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"sphere of interest" (unless they be "free ports "), no matter to what nationality it may belong, and that duties so leviable shall be collected by the Chinese Government.

Third. They will levy no higher harbor dues on vessels of another nationality frequenting any port in such "sphere" than shall be levied on vessels of their own nationality, and no higher railroad charges over lines built, controlled, or operated within such "sphere" on merchandise belonging to citizens or subjects of other nationalities transported through such "sphere" than shall be levied on similar merchandise belonging to their own nationals transported over equal distances.

The policy pursued by His Imperial German Majesty in declaring Tsing-tao (Kiao-chao) a free port and in aiding the Chinese Government in establishing there a custom-house, and the ukase of His Imperial Russian Majesty of August 11 last in erecting a free port at Dalny (Ta-lien-wan) are thought to be proof that these powers are not disposed to view unfavorably the proposition to recognize that they contemplate nothing which will interfere in any way with the enjoyment by the commerce of all nations of the rights and privileges guaranteed to them by existing treaties with China.

Repeated assurances from the British Government of its fixed policy to maintain throughout China freedom of trade for the whole world insure, it is believed, the ready assent of that power to our proposals. It is no less confidently believed that the commercial interests of Japan would be greatly served by the above-mentioned declaration, which harmonizes with the assurances conveyed to this Government at various times by His Imperial Japanese Majesty's diplomatic representative at this capital.

You are therefore instructed to submit to His Imperial Japanese Majesty's Government the above considerations, and to invite their early attention to them, and express the earnest hope of your Government that they will accept them and aid in securing their acceptance by the other interested powers.

I am, etc.,

JOHN HAY.

Viscount Aoki to Mr. Buck.

[Translation.]

DEPARTMENT OF FOREIGN AFFAIRS,

Tokyo, the 26th day, the 12th month of the 32d year of Meiji, (December 26, 1899).

Mr. MINISTER: I have the honor to acknowledge the receipt of the note No. 176 of the 20th instant, in which, pursuing the instructions of the United States Government, your excellency was so good as to communicate to the Imperial Government the representations of the United States as presented in notes to Russia, Germany, and Great Britain on the subject of commercial interests of the United States in China.

I have the happy duty of assuring your excellency that the Imperial Government will have no hesitation to give their assent to so just and fair a proposal of the United States, provided that all the other powers concerned shall accept the same.

I avail myself, etc..

VISCOUNT AOKI SIUZO, Minister for Foreign Affairs.

No. 82.]

RUSSIA.

Mr. Hay to Mr. Tower.

DEPARTMENT OF STATE, Washington, September 6, 1899.

SIR: In 1898, when His Imperial Majesty had, through his diplomatic representative at this capital, notified this Government that Russia had leased from His Imperial Chinese Majesty the ports of Port Arthur, Ta-lien-wan, and the adjacent territory in the Liao-tung Peninsula in northeastern China for a period of twenty-five years, your predecessor received categorical assurances from the imperial minister for foreign affairs that American interests in that part of the Chinese Empire would in no way be affected thereby, neither was it the desire of Russia to interfere with the trade of other nations, and that our citizens would continue to enjoy within said leased territory all the rights and privileges guaranteed them under existing treaties with China. Assurances

August 11

of a similar purport were conveyed to me by the Emperor's ambassador at this capital, while fresh proof of this is afforded by the imperial ukase of July 30 last, creating the free port of Dalny, near Ta-lien-wan, and establishing free trade for the adjacent territory. However gratifying and reassuring such assurances may be in regard to the territory actually occupied and administered, it can not but be admitted that a further, clearer, and more formal definition of the conditions which are henceforth to hold within the so-called Russian 'sphere of interest" in China as regards the commercial rights therein of our citizens is much desired by the business world of the United States, inasmuch as such a declaration would relieve it from the apprehensions which have exercised a disturbing influence during the last four years on its operations in China.

The present moment seems particularly opportune for ascertaining whether His Imperial Russian Majesty would not be disposed to give permanent form to the assurances heretofore given to this Government on this subject.

The ukase of the Emperor of August 11 of this year, declaring the port of Ta-lien-wan open to the merchant ships of all nations during the remainder of the lease under which it is held by Russia, removes the slightest uncertainty as to the liberal and conciliatory commercial policy His Majesty proposes carrying out in northeastern China, and would seem to insure us the sympathetic and, it is hoped, favorable consideration of the propositions hereinafter specified.

The principles which this Government is particularly desirous of seeing formally declared by His Imperial Majesty and by all the great powers interested in China, and which will be eminently beneficial to the commercial interests of the whole world, are:

First. The recognition that no power will in any way interfere with any treaty port or any vested interest within any leased territory or within any so-called "sphere of interest" it may have in China.

Second. That the Chinese treaty tariff of the time being shall apply to all merchandise landed or shipped to all such ports as are within said "sphere of interest" (unless they be "free ports"), no matter to what nationality it may belong, and that duties so leviable shall be collected by the Chinese Government.

Third. That it will levy no higher harbor dues on vessels of another

nationality frequenting any port in such "sphere" than shall be levied on vessels of its own nationality, and no higher railroad charges over lines built, controlled, or operated within its "sphere" on merchandise belonging to citizens or subjects of other nationalities transported through such "sphere" than shall be levied on similar merchandise belonging to its own nationals transported over equal distances.

The declaration of such principles by His Imperial Majesty would not only be of great benefit to foreign commerce in China, but would powerfully tend to remove dangerous sources of irritation and possible conflict between the various powers; it would reestablish confidence and security, and would give great additional weight to the concerted representations which the treaty powers may hereafter make to His Imperial Chinese Majesty in the interest of reform in Chinese administration so essential to the consolidation and integrity of that Empire, and which, it is believed, is a fundamental principle of the policy of His Majesty in Asia.

Germany has declared the port of Kiao-chao, which she holds in Shangtung under a lease from China, a free port, and has aided in the establishment there of a branch of the imperial Chinese maritime customs. The imperial German minister for foreign affairs has also given assurances that American trade would not in any way be discriminated against or interfered with, as there is no intention to close the leased territory to foreign commerce within the area which Germany claims. These facts lead this Government to believe that the Imperial German Government will lend its cooperation and give its acceptance to the proposition above outlined, and which our ambassador at Berlin is now instructed to submit to it.

That such a declaration will be favorably considered by Great Britain and Japan, the two other powers most interested in the subject, there can be no doubt. The formal and oft-repeated declarations of the British and Japanese Governments in favor of the maintenance throughout China of freedom of trade for the whole world insure us, it is believed, the ready assent of these powers to the declaration desired. The acceptance by His Imperial Majesty of these principles must therefore inevitably lead to their recognition by all the other powers interested, and you are instructed to submit them to the Emperor's minister for foreign affairs and urge their immediate consideration.

A copy of this instruction is sent to our ambassadors at London and Berlin for their confidential information, and copies of the instructions sent to them on this subject are inclosed herewith.

I have, etc.,

Inclosures.

To London, September 6, 1899, No. 205, printed page 131.
To Berlin, September 6, 1899, No. 927, printed page 129.

JOHN HAY.

No. 761.]

Count Mourarieff to Mr. Tower.

[Translation.]

MINISTRY OF FOREIGN AFFAIRS,
December 18-30, 1899.

Mr. AMBASSADOR: I had the honor to receive your excellency's note dated the 8th-20th of September last, relating to the principles which

the Government of the United States would like to see adopted in commercial matters by the powers which have interests in China.

In so far as the territory leased by China to Russia is concerned, the Imperial Government has already demonstrated its firm intention to follow the policy of "the open door" by creating Dalny (Ta-lien-wan) a free port; and if at some future time that port, although remaining free itself, should be separated by a customs limit from other portions of the territory in question, the customs duties would be levied, in the zone subject to the tariff, upon all foreign merchandise without distinction as to nationality.

As to the ports now opened or hereafter to be opened to foreign commerce by the Chinese Government, and which lie beyond the territory leased to Russia, the settlement of the question of customs duties belongs to China herself, and the Imperial Government has no intention whatever of claiming any privileges for its own subjects to the exclusion of other foreigners. It is to be understood, however, that this assurance of the Imperial Government is given upon condition that a similar declaration shall be made by other powers having interests in China. With the conviction that this reply is such as to satisfy the inquiry made in the aforementioned note, the Imperial Government is happy to have complied with the wishes of the American Government, especially as it attaches the highest value to anything that may strengthen and consolidate the traditional relations of friendship existing between the two countries.

I beg you to accept, etc.,

COUNT MOURAVIEFF.

Instructions sent mutatis mutandis to the United States ambassadors at London, Paris, Berlin, St. Petersburg, and Rome, and to the United States minister at Tokyo.

DEPARTMENT OF STATE, Washington, March 20, 1900. Government having accepted the declaration suggested by the United States concerning foreign trade in China, the terms of which I transmitted to you in my instruction No.

SIR: The

of

and like action having been taken by all the various powers having leased territory or so-called "spheres of interest" in the Chinese Empire, as shown by the notes which I herewith transmit to you, you will please inform the Government to which you are accredited that the condition originally attached to its acceptance-that all other powers concerned should likewise accept the proposals of the United States having been complied with, this Government will therefore consider the assent given to it by as final and definitive.

You will also transmit to the minister for foreign affairs copies of the present inclosures, and by the same occasion convey to him the expression of the sincere gratification which the President feels at the successful termination of these negotiations, in which he sees proof of the friendly spirit which animates the various powers interested in the untrammeled development of commerce and industry in the Chinese Empire, and a source of vast benefit to the whole commercial world.

I am, etc.,

JOHN HAY.

Inclosures,

Mr. Delcassé to Mr. Porter (received December 16, 1899), translation.
Mr. Jackson to Mr. Hay, telegram, December 4, 1899.

Count von Bülow to Mr. White, February 19, 1900, translation.
Lord Salisbury to Mr. Choate, November 30, 1899.

Marquis Visconti Venosta to Mr. Draper, January 7, 1900, translation.
Viscount Aoki to Mr. Buck, December 26, 1899, translation.

Count Mouravieff to Mr. Tower, December 18, 1899, translation.

EXTENSION OF FOREIGN SETTLEMENT AT SHANGHAI.

No. 129.]

Mr. Conger to Mr. Hay.

LEGATION OF THE UNITED STATES OF AMERICA, Pekin, China, January 5, 1899. SIR: I have the honor to confirm, on the overleaf, my telegram of the 22d ultimo and the Department's reply of the following 23d.

Since July last the French have been trying to secure an extension of their settlement at Shanghai.

On August 24 Consul-General Goodnow wrote me that the French claimed in their settlement exclusive jurisdiction over persons and property of whatever nationality, and although this had never been conceded either by the English or Americans, and the question had not for many years come to an issue, yet as considerable American property was included in the proposed extension, the owners were quite anxious that their rights to trial under their own laws should be preserved.

I replied that the matter might be tested by an assertion of our treaty rights, etc., whenever a real case arose, but suggested that meanwhile he advise the property owners to place on file through him a protest, with the proper provincial officials, against being included in the extension, except upon some guaranteed reservation of their present rights of trial.

On November 19 Consul-General Goodnow wrote me that the French consul-general had agreed with him and the British consul-general "that he will not ask to have our land registered in his consulate; will not claim jurisdiction over persons or property of others than French; that no land or police regulations shall be adopted affecting the rights and privileges of our nationals without our consent."

Relying on this I made no protest, but on the 22d ultimo the English minister informed me that his Government had instructed him to protest energetically against any French extension that included Britishowned property without the consent of the British Government, and was anxious that I should do the same thing.

Believing, under the circumstances, that the objections of the English were mainly political, I wired as I did, so that if any communication on the subject had reached the Department from London, and it was thought wise or desirable to please the English in this matter, you could instruct me accordingly.

Since then I have received protests of the American landowners, merchants, and missionaries at Shanghai against having their property

All printed ante.

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