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the order of importance (Paragraph III) of the various matters to

be taken up.

Your dispatch under acknowledgment meets with this department's entire approval.

I am, etc.,

ALVEY A. ADEE,

Acting Secretary.

No. 177.]

The Acting Secretary of State to Minister Rockhill.

DEPARTMENT OF STATE, Washington, August 30, 1906. SIR: I have to acknowledge the receipt of your dispatch No. 353, of the 18th ultimo, transmitting correspondence with the consul-general at Hankow in regard to the regulations for governing the commercial settlement of Changteh Fu, in Honan, and your objections to some of them, and to inform you that your objections commend themselves to the department and are in accord with its telegram of May 8 last, directing that in discussing regulations for international settlements at Antung and Mukden the American agent object to irksome Chinese supervision and arbitrary municipal regulations.

If Americans are to secure proper treatment at Mukden and Antung, the best way to do so is to begin by insisting in every case that regulations which may become a precedent for future ports shall contain no objectionable features.

I am, etc.,

ALVEY A. ADEE,
Acting Secretary.

Minister Rockhill to the Secretary of State.

[Telegram-Paraphrase.]

PEKING, August 30, 1906.

(Mr. Rockhill reports that, notwithstanding constant pressure, he is still unable to get the Chinese Government to fix the date of opening customs at Antung or to take any action whatsoever looking to the establishment of customs anywhere in Manchuria; states that on the preceding Monday the British chargé d'affaires, by order of his Government, informed the Chinese Government that Newchwang should be made a free port until customs are established at all other localities in Manchuria. Mr. Rockhill inquires whether he shall make a similar demand. Little disposition to take action is being shown by the Chinese Government. Japan will not allow customs at Tarien unless they are established simultaneously on the frontier of Russia. Information has been received by Mr. Rockhill that the matter has not even been broached as yet to the Russian legation by the Chinese Government.)

The Acting Secretary of State to Minister Rockhill.

[Telegram-Paraphrase.]

DEPARTMENT OF STATE, Washington, August 30, 1906. (Referring to Mr. Rockhill's telegram of August 30, Mr. Adee instructs him to make demand in accord with British, which is understood to be that, until customs are established throughout Manchuria, no duties be levied at Newchwang.)

No. 385.]

Minister Rockhill to the Secretary of State.

[Extracts.]

AMERICAN LEGATION, Peking, September 3, 1906. SIR: Friday last (31st August), I called at the Wai Wu Pu and informed his excellency T'ang Shao-i that the department was of opinion that so long as customs houses were not established at Antung, Dalny, and on the Russian frontier of Manchuria where the railway enters and leaves Chinese territory, neither export nor import duties should be levied on foreign goods at Newchwang.

The argument that Dalny and Antung were opened to our trade on the same conditions as to the Japanese was worthless, for the houses which handled our trade were at Newchwang and our trade would continue to center there.

The suggestion now made by me that customs should not be levied at Newchwang was, I said, made chiefly in the interest of China. If this measure was adopted, both Japan and Russia would urge the prompt establishment of Chinese customs; any trade which had been driven away from Newchwang by the fact that Antung, Dalny, or Vladivostok were free ports, would come back to its old channelNewchwang-if this latter was not discriminated against.

His excellency said that the Newchwang customs were pledged to the powers for the Boxer indemnity, and that it would be impossible without the consent of all of them to suspend collections there. The advantages of Dalny were not only that it was a free port but the Japanese were charging freight rates between it and Mukden only one-half of that charged between Newchwang and Mukden. The suspension of the collection of duties at Newchwang would not help it.

The question establishing customs at Dalny was settled in principle; it only remained to secure an agreement with the Russians and Japanese and fix a date, but that each one wanted the other to act first.

I told him that the uncertainty in which the commercial world was placed as to the probable date when these arrangements would be carried out was particularly disturbing to trade. I thought he was now in a position where he could come to some understanding with Russia and Japan and fix a date for the opening of customs in Manchuria. If this were done, I felt sure that the anxiety of the commercial world would quickly subside.

His excellency said that it would certainly be accomplished by the 15th of next April-perhaps much sooner; but the date he mentioned that on which, under the Portsmouth treaty, the evacuation of Manchuria is to be completed-seemed the safest on which to count. Referring to Antung, he said his Government could not establish customs there; there was literally no ground on which to do so, as the Japanese had taken possession of every foot of suitable land. I have, etc., W. W. ROCK HILL.

Minister Rockhill to the Secretary of State.

[Telegram-Paraphrase.]

PEKING, September 3, 1906.

(Mr. Rockhill reports that he is assured by the Chinese foreign office that it is doing everything in its power to settle the Manchurian customs question promptly.)

No. 395.]

Minister Rockhill to the Secretary of State.

AMERICAN LEGATION, Peking, September 12, 1906.

SIR: I have the honor to inclose herewith, for the information of the department, copies of two notes from the foreign office stating (1) that Mukden, Antung, and Ta-tung-kou, and also (2) T'iehling, T'ung-chiang-tzu, and Fa-ku-men have been opened to international

trade.

I have been verbally informed at the foreign office that these two notes are merely formal statements that the above cities are now open to foreign trade, and that later on the special arrangements as to customs, etc., will be perfected.

I have already informed the American consul-general at Newchwang of the receipt of the inclosed notes.

I have, etc.,

W. W. ROCKHILL.

[Inclosure 1-Translation.]

The Prince of Ch'ing to Mr. Rockhill.

FOREIGN OFFICE, Peking, September 5, 1906.

YOUR EXCELLENCY: The twelfth article of the commercial treaty between China and the United States and the tenth article of the commercial treaty between China and Japan provide for the opening to international trade by China herself of the city of Mukden, the district of Antung, and the port of Ta-tung-k'ou.

My board has repeatedly telegraphed to the superintendent of trade for the north and the Tartar general of Shengking to make all necessary arrangements for the opening of these places, as the records will show.

Now the superintendent of trade for the north and the Tartar general of Shengking have jointly memorialized the Throne, stating that since Antung and Ta-tung-k'ou have been made open ports, it is necessary to establish the maritime customs at Antung, to be known as the Antung customs, and that the taot'ai of the Eastern Marches will be superintendent of customs; that, as Ta-tung-k'on is but several tens of li distant from Antung, it will not be necessary to establish a separate customs station there, but that it should be a branch station of the customs at Antung and under the control of the customs taot'ai of that port.

As in duty bound, therefore, I communicate this for your excellency's information.

A necessary dispatch.

(Signed)

PRINCE OF CHING,

[Inclosure 2-Translation.]

The Prince of Ch'ing to Mr. Rockhill.

FOREIGN OFFICE, Peking, September 10, 1906.

YOUR EXCELLENCY: It is provided in the first article of the supplementary treaty between China and Japan with regard to the three Manchurian provinces that as soon as the troops occuping Feng-tien should be withdrawn the following places, Feng-huang-ch'eng, Liao-yang, Hsin-min-tun, Tieh-ling, Tungchiang-tzu, and Fa-k'u-men, should be opened voluntarily by China as places of international trade.

It now appears that the Japanese troops have already been withdrawn from the three places-T'ieh-ling, T'ung-chiang-tzu, and Fa-k'u-men-and, as required by the treaty, steps should first be taken to open them to international trade. As in duty bound, therefore, I send this dispatch to your excellency for your information.

A necessary dispatch.

(Signed)

PRINCE OF CH'ING.

The Acting Secretary of State to Ambassador Wright.

No. 31.]

DEPARTMENT OF STATE, Washington, September 20, 1906.

SIR: I have to acknowledge the receipt of your dispatch No. 45, of the 11th ultimo, concerning the open door in Manchuria and the importance of the establishment of customs-houses there.

The department entertains the confident hope that the good disposition evidenced by Japan will tend actively to the early adjustment of all these commercial questions in Manchuria.

I am, etc.,

ALVEY A. ADEE.

The Acting Secretary of State to Ambassador Meyer.

No. 174.]

DEPARTMENT OF STATE,
September 20, 1906.

SIR: I inclose a copy of a dispatch from the embassy at Tokyo, in regard to the open door in Manchuria, in which special reference is made to the necessity for the establishment of customs-houses in that region.

You are requested to represent to the Russian Government the importance the United States attaches to the early establishment of Chinese customs-houses on the line of the Chinese Eastern Railway. I am, etc.,

ALVEY A. ADEE.

The Acting Secretary of State to Minister Rockhill.

[Telegram-Paraphrase.]

DEPARTMENT OF STATE, Washington, September 27, 1906.

(Mr. Adee asks what action has been taken concerning customs at Newchwang, in pursuance of department's telegram of August 30.)

"Dispatch No. 45, printed on p. 217.

Minister Rockhill to the Secretary of State.

[Telegram-Paraphrase.]

PEKING, September 28, 1996. (Mr. Rockhill reports that he duly made representations concerning the suspension of customs at Newchwang. The foreign office replied, as shortly before to the British legation, that it was impossible to act as requested, the revenue from the Newchwang customs being pledged to the powers. Mr. Rockhill states that representations by the British and himself have hastened the general settlement of Manchurian customs. He is informed by the Russian minister that the latter's Government will agree shortly to the proposals telegraphed to the department September 3 by Mr. Rockhill. The Japanese are hastening a settlement of the Tairen customs.)

No. 195]

The Secretary of State to Minister Rockhill.

Department of State, Washington, October 4, 1906. SIR: I have to acknowledge the receipt of your telegram of the 28th ultimo, reading as follows: "

You will continue pressure for the customs-houses, and you will inform the Chinese Government that the demand as to Newchwang will be renewed with increased emphasis if the present condition is allowed to continue.

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SIR: Under the general provisions of Article II of the treaty of December 22, 1905, between China and Japan, a joint stock company composed of Chinese and Japanese capitalists was to be organized for the exploitation of the Manchurian railways which had been ceded by Russia to Japan.

A Japanese imperial ordinance (No. 142, June 7, 1906) sanctioned the organization of the South Manchurian Railway Joint Stock Company, and Article III provided that shares of the company "shall all be registered and may be owned only by the Japanese and Chinese governments or by subjects of Japan and China."

Under the terms of Article V of the article of incorporation of this company, which fixed the amount of the first subscription of shares at 20,000,000 yen, the Chinese Government was duly asked to subscribe, and was informed that the subscription closed on the 5th of October (yesterday). I am informed that the Chinese Government has not taken any portion, however small, of the shares offered it, nor have the Chinese subjects subscribed, so far as I can learn.

a Supra.

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