future, no sale of mines or of any interest in mines to foreigners, and no loan from foreigners on the security of mines, will be recognized as legally valid. In view of extra-territoriality, it will be difficult to induce foreigners to accept such legislation, and Consular Courts will not readily admit its validity. But, as the example of extra-territoriality in Japan shows, such matters depend upon the national strength; if the Powers fear China, they will recognize the validity of Chinese legislation, but if not, not. In view of the need of rapid development of mining by Chinese, it would probably be unwise to nationalize all mines here and now. It would be better to provide every possible encouragement to genuinely Chinese private enterprise, and to offer the assistance of geological and mining experts, etc. The Government should, however, retain the right (a) to buy out any mining concern at a fair valuation; (b) to work minerals itself in cases where the private owners fail to do so, in spite of expert opinion in favour of their being worked. These powers should be widely exercised, and as soon as mining has reached the point compatible with national security, the mines should be all nationalized, except where, as at Tayeh, diplomatic agreements stand in the way. It is clear that the Tayeh mines must be recovered by China as soon as opportunity offers, but when or how that will be it is as yet impossible to say. Of course I have been assuming an orderly government established in China, but without that nothing vigorous can be done to repel foreign aggression. This is a point to which, along with other general questions connected with the industrializing of China, I shall return in my last chapter.
It is said by Europeans who have business
