and impeded by the submission thereof to the board of
commerce for its action thereon, and possibly its nullification.
There are many other objections which my government has noted in
these regulations. I attach to this note a detailed list of
them,a calling your earnest attention to the fact
that, whereas the regulations of 1903 are based on those of 1898 and
1902, comparison shows that the features which most obviously
contravene the treaty of 1903 are taken therefrom and the
modifications made are nearly everywhere contrary to the spirit of
this treaty rather than in accord with it.
This matter is one of great importance, and the Chinese Government
itself has recognized “that it is advantageous for the country to
develop its mining resources and that it is desirable to attract
foreign as well as Chinese capital to embark in mining enterprises.”
I feel therefore convinced that your highness will give the views of
my government prompt and careful consideration, and, since the
object of such regulations is to attract and not repel foreign
capital and enterprise, take steps at an early date to have the
mining regulations for the Empire made to thoroughly harmonize with
the provisions of your treaty with us of 1903.
I avail myself of this opportunity, etc.,
