File No. 1571/24–25.

Chargé Fletcher to the Secretary of State.

No. 1271.]

Sir: I have the honor to acknowledge the receipt of the department’s instruction No. 625 of the 23d August, last (file No. 1571/19–21) on the subject of the Whangpoo conservancy.

I have the honor to inclose copy of the aide mémoire which was presented to the Chinese Government by the committee of ministers representing the diplomatic body mentioned in my last dispatch on this subject. No formal reply from the Wai-wu Pu has been received, but I was yesterday informed by Mr. Liang that China did not intend, after spending the enormous sum she has already laid out, to allow it all to be wasted by a suspension of the conservancy works and consequent silting up of the channel. He said they had given orders to the taotai at Shanghai to continue the dredging and also to make a full report on the situation, so that the Chinese Government will be in a position to make an intelligent decision as to the future.

In discussing the matter with my colleagues I have taken the ground that China should not be forced to guarantee this additional expenditure without opportunity to consider the whole question, especially since orders have been given that dredging operations be continued.

I gathered from my conversation with Mr. Liang that, while China felt that she entered into the agreement of 1905 under a misapprehension of the financial burdens involved, she would prefer to proceed even at the great additional cost now estimated rather than allow foreign participation. It is quite natural, in view of past experiences, that China should desire to know definitely just how much more money will actually be needed for this work and what will be the results obtained.

The extreme attitude of the Shanghai community and consular body is not reflected in the diplomatic corps here, where there is a disposition to allow China time to consider the question fully, provided the work is not allowed to go backward meanwhile.

I have, etc.,

Henry P. Fletcher.
[Page 85]
[Inclosure.]

memorandum.

His highness, the president, and their excellencies, the ministers of the Waiwu Pu, have taken careful notice of the successive progress of the works in connection with the straightening and the improving of the Whangpoo executed in the course of the last two years under the direction and the control of the conservancy board by their engineer in chief and in accordance with the agreement passed on the 27th of September, 1905, between the Chinese Government and the representative of the signatory powers of the final protocol of 1901.

They have also learned that these works have had the good result of deepening and widening the navigable channel of the Whangpoo in the Junk Channel, named provisionally since the passage of the Astrea the Astrea Channel, to such an extent as to permit the conservancy board to open this channel to general traffic during the day since the 1st of July last and also during the night since the 15th of September.

In order to be able to continue the necessary works for the completion of the amelioration work of the above-named river in all its parts from the mouth to beyond the Chinese city and the simultaneous closing of the ship channel, the consular body of Shanghai has submitted to the diplomatic corps a report from the engineer in chief dated the 9th of August, 1909, giving full and completeparticulars of the expenses still to be incurred in order to attain this result. A second report has been submitted by the same engineer with the object of showing the financial conditions together with a table showing the division of the expenses spread over the five years still necessary to complete the work.

From these documents it is shown that this work will entail a further sum of $7,898,820 Mexican, increased by $1,470,000 Mexican for salaries and further general expenses, making a grand total of $9,368,820 Mexican.

Not included in this sum is certain work of clearing away in the upper part of the harbor, at the spot where there is a mudbank which should be dredged away, but which would undoubtedly reappear as long as access to this part is not forbidden to the innumerable Chinese junks, boats, houseboats, and rafts of wood and bamboo which are in the habit of anchoring there, and whose owners should, in case this part was dredged, be compensated and indemnified.

According to these above-named reports the division of the estimated expenses by Mr. de Ryke for the work of dredging, training, etc., will be as follows:

For the first year to July 1. 1910 $2,000,000
For the second year to July 1, 1911 1,670,000
For the third year to July 1, 1912 1,670,000
For the fourth and fifth years to July 1, 1914 2,558,820

To the total of these sums should be added for general expenses and salaries above mentioned the sum of $294,000 per year; total, $1,470,000.

At the same time the diplomatic body has been informed by the conservancy board that the funds set aside for this purpose till the 1st of April, 1909, are exhausted, and that it is absolutely necessary to find in the shortest time possible the sum of $1,000,000 in order to pass the first contracts.

The representatives of the signatory powers of the final protocol are pleased to think that the imperial Government is aware, like ourselves, of the absolute necessity and of the extreme urgency of continuing this work in order that the benefits obtained may not be lost.

They have, therefore, the honor to ask His Imperial Highness Prince Ching, and their excellencies the ministers of the Waiwupu, in what way the imperial Government of China—which has engaged itself by the final protocol in a general way to undertake the improvement of the Whangpoo, and by the agreement of 1905 to alone defray all the expenses—proposes to provide for all future expenditure for this work and to meet the immediate needs referred to above.