File No. 893.631/4.

Chargé MacMurray to the Secretary of State.

No. 364.]

Sir: I have the honor to transmit herewith a copy of a note received from the Foreign Office in reply to my communication of July 23, a copy of which was enclosed with despatch No. 314 of the same date to the Department, in reference to the objections which the American Government raised against certain provisions of the Chinese Mining Regulations of March 11 last.

The reply thus communicated does not appear satisfactorily to dispose of the objections above referred to. Unless instructed to the contrary, however, the Legation will make no further rejoinder inasmuch as the objections are now a matter of record and the meetings of the Diplomatic Body, on which the acceptance of the Mining Regulations depends, have been indefinitely suspended on account of the present European War. The Legation has forwarded a copy of the enclosed reply to the Dean of the Diplomatic Body.

I have [etc.]

J. V. A. MacMurray
.
[Inclosure.]

Sir: I have the honor to acknowledge the receipt of your note No. 191 of July 23, 1914, in which you stated that you had received instructions from your Government in which objections were raised to Articles 94–105 and to Articles 86 and 87 of the Mining Regulations.

Upon receipt of this note this Ministry sent a communication to the Ministry of Agriculture and Commerce requesting a reply, which has now been received, as follows:

The “decision” referred to in Article 93 falls within the category of administrative settlements, and, being limited to disputes in mining affairs, is distinct from a legal decision. This has already been explained in a communication previously sent (see Diplomatic Circular No. 142). Furthermore, in accordance with clause 2 of Article 7 of the Detailed Regulations for Mining Enterprises the representative of a Chinese-foreign joint mining enterprise must be a Chinese. Therefore, in case there should be a dispute in mining affairs the punishments inflicted under Articles 93 to 105 would still be borne by a citizen of the Republic of China, would in no way affect foreigners, and would certainly constitute no violation of the principle of extraterritoriality.

[Page 139]

In regard to the provisions of Article 86, by which the employment and dismissal and the qualifications of the experts fall within the scope of the mine policing arrangements, the idea in drawing up this law was nothing less than to protect merchants engaged with limited capital in mining enterprises, who work for a small profit and who employ men improperly, thereby causing loss to themselves and to others. Educated and experienced engineers employed by large mines would be treated with the utmost respect by the Ministry and by the various supervision offices, who would not interfere with the arrangements for their employment and dismissal. This Ministry would not be very strict as regards the qualifications of experts of the kind referred to. The law regarding the policing of mines has now been drawn up. Problems of this sort are especially considered therein. The experts and advisers of this Ministry have gone over the law item by item as a precaution and not with the idea of framing excuses. After the law has been promulgated the matters in question will be clearly explained.

The provisions of Article 87 are the customary general provisions of all civilized countries; that is, when merchants are engaged in mining they must naturally assume the responsibility of guarding against danger. In case, however, within one year after the cancellation of the rights in a mining enterprise there should be no one succeeding thereto, and if at such a time unexpected dangers should occur, affecting injuriously either the life or property of the original owner or the safety of the holders of neighboring mining rights, under such circumstances if the original holder of the mining rights were not to take the responsibility, then upon the appearance of the danger who would be responsible?

But it is clearly stipulated in the article in question that “the provisions for precautions against danger shall continue to have force”; thus, after the cancellation of the rights in a mining enterprise, responsibility is confined to precautions against danger. Aside from this no other obligations will be incurred. Both Chinese and foreign mine owners will all keep the law equally and there will be no danger of discrimination.

It was requested that the above statement be transmitted to the American Legation.

I have the honor to state that as the articles referred to in the Legation’s note have been clearly explained in order by the Ministry of Agriculture and Commerce, there should be ho further misunderstanding on the points in question. I have the honor to request that you will be so good as to transmit the contents of this note to your Government. With compliments.

Seal of the Ministry of Foreign Affairs.