Minister Rockhill
to the Secretary of State.
[Extract.]
American Legation,
Peking,
China, January 18,
1906.
No. 200.]
Sir: With reference to my No. 177 of December
23a, transmitting a copy of
the “New Chinese Mining Regulations,” together with my protest to the
foreign office against the enforcement of the provisions of Regulation
VII, I have the honor to inclose herewith a copy of Prince Ch’ing’s
reply to the above protest.
The reply states that the regulation in question was made to prevent
people from making such private sales among themselves as would lead to
fraudulent practice, and that it in no way conflicts with the commercial
treaty between the United States and China. It further states that “if
American citizens, in accordance with Article VII of the
American-Chinese commercial treaty, make application for permission to
open mines, it shall be the duty of the local Chinese officials to
delimit the concession and consult with the owner of the property as to
the price to be paid.”
I am still of the opinion that Article VII of the Provincial Mining
Regulations is open to the objections made, but with this dispatch as a
commentary the objection is lessened, since Americans will be allowed to
purchase with the approval of the officials.
As the original mining regulations require all applicants first to obtain
a prospecting permit and later a permit to mine, the officials have all
foreign applicants under their control, so that the addition of the
above Regulation VII can work no greater hardship to Americans than
before, provided the official interpretation is kept in mind. From the
new explanation given, the rule is evidently intended to protect Chinese
of other provinces than that in which the mining lands in question are
situated.
But even under this interpretation it still remains true that Americans
can not buy mining lands from private owners, except through the
Government officials.
It is important that the department have the inclosed explanation on
file, as the official interpretation of Article VII of the new mining
regulations.
I have the honor, etc.,
[Inclosure 1.]
The Prince of Ch’ing
to Mr. Rockhill.
Peking, January 10,
1906.
Your Excellency: I have the honor to
acknowledge the receipt of your dispatch of December 23 calling my
attention to the new mining regulations by which provision is made
for the establishment of provincial bureaus of inspection. In
referring to Article VII of these regulations, which says that
“property belonging to the people may only be sold to a native of
the district in which it is located,” your excellency said: “I need
hardly remind your highness that this clause of the regulations is
in direct conflict with the provisions of the treaty of 1903 between
the United States and China, wherein it is distinctly
[Page 263]
stated that China ‘will
permit citizens of the United States to carry on in Chinese
territory mining operations and other necessary business relating
thereto, etc.,’ and that the new regulations to be adopted by China
‘will be imposed by China on its subjects and foreigners alike;’ it
is further stated that the new rules ‘will offer no impediment to
the attraction of foreign capital.’ Inasmuch as this regulation
forbids the purchase by foreigners of mining lands owned by private
individuals, it prevents the investment of American capital in such
lands and refuses to citizens of the United States the permission
allowed to Chinese subjects to carry on mining operations in China
except on lands belonging to the Government.” For the reasons stated
above your excellency felt it your duty to protest against the
enforcement of Rule VII.
In reply I have the honor to state that upon receipt of your
excellency’s communication my board communicated at once with the
board of commerce with regard to the matter, from whom the following
reply has now been received:
“With regard to the new mining regulations in which provision is made
for the establishment of provincial bureaus of inspection and the
seventh article of these regulations, which says that ‘property
belonging to the people may only be sold to a native of the district
in which it is located,’ we have to state that this provision was
made to prevent the people from making such private sales among
themselves as would lead to fraudulent practice, the falsifying of
names, etc. The natives of a district know well all the history of
the land in their own neighborhood, and will not be easily deceived,
so this special restriction upon private sales forbidding the sale
of land to any but natives of the district was imposed in order to
prevent corrupt practices and the defrauding of wealthy families. If
American citizens, in accordance with the seventh article of the
American-Chinese commercial treaty, make application for permission
to open mines, it shall be the duty of the local Chinese officials
to delimit the concession and consult with the owner of the property
as to the price to be paid, that there may be no fraud or other
corrupt practices in the premises, it will not be necessary to act
in accordance with Article VII of the regulations regarding the
provincial bureaus of inspection.
“Take, for instance, Article III of the original regulations drawn up
by this board. It says: ‘If the mining land in question be a place
which the Government ought to develop, the officials must buy the
land at a fair valuation, and the owner must offer no opposition.’
Now, if the American minister says that private mining property may
only be sold to natives of the district in which it is situated, how
about these mines which the Government must develop? Can they be
sold to none but natives of the district? If the two sets of
regulations be considered together and compared, it will be evident
that the seventh article of the regulations, relating to provincial
bureaus of inspection, in no way conflicts with the commercial
treaty between the United States and China, as the two refer to
different things. This board has now explained the matter in such
detail that his excellency the American minister can not be mistaken
again in regard to it.”
The above communication having been received by my board, it becomes
my duty to transmit it herewith for your excellency’s
information.
A necessary dispatch.
