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NEUTRALITY OF CHINA IN THE WAR BETWEEN RUSSIA AND JAPAN.

Mr. Hay to Mr. Hardy.

[Telegram.-Paraphrase.]

DEPARTMENT OF STATE, Washington, February 10, 1904.

(Mr. Hay instructs Mr. Hardy to consult the Spanish Government in regard to the possibility and desirability of an arrangement between the neutral powers to use their good offices with Russia and Japan for the purpose of inducing them to respect China's neutrality and administrative entity as far as possible, limiting and localizing the area of hostile operations to minimize the disturbance and excitement of the Chinese people and the injury to commerce and to the peaceful intercourse of the world. If no opposition to this proposition is offered he is instructed to suggest that the representatives of Spain at St. Petersburg, Tokyo, and Peking be instructed in this sense.)

Mr. Hardy to Mr. Hay.

[Telegram.-Paraphrase.]

AMERICAN LEGATION, Madrid, February 13, 1904.

(Mr. Hardy reports that the desirability of localizing hostilities between Russia and Japan is in a general way approved by the Spanish Government, but the suggestion of the United States Government in regard to the neutrality of China is for the present considered incompatible with Spanish neutrality, and action by other powers will be awaited.)

Mr. Hardy to Mr. Hay.

No. 194.]

AMERICAN LEGATION, Madrid, February 13, 1904. SIR: I have the honor to acknowledge the receipt of your telegram of the 10th instant.

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I immediately called upon the minister for foreign affairs at his house and brought your suggestion to his notice. He promised to bring the subject before the council of ministers and to inform me at once of the result. Three days having passed without information, I called at the ministry to-day, and after some conversation in which it was apparent that the minister's view as above expressed had been confirmed, he requested me to inform you that for the present His Majesty's Government would not take any action beyond its declaration of neutrality; that to suggest the recognition by the belligerents of the neutrality of China might not seem to be in strict

conformity with the duties of Spain as a neutral, and that for the present Spain would await the action of the interested powers.

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(Concerning the neutrality of China in the war between Russia and Japan, Mr. Hay informs Mr. Hardy that action has already been taken by the Governments of Germany, France, and Great Britain.)

Mr. Hardy to Mr. Hay.

[Telegram.-Paraphrase.]

AMERICAN LEGATION, Madrid, February 16, 1904.

(Mr. Hardy reports that he has been informed by the minister for foreign affairs that before the Government of Spain can follow the example of the Governments of France, Germany, and Great Britain it must first be informed of the text of their adherence to the note of the United States Government.)

Mr. Hay to Mr. Hardy.

[Telegram.-Paraphrase.]

DEPARTMENT OF STATE, Washington, February 16, 1904.

(Mr. Hay informs Mr. Hardy that no formal text of adherence to the proposal of the United States has been adopted by the powers, but each of them instructs its representatives at St. Petersburg, Tokyo, and Peking in its own phraseology.)

Mr. Hardy to Mr. Hay.

[Telegram.-Paraphrase.]

AMERICAN LEGATION, Madrid, February 17, 1904.

(Mr. Hardy reports that the views of the United States Government, as expressed in Department's telegram of the 10th instant, are adhered to generically by the Government of Spain, but not to any concrete proposition in regard to the neutrality of China.")

a On this subject see circular of February 20, 1904, printed on p. 2.

SETTLEMENT OF THE CLAIM OF THE INTERNATIONAL OCEAN TELEGRAPH COMPANY AGAINST SPAIN.

Mr. Hardy to Mr. Hay.

No. 233.1

AMERICAN LEGATION,
Madrid, June 7, 1904.

SIR: Referring to my previous correspondence in the matter of the International Ocean Telegraph Company, I have the honor to report that on March 25 I wrote the minister of state that, having no explanation of the delay, I should feel obliged to ask for such on behalf of my Government, to obviate which I begged him to use his good offices with the minister of hacienda.

On May 20, having no answer, I made the following verbal representations to the minister: That it was now nearly six years since the debt was contracted; that nearly three years had elapsed since all the formalities exacted had been complied with; that such explanations of nonpayment as had been offered, while they might apply to a brief delay, were wholly inadequate to explain one of three years; that it must be remembered that the account was not a disputed claim but an admitted debt, and that whereas I had no hesitation in enforcing to the best of my ability the views of my Government in cases where differences of opinion existed, it was most unpleasant and embarrassing to be obliged to call his attention repeatedly to the nondischarge of an acknowledged obligation; that having, out of considerations of courtesy to himself, refrained from directly pressing the subject upon the attention of his colleague of the treasury, I felt he should urge upon the latter the necessity of a reply to the frequent inquiries addressed through the foreign office; and that, finally, I desired a settlement before my departure for the United States on leave.

The minister admitted the reasonableness of all I had said. He further said there was to be a council that evening and that he would bring the matter before the ministry at that time, promising to do all in his power to effect a settlement before I left Madrid.

On June 2 I received the note, of which a copy is inclosed, to the effect that by royal order of May 25 the amount due had been ordered paid at the rate of the official exchange of the day of issue of the order and on the basis of 5 pesetas to the dollar.

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I inclose herewith a copy of a letter from the Credit Lyonnais, together with first of exchange payable to "International Ocean Telegraph Company."

I have, etc.,

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ARTHUR S. HARDY.

[Inclosure.-Translation.]

Señor San Pedro to Mr. Hardy.

MINISTRY OF STATE,
Madrid, May 31, 1904.

EXCELLENCY: In reply to the polite note of the legation relative to the sum of $10,334.99, gold, owing to the International Ocean Telegraph Company, for official telegrams transmitted during the months of July. September, and October, 1898, in the island of Cuba, I have the honor to inform your excellency that

the minister of hacienda, in a royal order of the 25th instant, has given the necessary instructions to the director of the public debt to the end that the above-named sum, or its equivalent in pesetas, charged to the surplus funds of the special account of the suppressed section of ultramar in that department, be paid to your excellency at the rate of the official exchange of the 25th of the current month at the equivalent of 5 pesetas for each dollar.

I avail myself of this opportunity to reiterate, etc.,

Credit Lyonnais.]

[Inclosure 2.1

Mr. Michaud to Mr. Hardy.

F. R. SAN PEDRO.

MADRID, June 7, 1904. SIR: In virtue of your verbal order of this morning and exchange having gone lower, we have taken advantage of this opportunity to execute your order we were holding.

In consequence, we beg to remit you herewith first and second of exchange on New York for $10,003.46, order International Ocean Telegraph Company, making at the rate of 7.17 pesetas 71,724.85, with which we debit you in account. We remain, etc.,

W. MICHAUD,

Submanager.

Mr. Hay to Mr. Hardy.

DEPARTMENT OF STATE,

Washington, June 24, 1904.

SIR: I have to acknowledge the receipt of your No. 233 of the 7th instant, transmitting the first of exchange on New York to the order of the International Ocean Telegraph Company for $10,003.46, in payment of its claim against Spain.

I am, etc.,

JOHN HAY..

SWEDEN AND NORWAY.

TESTIMONIAL PRESENTED TO CAPTAIN HANS HOLM, OF THE NORWEGIAN STEAMSHIP BRATTEN, BY THE UNITED STATES.

Mr. Hay to Mr. Thomas.

No. 176.]

DEPARTMENT OF STATE, Washington, November 13, 1903. SIR: I transmit, through the dispatch agent at London, a gold watch and chain which the President desires to present to Captain Hans Holm, of the Norwegian steamship Bratten, in testimony of the humanity shown by him in picking up at sea the boats containing the master and crew of the shipwrecked American bark John R. Stanhope. You will forward the testimonial to the foreign office, with the inclosed form of receipt. The latter, when signed, should be returned to this Department.

I am, etc.,

JOHN HAY.

Mr. Thomas to Mr. Hay.

No. 343.]

AMERICAN LEGATION, Stockholm, January 18, 1904.

SIR: Referring to your instruction No. 176, of November 13, 1903, transmitting a gold watch and chain which the President desired to present to Captain Hans Holm, of the Norwegian steamship Bratten, in testimony of the humanity shown by him in picking up at sea the boats containing the master and crew of the shipwrecked American bark John R. Stanhope, I have the honor to inform you that I lost no time in forwarding this testimonial to the foreign office with a request that it be delivered to Captain Holm, and I now have the honor to return to you his receipt therefor duly signed and witnessed.

I have, etc.,

W. W. THOMAS.

CELEBRATION OF THE SEVENTY-FIFTH BIRTHDAY ANNIVERSARY OF KING OSCAR.

No. 345.]

Mr. Thomas to Mr. Hay.

AMERICAN LEGATION, Stockholm, January 21, 1904.

SIR: I have the honor to inform you that King Oscar and his people to-day celebrated His Majesty's seventy-fifth birthday.

In many of the cities and towns throughout Sweden and Norway the day has been observed with fitting ceremonies.

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