British Legation,
Peking,
July 11, 1914.
With reference to the Circular No. 84 of April 23, the Dean has the
honor to circulate herewith the translation of a note which he has
received from the Wai Chiao Pu in reply to his note of the 4th of
May last on the subject of the draft Mining Regulations.
Foreign Office,
Peking, July 8, 1914.
Sir: I have the honor to acknowledge
the receipt of your excellency’s note of May 4, stating that the
Mining Enterprise Regulations must be considered inadequate in
certain respects. You give particulars as to these and state
that the regulations should be modified in accordance with your
suggestions.
I wrote to the Ministry of Agriculture and Commerce in the matter
and have now received the following reply:
“It is observed, with reference to the statement in the
Dean’s note—that the cancellation of a mining right on
the two grounds that the mining enterprise injures the
public interest and that the plans and descriptions
given are not followed, is too indefinite and would be
an excessive penalty—that the words ‘injures the public
interest’ refer to an injury to the interest of the
whole community, such as injury to the public health or
to the peace of the locality where the mine is situated.
Investigation of the mining laws of every country shows
that such a provision is universal. Regarding the
question whether or not a mining interest injures the
public interest, the administrative officials should lay
down a proper fixed principle. The provision as to not
following the plans and descriptions given is inserted
with a view to the assistance of mining enterprise. If
owing to some natural calamity the necessity for
modification of the plans arises, it is of course
permissible for those who hold the mining right to
request a modification of the plans on the basis of
Article 56 of the Detailed Regulations. The
administrative officials will have absolutely no right
blindly to cancel a mining right without consideration
of the capital invested in it.
“As regards the statement that Article 93 contravenes the
rights of extraterritorial jurisdiction enjoyed under
existing treaties and should therefore be modified, it
is observed that the meaning of the word ‘settlement’ in
that article is an act of administrative government,
and, being limited to disputes in mining affairs, is
different to an exercise of legal jurisdiction. Looking
at the matter in the view of existing treaties, there is
nothing not consonant therewith.
“Turning to the statement that the provision that foreign
subjects are not to hold more than one half of the total
number of shares of the mining concern is not consonant
with the promise contained in the Treaty of 1903 between
China and Great Britain to the effect that foreign
capitalists shall not be placed at a greater
disadvantage than they would be under generally accepted
foreign regulations, I have the honor to observe that it
was also laid down in the Mining Regulations of the late
Dynasty that in joint Chinese and foreign enterprises
the capital should be half foreign and half Chinese; but
in addition there was a limitation as regards the shares
to be held by the landowner. The present Mining
Enterprise Regulations contain the same provision as the
old Regulations, but the limitation as regards the
landowner’s shares has been abolished. Thus the
treatment accorded to foreign merchants engaged in
mining enterprises is, as compared with the old
Regulations, on the most favorable footing. Moreover,
the provision as to half the capital being held by
Chinese and half by foreigners ensures that, as gains
and losses will be shared equally, there will be no
reason to fear that capital will be placed at a
disadvantage.”
The Ministry requests me to reply in this sense to your
excellency. In view of the above detailed explanation by the
Ministry of Agriculture and Commerce of the various points in
the Mining Enterprise Regulations raised by you, no further
misunderstanding should arise.
I have the honor to request you to transmit this reply to your
Honorable Colleagues.
I avail [etc].
