In your dispatch you say:

"I have carefully studied the regulations and the agreement. In many places they are contrary to the provisions of the fourteenth article of the French treaty of 1858. A reading of these regulations will show that a monopoly has been established of the trade. For instance, article 5 of the regulations forbids all persons from engaging in the manufacture of camphor unless they first apply to the board and receive a permit. All camphor manufactured, as well as the residuum, are to be sold to the board at the rate it fixes, the manufacturers being forbidden to sell their camphor to other persons."

These regulations have been approved by his excellency the viceroy and are intended to prevent the unscrupulous Chinese from cladestinely manufacturing or selling camphor. This is within our duty to do and can not be termed a monopoly. "By article 8 all foreign merchants are required to buy the camphor from the board at its fixed price."

It is never intended by these regulations approved by the viceroy to prohibit the foreign merchants from purchasing camphor. As prohibited by the treaties, they can not engage in the manufacture of any kind in the interior. If they buy camphor and manufacture it in a treaty port, they are free to do so. Do you call this monopoly?

"Article 4 provides that the expert shall fix the price.

"Under these circumstances foreign merchants can only buy camphor from the officials and have to submit to the exactions of the board and pay the exorbitant price. Thus great inconvenience will be experienced. That this is a Government monopoly, and not an individual, makes no difference."

As regards the fixing of the price by the expert, it is because the Chinese method of manufacturing camphor has not reached its perfection. To introduce a better method, the expert has to attend to the manufacture, classify the goods, and fix the price of each in order to prevent unscrupulous Chinese from seeking clandestine markets and smuggling, who are unable to tell the quality of their goods. When the price is fixed the foreign merchant can buy or sell camphor accordingly. I can see no inconvenience in this matter and can not see how this will constitute a monopoly. "British merchants shall be free to purchase camphor."

This is always permitted, and I do not propose to stop it.

"And they can buy it of the Chinese, like other native produce, without hindrance whatever."

According to articles 6, 7, and 8 of the French treaty, they are required to pay duty at the custom-house and likin at the station, and "it is expressly forbidden to them to trade elsewhere on the coast in search of clandestine markets under pain of confiscation of both ships and goods used in such operation.”

In short, I establish this board in compliance with the instructions received from the viceroy. The regulations are all made to prevent the unscruplous Chinese from seeking clandestine markets or engaging in smuggling. On what ground do you suppose this to be a monopoly, and what evidence have you to support your allegation?

"According to the provision of the treaty you should take steps to dissolve and prevent the existence of such monopoly. How can the Chinese officials establish a monopoly themselves?”

The French Government in negotiating this clause had no doubt in its mind other people who were thought to be likely to come and control the trade; hence it was provided that in such cases the Chinese officials should take steps to prevent the existence of such companies.

The facts in connection with the establishment of the camphor board do not warrant the application of this theory.

By establishing the camphor board the Chinese Government seeks to educate the Chinese people in its manufacture and such an action can not be termed a monopoly. There are monopolists in China, and this may account for your apprehension that we are monopolists. Nevertheless, it requires proof to show that we are such as you allege. The article you quote has nothing to do with the camphor board and can not be applied to this case.

No. 574.]

Mr. Hay to Mr. Conger.

DEPARTMENT OF STATE,

Washington, October 13, 1902.

SIR: I have to acknowledge the receipt of your dispatch No. 1067, of August 11 last, inclosing a copy of all the correspondence between

you and the consul at Amoy in relation to the monopoly of the camphor trade in the province of Fuhkien granted by the Chinese Government to a Japanese subject.

Your representations to the consul on the subject appear to have been discreet.

MY DEAR MR. Wu: Referring to our conversation a few day ago concerning the protection of subjects of China by the consul-general of the United States at Panama, I take pleasure in inclosing copy of the most recent instruction" to the consul-general on the subject, in which reference is made to previous instructions addressed to his office. As was stated in the course of our conversation, these instructions authorize the consul-general to use his good offices in behalf of Chinese subjects in the absence of a diplomatic or consular representative of China in Colombia.

In case you should desire the instructions repeated to the consulgeneral, it will give me much pleasure to comply with your request. I am, etc.,

Mr. Wu to Mr. Adee.

ALVEY A. ADEE.

CHINESE LEGATION, Washington, August 20, 1902.

MY DEAR MR. SECRETARY: I beg to acknowledge the receipt of your note of the 16th instant, inclosing a copy of the most recent instruction of your Department to the United States consul-general at Panama in regard to the protection of Chinese subjects on the Isthmus. You are good enough to offer to repeat to the consul-general the previous instructions of your Department on the subject. Inasmuch as the failure of Chinese subjects on the Isthmus to receive lately the desired protection has been due to the supposed want of instructions from your Department, I shall be glad if you will kindly repeat the instructions to the United States consul-general at Panama, so that there will be no misunderstanding in this regard in the future. If there is not too much trouble, I should like to have the United States minister to Colombia duly informed of this arrangement, so that, in case his attention is called to it, he may act accordingly. Thanking you for your kindness, etc.,

WU TING-FANG.

a Not printed. See correspondence on same subject with Colombia, p. 318.

ADMISSION OF CHINESE INTO CUBA.

Mr. Wu to Mr. Adee.

No. 254.]

CHINESE LEGATION, Washington, August 20, 1902. SIR: Having received reliable reports from the Chinese consul-general in Habana, Cuba, I beg respectfully to bring to your attention, and through your Department to the attention of the President of the United States, the peculiar condition in which the Chinese have been left in the island of Cuba by the action taken by the military governor just before the authority of the United States was withdrawn.

Some months after the United States assumed the control of affairs in the island of Cuba, that is, on April 14, 1899, the Secretary of War, under the authority of the President, by order No. 13, Division of Customs and Insular Affairs, issued a decree declaring that the laws and regulations of the United States governing immigration were to be in effect in the territory under government by the military forces of the United States. In accordance with that order the immigration laws and regulations of the United States became effective and were put in force in the island of Cuba. But these laws and regulations did not include those of the United States relating to the immigration and exclusion of Chinese, and notwithstanding said order No. 13, the Chinese of all classes were freely admitted into Cuba during the entire period of the military control of the United States without restriction, as had been the case under the régime of the Spanish Government.

In such state the immigration of Chinese into Cuba continued until five days before the United States relinquished its control of the affairs of that island, when, on May 15, 1902, Gen. Leonard Wood, military governor of Cuba, issued an order declaring the reenactment and continued enforcement, pending such action as the Congress of Cuba might take thereon, of the laws relating to immigration, "which," he says in his order, "have been in force in Cuba since April 14, 1899, by authority of the President's order adopting and making effective in Cuba the provisions of the immigration laws of the United States.' This declaration or order is followed by what are termed "laws regulating immigration," which are in substance the provisions of the laws and regulations of the United States relating to immigration. But at the end of this compilation there are added two sections (Secs. VII and VIII), which are not found in the immigration laws of the United States, and the provisions of which had not been enforced under order No. 13, of April 14, 1899, referred to by General Wood as that which he purposed to reenact. The language of these two sections bear evidence of haste or want of care and legal deliberation in their preparation, so that it is somewhat difficult to understand in all respects just how they are to be enforced. But their effect is to absolutely prohibit the immigration of Chinese of any class, except diplomatic officers.

The result of this action of General Wood, taken just on the eve of the surrender of American control, is to put in operation against the Chinese a law which had not before been in force in Cuba and which is much more severe and restrictive than the provisions of the Chineseexclusion laws of the United States.

I can not believe that such was the deliberate intention of General Wood. I can not think that he could with premeditation sully the close

of his career in Cuba by an act so unreasonable, so unjust, and so inhumane. From the manner in which the two sections are found in the publication in the Official Gazette of Habana I am inclined to believe that they have been inserted without his knowledge or without his realizing the effect they would have. Why should he, as one of the last of his official acts, decree such a harsh law, when during the four years of American rule in Cuba it had not been found necessary? And if at the last hour he had discovered that such provision was required, would he not as a prudent governor have deferred the subject for the action of the Cuban Congress which was immediately to convene? And even if he had at the last moment become convinced that some provision as to Chinese exclusion ought to be adopted by himself, notwithstanding for a half century this race had been free to come to Cuba, could he have surely reached the conclusion that a law should be enacted more severe and drastic than that in force in the United States? For these and other reasons which might be stated I have become satisfied that the military governor has taken this action unwittingly, or that he has been deceived in some way into an act which neither he nor his Government upon deliberation can approve.

The difficulty now is that the newly organized Government feels that, in view of the manner in which the order was adopted as one of the last acts of the American authorities, it would not be warranted in taking any steps to modify or repeal the enactment. As a consequence, the order is making hardships which could not have been anticipated. Chinese persons who left China without any notice of the order, relying upon the previous liberty of ingress, have been refused admittance into Cuba, notwithstanding the earnest appeals of the Chinese consul-general. No provision was made in the order for notice in advance of putting the prohibitory sections into effect. Hence hundreds of Chinese who have made the long journey are refused admittance, and must return to China, and among them are persons who under the existing laws would be admitted into the United States.

The action of General Wood in this matter is quite contrary to the practice of his own Government. When the United States found it desirable to restrict Chinese immigration, its Government consulted in a friendly spirit with the Government of China, and arranged by treaty the manner in which such restrictions should be enforced, thus respecting the dignity of the nation and saving the immigrants from undue hardships. But in the present case, the American military governor, without any consultation with the Chinese authorities, issued a cruel and arbitrary decree, inaugurating in Cuba a prohibitory law, where before no restriction had existed, and fastening upon the new Republic a system, which out of regard for the nation whose representative created it, it does not feel at liberty to repeal. This action, taken in disregard of diplomatic practice and international comity, has placed the young Republic at the outset of its existence in hostility to the Chinese Empire, and in such a manner that the unwise act can not be undone without the advice and consent of the Government of the United States.

It is not possible that General Wood could have consulted the President of the United States before issuing his decree, because his action is contrary to the policy and practice of the United States under similar circumstances, as I have indicated, and because the President would

not approve of a decree which was more severe in its provisions than the laws of the United States.

The decree, as already mentioned, prohibits all Chinese immigration into Cuba, and yet the laws of the United States allow merchants, students, teachers, travelers for pleasure, etc., to come to this country. Neither could General Wood have received the approval of the President of his order, because the President has been distinguished during his public career for profound wisdom and a high sense of justice.

I regret that it has become my duty to enter in the Department of State the protest of my Government against this action of General Wood. But in doing so, I desire to ask you to be so kind as to bring the subject to the attention of the President. I have such confidence in his upright character and his hatred of injustice as to believe that if the matter is laid before him he will be able to devise some means to have it rectified. And although American control has been withdrawn in Cuba, his relations with the government of that island are so friendly and intimate that he will find a way to secure from that Government a modification or repeal of the decree which works so grievous a wrong to Chinese subjects, and is so much in disregard of the dignity of the Chinese Government.

For more convenient reference, I inclose herewith a copy of order No. 13, and of General Wood's reenactment of it.

Accept, etc.,

[Inclosure 1.]

WU TING-FANG.

CIRCULAR No. 13,

DIVISION OF CUSTOMS AND

INSULAR AFFAIRS.

WAR DEPARTMENT, Washington, April 14, 1899.

The following is published for the information and guidance of all concerned: The laws and regulations governing immigration to the United States are hereby declared to be in effect in the territory under government by the military forces of the United States, and collectors of customs are directed to enforce said laws and regulations until the establishment of immigration stations in said territory. All money collected under this order must be deposited and accounted for as prescribed for customs collections. G. D. MEIKLEJOHN, Acting Secretary of War.

SECTION VII. None of the foregoing paragraphs shall apply to Chinese persons, the immigration of whom is prohibited, and during such prohibition it shall not be lawful for any Chinese laborer to come from any foreign port or place to Cuba.

The master of any vessel who shall knowingly bring to Cuba on such vessel, and land or attempt to land or permit to he landed, any Chinese laborer, meaning both skilled and unskilled, shall be guilty of a misdemeanor, and on conviction thereof shall be punished by a fine of not more than $500 for each and every such Chinese laborer so brought into Cuba, and may also be imprisoned for a term not exceeding one year.

Any Chinese person found unlawfully within Cuba shall be caused to be removed therefrom to the country whence he came and at the cost of Cuba, after being brought before some judicial officer or tribunal in Cuba and found to be one not lawfully entitled to be or to remain in Cuba, and in all such cases the person who brought or aided in bringing such person to Cuba shall be liable to the Government of Cuba for all necessary expenses incurred in such investigation and removal, and