File No. 1571/3–5.
I inclose herewith a copy of the reply of the senior consul to the dean.
I consider the reply as fairly satisfactory, but it demonstrates the
necessity of carefully watching the work of the conservancy board to
prevent future complications and possible delays.
The periodical reports which the senior consul is requested to make to
the diplomatic body on this question will, it is hoped, prove of value,
and contribute to expediting the work and insuring strict compliance
with the terms of the agreement of September 27, 1905.
[Inclosure 2.]
The Consul General for
Belgium and Senior Consul of the Shanghai Consular
Body to the Dean of the Diplomatic
Corps at Peking.
Consulat General de Belgique,
Shanghai, 20
August, 1907.
Excellency: In pursuance of my letter of
the 6th instant I have the honor to reply as hereunder on the points
submitted in your letter of the 6th June:
I. Have the works been carried out with diligency, care, and
economy?
The works have been carried out till now by the staff of the board
with diligency, care, and economy, so far as the consular body is in
a position to judge and so far as the said staff has been allowed to
go on with the work. It seems to the consular body that the board
does not come to its decisions with enough promptitude, which can
only be explained by the impression under which labors the tao-t’ai,
that he must ask advice of his superiors on any question of
importance. The spirit of the convention gives to the board full
powers to act without outside advice.
II. Are the measures which the Chinese Government has adopted for
financing the enterprise such that its requirements are and will be
satisfactorily insured?
If the Chinese Government understands that it is obliged by the
convention to pay all the costs of the works, even if the amount
required is more than twenty times 460,000 taels, the question “how
exceptional high and extraordinary expenses above the annual payment
of 460,000 taels shall be covered” will have to be settled between
the foreign powers and the Chinese Government as soon as the
engineer decides that such extraordinary expenditure is
required.
III. In view of the possible reduction of the opium revenue, has any
information been given you by the Chinese authorities concerning an
additional guarantee for annual payments for the works?
In anticipation of the decrease in opium revenue the Shanghai
tao-t’ai has already petitioned the imperial Government to
appropriate money from other sources of revenue to make up possible
losses.
IV. Have the monthly installments been regularly paid to the Shanghai
tao-t’ai and the commissioner of customs and since what date?
From the quarterly report for June quarter it appears that the
tao-t’ai has written to his codirector, Mr. Hobson, customs
commissioner, that remittances on conservancy accounts commenced to
reach him in July, 1904, and that the same total of 3,460,000
haikwan, 1,380,000 taels has reached him on the 1st July, 1907; that
the balance of the money not expended, taels 1,124,743, is deposited
in various banks under the responsibility of the tao-t’ai. The
consular body is writing under this date to the board pointing out
that the monthly installments should be put, according to the
convention of 27 September, 1905, Article X, “entre les mains du
tao-t’ai et du commissaire des douanes de Shanghai,” that is to say,
in the hands of the Whangpoo Conservancy Board.
V. Where are the funds deposited, and how and by whom are they
drawn?
The consular body does not know, but it is pointing out to the board
that the funds ought to be deposited in the name of the board in one
of several banks, in one of which a current account should be opened
on which money could be drawn by the joint directors or their
delegate.
VI. What interest is allowed on monthly balances of these funds and
to what purpose is such interest applied?
The June quarterly report shows that the interest account made up at
the end of the fifth moon, current year (July 5, 1907), stands at
116,854.90 taels, but no details are given concerning the rate of
interest or to what purpose said interest is to be applied. The
consular body is of the opinion that this interest should be
supplied to the works of the conservancy scheme, and is writing in
that sense to the board.
VII. By whom are the annual accounts of the conservancy board
audited?
The consular body thinks that such auditing should be done by an
auditor to be appointed by the board.
The consular body has also considered these questions:
- (A)
- Who is to provide for the always rather expensive
maintenance of the works? And answers that the Chinese
Government must provide for it, but is of opinion that the
question should not be raised now.
- (B)
- To what purpose should the proceeds from sale or lease of
reclaimed land be applied? And answers to the conservancy
work, and is writing in that sense to the board.
- (C)
- The consular body is also of the opinion that the normal
lines as described and settled by the board on the advice of
the engineer must be respected and observed by the riparian
owners.
- (D)
- The question of who should be in charge of the bunding of
the river along private properties is also of great
importance, and has also been considered by us, but the
Shanghai Chamber of Commerce, having appointed a committee
composed of the principal riparian owners to study the
question, it is perhaps advisable to await their report
before taking further action.
I have, etc.,
