No. 173.
Mr. Angell to Mr. Blaine.

No. 201.]

Sir: In my No. 186, I inclosed a copy of a communication to Prince Kung, stating, in compliance with the request of the ministers of the foreign office, my objections to the proposed concessions to the Northern Telegraph Company. That communication was sent in on July 17.

Having occasion to visit the foreign office on July 29 on other business, I took occasion to ask if they had received from the viceroy any reply to my communication which they had forwarded to him. They said they had, and that there was no intention of preventing the landing of a cable from America. When I asked whether there would be any obstacle to landing a cable which should touch at Japan, they hesitated, but expressed the opinion that the viceroy would arrange for that in some way. They promised to send me a paper upon the subject.

After waiting more than a week, I sent Mr. Taylor, acting interpreter, [Page 293] to inquire when I could expect the promised paper and to explain my desire for it by assuring them of the profound interest my government feels on the subject. The next day I received the communication, a copy of which I inclose.

I think you, will agree with me in the opinion that it is a feeble, shuffling evasive, and entirely unsatisfactory document. Nothing could be more unworthy of the viceroy’s vigorous mind than the passage extracted from his letter.

I may properly say in this connection that while awaiting this reply from the Tsung-li Yamên, I had the statement from one of the telegraph company’s officers that the Tsung-li Yamên assented to the monopoly scheme before the viceroy entered into it. They assured me at the outset that the viceroy made the arrangement without consulting them. I am sorry to believe that there has been a deal of prevarication somewhere in this business.

Deeming it desirable to commit the ministers on paper to whatever they are willing to promise, I addressed to Prince Kung a series of questions, which I inclose. A reply, which I inclose, was sent me on the 14th inst.

The whole agreement for which I had asked was not sent to me, but only the second article, which the viceroy said he feared had been mistranslated. When I say that the article was exactly as I had it in my copy, further comment on this part of the transaction seems unnecessary.

My question whether the agreement has received imperial sanction is evaded, but I am informed that the viceroy has sanctioned it.

The answers to my third and fourth questions amount to this, that when an American company wishes to lay a line from America to China, “an arrangement” can be made for the line, but the foreign office cannot inform me what that arrangement is to be.

My question as to whether if the viceroy Li promises to make an arrangement for the American cable, his successor will be bound by the promise in case of the viceroy’s death—a question which the prince criticises—was asked because all through our interviews and correspondence the ministers have carried the idea that Li Hung Chang had managed the business with the Northern Telegraph Company, and would see to it in some way that a door was left open for an American cable to enter China. As the language used about “an arrangement” has been so vague, it is quite possible that a successor of Li Hung Chang might not consider himself so bound by these indefinite promises as to overcome any special difficulties in order to accommodate us.

On a visit to the Tsung-li Yamên on the 16th, I asked whether the “arrangement,” which was to be made for the American cable, contemplated the payment of money to the Northern Telegraph Company. The ministers (their excellencies Mao, Wang, Ch’ung Li, and Hsia being present) very emphatically assured me that it did not. They reiterated the assurance that the viceroy would complete the arrangement whenever the American company should be ready.

I told them that the plan was a less generous one than I had expected from this govermnent, but that without pursuing the discussion of the subject further at present, I should report to my government.

In this interview, as in previous interviews, the ministers sought to convey the impression that the whole of this telegraph business is in the hands of the viceroy, Li Hung Chang. No doubt this is substantially true, and although the present adjustment (if it can be so called) of the question is not what we could wish, it is probable that when an [Page 294] American company is ready to lay a cable the viceroy will enable the company to land and work the wire without too onerous conditions.

Though the results of my labors on this subject are far from satisfactory, I trust it will prove that my efforts have not been altogether in vain, and that my course will meet the approval of the Department.

I have, &c.,

JAMES B. ANGELL.
[Inclosure 1 in No. 201.]

Prince Kung to Mr. Angell.

Referring to the proposed telegraph arrangement between the northern superintendent of trade and the Great Northern Telegraph Company, your excellency has had several consultations with us on the subject, and lately you sent us a communication setting forth three points wherein the arrangement was of doubtful expediency for China herself. We sent a copy of your dispatch for Li Chung T’ang’s consideration and have received a reply from him in which he says with regard to the three points (of doubtful expediency):

  • “‘1st. * * * In case of war between some western nation and Denmark or China the northern company’s lines might be destroyed, and China would lose telegraphic connection with the world.’ * * * ‘In case of war with any foreign power, the ports of China would be blockaded, and if the cable is cut at sea it will be no great damage to China.’
  • “‘2d. China cuts herself off from constructing land lines to Foochow, Canton, and other points in the south.’ * * * ‘There is no such language in the second article of the general rules; I fear it must be an error of translation.’
  • “3d. The agreements made between the Great Northern Telegraph Company and France and Russia, and the general rules to which sanction has been given in this case are in the main very much alike in this case. Moreover the said company have only begged that their request be granted, but no agreement has been made which can be likened” (to a contract), &c.

The viceroy having thus clearly stated his views on the foregoing three points, it would seem that no disadvantage is likely to result to China.

The request made by the Great Northern Telegraph Company has special reference to their cable already landed in China. If your country (i. e. any American company) proposes to lay a cable across the Pacific Ocean to China, it will of course not come under these rules. Your dispatch also says the Danish company has never proposed to lay a line between America and China. This is true. A line from America to China would be a different route. The northern and southern cables of the Great Northern Telegraph Company are lines from China to Europe and are different from an American line. If hereafter an American company lays a cable from San Francisco via the the Sandwich Islands to Japan it can, in no way, concern the Great Northern Telegraph Company; but when a cable from Japan to China is contemplated it will be well to communicate in advance with this office that we may write to the viceroy Li who will order the Great Northern Telegraph Company to consult thereon and make a compromise. It never was intended, as your dispatch intimates, to make a compromise, by treating the Danish company generously to the exclusion of an American company.

Peking, August 7, 1881.

[Inclosure 2 in No. 201.]

Mr. Angell to Prince Kung.

I have the honor to acknowledge the receipt of your imperial highness’s communication of the 7th instant, concerning the telgraph question. If I venture to trouble you again on the subject, I beg you will believe that it is only because of the great importance to the United States of a proper settlement of the question.

Permit me then, to make a few further inquiries, as briefly as possible.

1st.
Since in the viceroy’s reply to me, embodied in your communication, it is stated [Page 295] that my copy of the second article of the agreement is incorrect, may I ask if you can properly furnish me with a correct copy of the agreement?
2.
May I ask whether the agreement has yet received imperial sanction, and so is definitely settled.
3.
Am I to understand that an American company, notwithstanding the arrangement of the Chinese Government with the Northern Telegraph Company, is at liberty to lay a line when it chooses, directly from America, or from the Sandwich Islands to China. I understood the ministers of the Tsung-li Yamên, to say so in my last interview with them.
4.
I do not understand clearly, what is meant by your statement: “When a cable from Japan to China is contemplated, it will be well to communicate in advance with this office, that we may write to the viceroy Li, who will order the Great Northern Telegraph Company, to consult thereon and make a compromise.”

Am I to understand this as an assurance that some arrangement will certainly be made, by which the American company can continue its line from Japan to China? If so, may I ask what is the nature of the arrangement? And if unhappily the viceroy Li should die, is his successor held to the same promise, provided this is a promise.

With sentiments of the most distinguished consideration,

I am, &c.,

JAMES B. ANGELL.
[Inclosure 3, in No. 201.]

Prince Kung to Mr. Angell.

I have the honor to acknowledge the receipt of your excellency’s letter concerning the telegraph question, in which you ask a few farther questions on certain points wherein this business is of the greatest importance to your government.

In answer to your first inquiry, viz, “Since the viceroy replies that my copy of the second article of the agreement is incorrect, may I ask you to furnish me with a copy of the agreement?” We send herewith for your inspection a copy of the second article of the company’s petition.

2d. These general rules have been sanctioned by the viceroy Li in compliance with the petition of the Great Northern Telegraph Company.

Your third question is, “I gather from the purport of your communication that an American company, notwithstanding the arrangement of the Chinese Government with the Northern Telegraph Company, will be allowed to lay a cable when it chooses, directly from America, or from the Sandwich Islands to China. I beg you to say clearly if this is your meaning.”

In answer we have to say, if hereafter an American company proposes to lay a cable from America to China, as this is a different route (from those of the Great Northern Telegraph Company), a compromise can be made.

Again you ask “* * * if this is an assurance, may I ask what is the nature of the arrangement?” As your country does not propose just now to lay a cable, we have nothing on which to propose a mode of arrangement. But, as we have distinctly stated in our former letter that there is no intention to cause disappointment to an American company, therefore when the time comes a satisfactory arrangement can certainly be reached after consultation.

Finally you ask, “If unhappily the viceroy Li should die, is his successor held to the same promise?” We cannot help saying this is being too particular. In all questions of intercourse between China and foreign countries, it is the propriety or otherwise of a question that is considered, without reference to whether the official who originally deliberated the question be in office or be succeeded by some one else.

We send this special reply with compliments.