Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 3, 1888, Part I

No. 221.
Mr. Denby to Mr. Bayard.

[Extract.]

Legation of the United States,
Peking, July 20, 1888. (Received September 11.)

No. 670.]

Sir: I have the honor to report as briefly as possible the important incidents of the tour of inspection lately made by me to the divers ports in China.

I returned to Peking July 6, having been absent since April 28.

I embarked in the Juniata, Lieutenant Commander W. T. Burwell, commanding, May 11, at Shanghai. The first port touched at was Amoy.

Mr. Crowell is an energetic and efficient consul. His office was in excellent condition.

I invited Mr. Crowell to accompany me to Formosa.

Kelunq, Formosa.—We dropped anchor at Kelung May 19. The harbor of Kelung is good. The ship declined the services of a pilot and sailed in by charts and anchored at about the middle of the harbor. As soon as we cast anchor a salute of twenty-one guns was fired by the fort. The Chinese flag was run up at the peak and twenty-one guns fired in return.

The Chihsien, or local magistrate, soon called, followed by the prefect and the general of the troops. The shore was decorated with great numbers of Chinese banners, and military companies were drawn up behind them.

The visiting officials informed me that the governor, Lin Ming Chuan, had sent chairs and bearers for the party, and had arranged for boats and other chairs at Si-Kow to convey us to the capital city, Taipeifu.

The next morning, May 20, we left the ship. I was accompanied by Consul Crowell, Captain Burwell, Lieutenants Wood, Usher, Chapin, Herbert, Dr. Ogden, and the second secretary. We were received on shore with a salute of three guns, the usual Chinese salute, by a company of soldiers and by the prefect and local magistrate. There are about 10,000 people in the various villages around the bay of Kelung.

The houses are small, one story, built of brick. The streets are about 8 feet wide. There were some respectable looking stores with foreign goods displayed, but the general appearance of the people and locality was one of great poverty. The people are much smaller than the northern Chinese, but seemed to be larger than the people of Amoy. Just outside the village of Kelung are the quarters of the general. In passing I returned his call. He received me with the usual salute, a display of soldiers, and gave me tea and wine.

The coal mines at Kelung.—The chief article of export is coal. The mines now worked, and considered available to supply a demand, lie in the hills to the east of Kelung. The mines are worked by the governor. They supply but a limited quantity of coal per diem. During the attack made by the French in 1884 the Chinese authorities flooded the shaft, and at present it is not entirely cleared and ready for work. When in working order the government mines, as at present developed, are reckoned capable of supplying about 200 tons of coal per day, but the available amount of coal can, perhaps, be considerably increased by using the output from coal seams worked by private persons. A number of such veins exist.

In quality the Kelung coal is said to be somewhat similar to Takasima or Karetse coal (Japan coal), though inferior to either of them. Analysis of this coal has been had from time to time, showing an improvement in quality as the vein is developed. At present there is but a limited demand for Kelung coal. The Douglas, Lapraik & Co.’s steamers use a mixture of one-half Kelung coal and one-half better quality from other sources of supply. These steamers run from Tamsui to Hong Kong and points on the coast. The Juniata took 30 tons of this coal at Kelung while there. It was of the best quality available, several grades having been shown to the officer who selected the coal. This coal was found to burn freely and gave about 9 per cent, ash, being about equal to Australian coal of good quality. Kelung coal was also found at the pagoda anchorage, Foo-Choo, where 70 tons were taken by the Juniata. This proved to be of very poor quality.

In general terms, this coal may be said to be fair steaming coal when of the best quality, and it is to be presumed that the quality will improve as lower levels of the coal veins are reached. The coal veins vary from 18 inches to 3 feet in thickness, and have a dip of 18 degrees to 20 degrees, and are worked in the usual manner. Mr. Matheson, an Englishman, has charge of the mines.

Railroads in Formosa.—Kelung is the northern terminus of the projected system of railways. The Kelung mountain is now being tunneled. A railroad is at present under construction designed to eventually communicate with the chief towns of southern Formosa. At present it extends from Kelung on the north as far as Changhwa, reckoned about 100 miles.

The surveys were made under the direction of English engineers brought out for the purpose. The labor is furnished by the governor from the troops at his disposal, and the material is procured by contract with foreigners, after competition in price and quality. The part of the line between Taipeifu and Kelung, 20 miles in length, is to be equipped by German firms. The southern end of the road from Taipeifu to Chang-hwa, 80 miles in length, is to be equipped by Jardine, Matheson & Co. It is rumored that the course of the road conforms rather to arbitrarily selected localities than to the present importance of some of the towns. There is projected but one station between Kelung and Taipeifu, that at Si-kow. The gauge of the road is to be 36 inches. The tunnel at Kelung, which extends over 1,000 feet through the mountain, is not completed. As soon as it is finished the laying of the rails will be commenced.

The grading and ballasting of the road as far as Chang-hwa is completed. There remain yet some bridges to be erected. Some of the rails have been delivered at Kelung, but the greater part, together with the rolling stock, have not arrived.

At present the authorities engaged in the work expect to have the road in working condition in a year, but many of the foreigners resident in Formosa declare this to be impossible, and set the time as at least two years more.

As this railroad is designed to enhance the importance of Kelung, in addition to other directions of usefulness, it will probably somewhat diminish the prosperity of Tamsui. The residents of Tamsui, however, assert that other trade, chiefly tea, must pursue its present channels, as handling by railroad would be too rough for the chests.

It is to be seriously regretted that Messrs. Russell & Co. failed to secure the contract for building this road. The Americans did not or could not successfully compete with the German and English prices, though they presented the excellence of American products in the most attractive light. It was an error not to put the offers for the job at a rate low enough to secure it. If even there had been little or no profit, the prestige resulting from success would have very much increased American influence in Formosa. All this is well understood now, but it is too late.

It is possible that a thorough development of the coal mines and the use of the railway may make Kelung a successful rival of Amoy, and may very much depreciate the importance of that city. As matters now stand, nearly the entire tea crop of Formosa goes to the United Spates. This tea is carried to Amoy, a distance of 200 miles across the Formosa Channel. The transit is often dangerous by reason of the typhoons. The tea is then loaded on steamers destined to New York. If ships could secure coal in Kelung, and load there for New York, a transit of 400 miles would be saved. The governor entertains these views and looks to Kelung as a rival to Amoy in the future.

The port of Kelung has attracted the attention of the British admiral as a coaling station. He visited the port and examined the coal, and it is said that his opinion was favorable.

From Kelung to Twatutia.—The trip from Kelung to Twatutia is novel and interesting. After crossing the Kelung Mountains in chairs, or afoot, a branch of the Kelung River was reached. There boats awaited our party and in them we floated down the rapids between high hills and through picturesque gorges. There were long reaches of nearly still water and the progress was slow. Five hours after embarking we reached Si-kow. There we were carried ashore on the backs of men, the boats being unable to touch the bank. A great crowd of people had assembled to look at the foreigners. We were escorted to a large room and tea was handed us. We then took chairs again and proceeded along the bed of the railroad to Twatutia.

Taipeifu.—The new seat of government is Taipeifu. Here lives Lin Ming Chuan, the governor, under whose progressive direction the vast improvement in Formosa has been made. It is a new city, sparsely built up. It is surrounded by a stone wall about 25 feet high, measuring 1 mile around the city. The ground was originally a paddy-field. Owners of lots are now compelled to improve them in two months or sell them. The streets are laid out in foreign style, about 40 feet in width. The improvements are uniformly of brick. The city is lighted with the electric light. There are 20 large and 100 small lights. The governor’s Yamên is lighted with electricity.

There are cable lines of telegraph running to Sharp’s Peak, near Foochow, which is the nearest point on the main-land, being about 100 miles nearer than Amoy. The cable is landed at Tamsui, which is 10 or 11 miles from Taipeifu. The telegraph line was completed to Kelung the 29th April of this year.

Near the city is an arsenal, at which arms and ammunition are made. There is a saw-mill, with modern imported machinery, which is now engaged in doing work for the railroad. Patent saw-mills have been imported for sawing great trees, with which the mountainous portions of the island abound. A school for teaching English has been started, which is attended by the governor’s sons.

The jinrickshaw has been imported from Japan, and numbers of them convey passengers from Taipeifu to Twatutia.

The governor has ordered, through Messrs. Russell & Co., two fast and commodious passenger steamers. They are to carry freight and passengers to Shanghai, Tien-tsin, and thence back to Tamsui. There will be considerable competition in shipping with the established lines, which will reduce freights. Up to this time the English line of steamers has done the most of the carrying. Something has been done by German steamers.

All these improvements are mainly due to the pertinacity and progressive spirit of the governor. The Imperial Government has stood off and let Lin Ming Chuan have his way.

Possibly the Emperor desires in this distant island to test the modern schemes before embarking in them in China proper, or, more probably, the Imperial Government is awake to the value of Formosa as an outpost of the Empire, and is willing that the most energetic measures may be taken to secure protection to it.

Twatutia.—Twatutia is the residence of the foreigners. It is a third of a mile from Taipeifu. Here are the great hongs owned by representatives of several nations, engaged almost exclusively in the tea trade. Here the Russells have machinery for firing tea, the only machinery so used in China. The usual process is to dry the tea in baskets over pans of charcoal.

All the processes of curing and packing tea are done here with wonderful expertness. The wood for the boxes is imported from Amoy, but they are made in Twatutia. The process of making the lead boxes which line the wooden boxes is simple and effective. The lead in bars is melted in a crucible. When melted it is dipped out and poured between two stones on which there is a coating of felt. The stones are pressed together by hand and immediately opened and a thin leaf of lead is made. The leaf is cut into proper shapes and put inside the boxes. A man will make 1,000 sheets a day. The boxes are painted by hand.

I saw the process of making scented tea. Great piles of the white jasmine flower are put on the tea while it is being fired and then removed.

Twatutia numbers about a dozen foreigners, with a Chinese population of some thousands.

The Russells have a fine building, where my party were handsomely entertained by Mr. Frank Cass, the head of Russell & Co. at Amoy. There are several fine buildings in process of erection. The existing improvements ordinarily are in Chinese fashion and are plain. Of course no English community is without a club. The one at Twatutia numbers thirteen members, including the absent and present. The club extended the usual hospitalities to us.

Messrs. Boyd & Co. have introduced at Twatutia silk worms and the manufacture of silk may become important, but it is now in its infancy.

Interviews with the governor.—On my arrival the governor sent cards. I notified him that I would call the next day, if agreeable to him. He immediately answered that he would see me.

The governor’s Yamên is new, like the rest of the city, but on the general plan of such buildings. On either side of the main gateway were nondescript pieces of statuary, half dog and half dragon.

On the main gate were the usual pictures of Chinese gods.

The governor received me at the inner gates as I got out of my chair. I was attended by the officers I have mentioned, who were in full uniform.

The governor is fifty-three years old, is hale and hearty. He is a soldier, plain and blunt.

I said to him that I thanked him for his various courtesies to me since my arrival in Formosa and that I would take pleasure in reporting to my own Government and to the Tsung-li Yamên how handsomely and hospitably I had been received.

He said that my country and his had always been friendly and it afforded him great pleasure to see me; that I was the only foreign minister that had ever come to Formosa.

I said that the relations between Formosa and the United States were close; that we were her nearest neighbors, except Japan; that we took nearly all her tea; that having heard a great deal of the progress he was making in Formosa I desired to see the island.

He said he had done a great deal, but not as much as he wanted to do, because he was hampered for funds.

I then said I was gratified to know that some of our citizens had contributed to the progress and had been of some service in developing the island. He said that Russell & Co. had been of great service to him, and that Mr. Cass was a good man.

I said I was glad to know that the consul at Amoy had maintained friendly relations with him. He said yes, that the public business had always been satisfactorily attended to by Mr. Crowell.

Previous to this time I had introduced Captain Burwell to the governor, and the captain had presented the other officers to him.

I said that I supposed he had never before seen the American uniform, and I hoped he would never see it except on a peaceful occasion. He said China and the United States had always been friendly, and China would not permit any other relation than that of friendship to exist.

We were then escorted into a room in which a table was spread with the usual fruits and confections. Tea was brought to the governor, who received the cup in both hands and placed it at the plate of each guest. The governor first raised the tea to his lips and we did the same.

I was seated on the governor’s right and the others in the order of rank. Wine was poured into the glasses. I proposed the governor’s health, which was drunk standing.

A desultory conversation followed. The governor invited us to dinner at an hour to be fixed, according to Chinese fashion, by ourselves. Four p.m. the next day was agreed upon.

Before leaving I asked the governor to give me an interview in which I might talk to him about business matters. He agreed to do so. He was throughout exceedingly cordial and frequently expressed his pleas ure at seeing a minister in Formosa. He offered to put at my disposal a house for the officers, but this was declined.

On my return to my quarters the chief of the foreign office called. He has been in office during twenty-eight years in Formosa. He spoke in the friendliest manner of the United States, as, in fact, all the officials do, and I believe honestly. I returned this gentleman’s call next day and was handsomely received and entertained. All the Taotais and local magistrates also called on me.

The governor returned my call in the afternoon. He was preceded by two officers and followed by a company of soldiers. He was placed on my right and I handed him a cup of tea with both hands. He told us about the aborigines; said they were to be found about 40 li (13 miles) from Twatutia; that he had conquered and subdued them. Parties of these savages are occasionally brought in and held a while, and clothed and turned loose, but the mass of them are as untamed as ever. They very much resemble our savages. They waylay and murder Chinamen whenever they can.

The general drift of our conversation was railroads. He made many inquiries about the system in the United States, and I explained it to him. He especially desired to know whether the Government built the lines, and was much interested in my explanation of the system in the West of voting aid to railroads by taxation. He inquired also as to the European situation and the probability of war. He was not well posted on foreign subjects, but, from occasional newspapers furnished him by the Russells, his acquaintance with such topics was above the average of Chinese officials. I renewed my request for a business interview at which he and I and the consul should alone be present. He seemed disinclined to regard my visit in any light but one of courtesy and friendship. I explained to him that when I formed the purpose of visiting Formosa I did not know of the pendency of any claim in Formosa in which my countrymen were interested, but that traveling in an official capacity, it was my duty when any matter of business affecting my countrymen was brought to my attention to properly consider it.

He conceded that this view was correct. I was with him two hours the next day discussing this matter. It was briefly this: The Russells had, more than a year ago, recovered judgment at Taiwanfu against a defaulting compradore for $40,000. There had been great delay in collecting the money.

He was anxious to demonstrate that there had been no negligence. He and I and the consul argued the question for two hours on one occasion and afterwards for three hours on another.

May 22 I and my companions dined with the governor. The dinner was partly Chinese and partly foreign. There were foreign wines in abundance and much jollity. The governor proposed the health of the President of the United States. I proposed the health of the Emperor and Empress of China. The governor brought his son, aged eighteen, into the dining-room and had him adopt my son as his elder brother, according to Chinese fashion. He gave frequent accounts of his life. He is a soldier, and not one of the literati. He was in the army at an early age and, at eighteen, commanded a company during the Taeping rebellion. He was not in much favor at court, and after the rebellion was put down he was left during fourteen years in obscurity. During the French war he was called to command in Formosa. He bought arms and ammunition with his own money. He defeated the French at Tamsui and saved the island.

He was exceedingly friendly to me personally and profuse in his professions of friendship to the United States. He expressed his intention to send me a large invoice of the finest tea, but this was declined with the statement that my Government did not permit its officials to accept presents from foreign officials.

The sulphur springs in Formosa.—Leaving Twatutia at 11 a.m. on the 23d of May, in a steam-launch, kindly loaned by the governor (and having a small boat in tow for landing or crossing the shoals in case we grounded), we proceeded down the Tamsui River 5 miles to mouth of the Kelung, and thence up the latter river about 3 miles.

Here we disembarked at a small landing on the right bank, and struck out on foot in a northeasterly direction, along the embankments of the paddy fields, for the distant hills, far up the side of which we could see the rising vapor from the sulphur springs, the object of our visit.

About 2 miles across the dead level of the rice fields we passed through several villages and the ascent began.

By rocky and difficult paths we commenced to climb. As we advanced we found that cultivation followed; every available spot was made to do duty. The rocky hill sides were covered with the pine-apple plant, more favored spots with the tea shrub, while the steepest declivities were terraced with narrow shelves from top to bottom, and on these ledges were growing flourishing crops of the universal cereal, rice. The vivid green of the rice, just beginning to head, in contrast with the dark rocks and more somber verdure of the mountains made an effect most beautiful and strange.

We had gone but a short distance from the foot of the hills when we were met by the strong sulphurous odor of the springs, brought down by the breeze. In crossing a good-sized brook, a little further on, we found it almost boiling hot and were earnestly cautioned not to fall in while crossing, which intimation was hardly necessary.

About 2 miles of this upward work and we reached a rocky amphitheater, in the bottom of which were the springs.

Some scarcely came under the name of springs, as they were simply jets of steam and sulphurous vapor escaping from crevices in the rocks with a roar like that made by the escape pipe of some gigantic boiler “blowing off” steam through its safety-valve.

Others were bubbling caldrons of milky-looking water 2 or 3 feet in diameter, and one or two were nothing more nor less than boiling liquefied mud.

A little distance from the level floor of the amphitheater where the springs were, and perched among the volcanic boulders which covered its sides, were numerous little huts which were found to contain rude appliances for collecting the sulphur.

Here and there in the vicinity of the springs a few half-naked Chinamen were mining the sulphur stone left in by-gone ages.

When collected it is taken to one of the huts and boiled in small iron caldrons (of which each hut had a battery of three, roughly mounted in clay and stones) and more or less purified of dross, etc., by skimming and by allowing the heavier impurities to settle in cooling. After it cools the cake of sulphur and slag is lifted out of the pot and the sulphur separated from the latter. It is again heated and run into round molds about 12 inches in diameter by 8 inches deep. In this form it is carried down the mountains for shipment by coolies, a cake being suspended from each end of a bamboo bearing-pole.

It is impossible to ascertain the quantity of sulphur thus produced, but it is necessarily very small. It is all shipped to China, most of it, if riot all, going to Canton.

After lunch we retraced our steps, embarked, and steamed down to Tamsui, the sea-port at the mouth of the river.

Tamsui, Formosa.—Tamsui is the sea-port of the capital. It is 10 miles from Taipeifu, on the right bank of the Tamsui River. It has a troublesome bar, over which ships drawing more than 12 feet can not pass.

The foreign population numbers about a dozen people. The native population is about 95,000. The foreigners live on the top of a range of high hills. The native city is on the river bank and malarial fever prevails there. The only foreign physician in North Formosa resides at Tamsui. He visits Twatutia and Kelung. There is a missionary establishment here under the direction of the Canada Presbyterians. A Spanish Catholic priest has lately arrived. The governor, by the way, seems to identify the Catholics and the French. He said to me, “You have few Catholics in your country.” I said, “You are mistaken; we have at least ten millions.” He said, “Your people don’t like the Catholics?” I said, “You are mistaken again; all religions are indifferent to my Government. We molest no man for his religous opinions. The Catholics in the United States are just as worthy, deserving, and good citizens as the Protestants. There is not a particle of difference made in the Government, or in society, between Catholics and Protest ants.” He seemed quite surprised at these statements.

The trade of Tamsui in 1887.—For reasons that will appear hereafter, I describe with some minuteness the trade of the chief port of northern Formosa.

Shipping.—The shipping is continually on the increase. The “Dou glas” is the main line of steamers, but twenty-nine roving steamers entered Tamsui in 1887, bringing rice and sundry cargoes and taking away coal and passengers. Two other steamers under the British flag and seven sailing vessels entered the port. Here, as elsewhere, sailing vessels have decreased in number. One sailing vessel of 180 tons burden flying the American flag, entered Tamsui in 1887, but no steamer.

Value of the trade.—The gross value of the trade in 1887 was 5,641,99( Haikwan taels, being an increase of 74,000 taels over 1886. This increase is chiefly represented by the telegraph materials and machinery imported for government purposes. Rice increased as an import. Tea declined as an export in value, but not in quantity.

Foreign imports.—Opium imports increased. Opium was largely imported from Turkey. This opium can be divided in small quantities while a ball of Benares opium can not be so minutely divided; hence in is popular.

Cotton goods show an increase of 10,000 pieces as compared with 1886 Japanese cloth has fallen away.

Forty-nine pieces of American drills, worth 400 taels, and 911 pieces of American sheetings, worth 2,004 taels, were imported.

In woolens and chiefly in lastings there is a decrease of 2,000 pieces.

Kerosene oil and Japanese matches have held their own.

Of native imports there were 65,000 piculs of rice, 11,500 piculs of beans, and 3,500 piculs of wheat in excess of 1886.

The increased importation of rice is due in part to the failure of the local crop and in part to the increase of population. Medicines, tobacco, and potato flour show an increase, while nankeens, sugar, and fans have declined.

Shanghai has largely increased her trade with Formosa. The total increase at Tamsui is 264,000 Haikwan taels. The chief foreign imports from Shanghai were shirtings, Japanese cloth, iron ware, hardware, cement, machinery, and kerosene oil.

Tea.—The tea season opened May 6. In June the largest business was done. Exportation continued until December. The exportation to Amoy for the year exceeds that of 1886 by 5,000 piculs and that of 1885 by 4,000 piculs. This result argues well, chiefly for the growers and badly for the foreign merchants. Native packers and middle men have profited by the increase.

Camphor.—Under the auspices of the camphor office 2,500 piculs of this product have been collected and sent to Hong-Kong. A Cantonese firm takes this camphor at $12 a picul. It costs the Government $9 and sometimes $11 per picul to procure the camphor, so the profit is small.

Sulphur.—There has been considerable export of the product of the springs hereinbefore described.

In September a native firm contracted for one year to take 3,000 piculs for the Canton market at the rate of $3 per picul, the Government giving the sole right to sell Formosa sulphur at Canton. There has been some trouble, however, with persons claiming prior rights.

Coal.—The total amount of coal exported, including cargoes in junks, was 20,301 tons.

Cargoes have been obtained with difficulty. The out-turn of the Government mine above described has been 25 to 50 tons a day. The coal business under the new English engineer is improving.

Telegraph lines.—In addition to the telegraph lines from Tamsui to Sharp’s Peak, from Taipeifu to Tamsui and Kelung, already described herein, Taiwanfu was joined to the Pescadores by a short cable.

It is believed that some advance has been made for trade among the tribes south of the To-ko-ham River.

Further details of the trade of Tamsui may be found in the annual “Returns of Trade Reports “for 1887 of the imperial maritime customs, which has been forwarded to the Department. My figures are taken from this report.

Borne general observations.—Great Britain has a consul at Tamsui, Mr. F. S. Bourne, the gentleman who so actively assisted me in the Chungking difficulties two years ago.

Nearly the entire products of Formosa go to the United States. A peculiarly good feeling for our Government and people exists here.

It is worthy of serious consideration whether, in view of our intimate relations with Formosa, it is not advisable to establish a full consulate at Tamsui. The Department from this report and from other sources of information can determine this question.

Formosa is to-day the most progressive part of China. It comprises a body of land as rich as exists anywhere. Should the schemes of improvement now projected and in process of construction be succesfully prosecuted a vast impetus will be given to commerce. Conflicting ideas of national development now confront each other in the United States. Whatever views as to protection may be urged at home, it is impossible that the American abroad should not desire to see his own flag floating in every port and on every sea.

Facilities furnished by the establishment of consulates greatly contribute to national aggrandizement and to the furtherance of commercial interests.

In my opinion a United States consulate of equal rank with other consulates should be created for Formosa.

The governor has assumed vast responsibility. His operations involve the expenditure of large sums of money. The system of taxation in Formosa has been primitive. She has been neglected by the imperial government and has been spared taxes which prevail on the main-land. It is now necessary to raise enormous sums by taxation. The land tax in China is being levied in Formosa. There will be opposition, riots, perhaps, and serious difficulties. From the energetic character of the governor, I argue success for him, but he may be involved in serious financial trouble. He already looks anxiously to the future.

He has contracted great liabilities. He has great difficulty in meeting them. He has embarked on a novel and adventurous career for one of his nationality. His course points to a revolution, which in its effects may control the destiny of China. Success for him means imitation on the main-land and an unbounded progress for the Empire.

The world at large must applaud his energy and pluck and wish him all manner of success.

The lekin question.—The necessity for raising money has driven and will still drive the governor to levying new lekin taxes. I thoroughly explained to him the position of foreign powers on the lekin question. I stated to him that under the treaties we would not pay lekin at the treaty port, nor would we pay lekin between the treaty port and the actual port of shipment. I told him that lekin, for instance, would not be paid between Twatutia and Tamsui; that China had stood by and seen foreigners invest enormous sums of money in places near to the treaty ports; that this money had been invested and trade had been prosecuted on the faith that only existing taxes would be collected; that China was by her consent and non-action for many years now estopped from levying new taxes; that it would be very easy to destroy all foreign trade by excessive taxation, and it would not be submitted to. He made a lengthy explanation of his views of the lekin question. I told him that the foreign powers could not take into consideration any of the inconveniences of collecting lekin away from treaty ports and contiguous localities; that we could only look at the treaties, and under our construction his propositions were inadmissible.

Map of Northern Formosa.—I append hereto a map of Northern Formosa. Upon this map are inscribed the names of the following valuable trees growing in Formosa: The camphor, the shaulam, the sasam, the su-te-cha, the lama, and katang, the pride of India, the oak, the rattan, and a great variety of bamboo.

The map will enable the Department to follow me in my trip across Formosa.

Macao.—The Juniata remained four days at Hong-Kong, and left for Macao the morning of June 1, and arrived at 11 a.m. the same day.

As soon as we arrived a steam-launch was sent out to the ship by the acting-governor, and put at our disposal. Captain Burwell, the secretary, and myself went ashore to call upon the acting-governor.

A salute was fired from the fort, a company of soldiers was drawn up on the quay, and a carriage awaited us. Mr. J. R. da Costa Duarte, the secretary-general and secretary of legation, acting-governor, received us with great politeness. We were escorted to the grotto of Camoens, and driven over the narrow limits of the Portuguese possessions.

I do not think the Portuguese officials are satisfied with the late Chinese treaty. They say that Macao has belonged to Portugal for three hundred years, that the recognition of her title to Macao is all that she got under the treaty. For this empty consideration she has agreed that Macao shall be an outstanding opium depot for China. Under this treaty no opium can be sent from Macao to China without a certificate from the Chinese commissioner that duties have been paid. Just beyond the narrow peninsula on which Macao stands the Chinese custom-house is located, and watch is kept over dealers in opium.

It must be considered, however, that Portugal has set at rest a troublesome question. For many years she paid tribute or rent for Macao. Then she ceased to pay anything.

Canton.—June 5, I called on his excellency Chang Chih Tung, Viceroy of the two southern provinces.

I had notified him that I would call on him with the consul and my secretary for a business interview. I was received cordially, and after a considerable business discussion was entertained at dinner.

I talked with all possible plainness to the Viceroy. I stated to him that his conduct was in direct contrast to the treatment of the United States toward China. That since my appointment as minister three years ago we had paid, or were to pay, to China nearly a million dollars, whereas he had never paid a cent to our citizens. That I was sorry to learn that the goods of Americans were wrongfully seized for alleged evasion of lekin; that proper protection was not afforded to Americans; that their just claims were denied payment. I had to demand of him very plainly that he should take up and settle the pending claims of our citizens, particularly that of Dr. Fulton.

He made a general denial of all my statements as to wrongs and injuries except the non-payment of claims. He said he had promised me two years ago that there should be no riot, and he had kept his word; that he had not knowingly seized foreign goods for lekin; and that as for Dr. Fulton’s claim, he had not paid it because the amount was not ascertained. He said Dr. Fulton had said he had lost very little property and now he had a large claim. I said it was impossible that Dr. Fulton should have made such a declaration; that he was a thoroughly honest man; and that, besides, it was exceedingly easy to have proof as to the actual loss and to decide on the evidence. He said the matter would be taken up and examined and he would do justice. He said that if foreign goods had been seized for lekin it was a mistake, and that as soon as possible such mistakes were corrected. It is true that the Viceroy lately paid Russell & Co. the full value of some kerosene oil that was seized by the lekin authorities.

Mr. Seymour then read a lengthy paper, stating item by item the grievances complained of. The viceroy promised to consider all the complaints and to do justice.

The point of the obstruction of the Canton River was presented by us. The Viceroy did not then give any assurance that he would remove the obstructions, but I have lately seen it stated that he has ordered their removal on the ground that they produce floods.

The above is the substance of an interview which lasted about two hours. Two days afterwards the Viceroy was entertained by the consul. Several of the officers of the Juniata were present. The conversation was chiefly on modern naval improvements, in which the Viceroy is much interested.

In the report of my visit to Canton, as to other places, I intentionally omit an account of my visits to the missions. They were fully described in the report of my tour made two years ago.

Foo-Chow.—The Juniata put into the Min River, on which Foo-Chow is situated, June 12. Consul Win gate soon arrived in a steam-launch, and we proceeded from Pagoda Anchorage to the city.

I called on the Viceroy, and he returned my call. There was no business with the Viceroy awaiting me. Our conversation was general and very friendly.

Mr. Wingate successfully manages the business of this consulate, generally without any appeal to the legation.

There may be questions arising out of the looting of the San Pablo, but it is unnecessary to state them until they are formally presented to me.

One of my reasons for going to Foo-Chow was to obtain information as to the conduct of the Chinese officials at the time of the wreck of this ship. I found that the Chinese authorities had promptly sent a steamer to the wreck, but the people of the vicinage had, before its arrival, looted the ship. It is likely that I will bring the general question of protection to wrecks before the Yamên, with the view of securing regular methods of procedure when ships are wrecked, and holding the local authorities responsible for damage. A very good system now prevails in the province of Shantung. It should be extended to all the coast provinces.

Shanghai.—The Juniata reached Shanghai June 18.

At Shanghai, as elsewhere, the local officials called with many expressions of good-will, compliments to our distinguished consul-general, and lavish offers of entertainment.

Among the many matters of business discussed with General Kennedy there is but one which I particularly desire to bring to your attention.

The case of Arlington.—During my stay in Shanghai one Arlington, an American, was charged with taking indecent liberties with little girls in the public gardens. The peculiar atrocity of this crime awakened great indignation and there was serious talk of lynching.

Having heard the circumstances from the witnesses, I advised his prosecution for an assault and battery with intent to commit a rape. To this charge he pleaded guilty, and was sentenced to imprisonment at hard labor for four years.

The insufficiency of our criminal system in the East generally and in outlaying countries was never better shown than by this case. The criminal jurisdiction of the consul is first statutory. But the United States code provides no punishment for this or any other offense, except offenses against the United States.

The ordinary criminal jurisdiction belongs to the States and the Territories. The criminal jurisdiction is, second, common law.

But the common law in England has long since been superseded by act of Parliament. That portion of the common law which prevails in the United States antedates the Revolution. It was necessary in this case to go back to a time prior to the Revolution to find a definition of the crime and its punishment. We found, or thought we found, that the punishment in such cases was left to the discretion of the court. Public opinion and justice demanded a heavy punishment. We did the best we could.

The remedy for this anomalous condition of things is so simple that I most seriously recommend its adoption. It would be the simplest piece of labor to draw a bill providing that if any American shall commit any defined offense in China, Japan, Siam, Corea, or any of the islands in the East, or in any uninhabited country, he shall be punished as enacted. Congress would certainly pass such a bill and the consuls and legations would readily and easily enforce its provisions.

As the minister of the United States is denied power of legislation, the only possible solution of a great and growing difficulty is the one stated. I commend the subject to the careful consideration of Dr. Wharton. It is worthy of his distinguished pen.

In this general report I do not deem it necessary to discuss elaborately the questions involved, but may do so hereafter in a separate dispatch.

During my stay in Shanghai the Juniata fired a salute of twenty-one guns for the Emperor William, of Germany, and I attended the funeral obsequies of the late Emperor Frederick.

Tientsin.—July 1 I called on the Viceroy Li Hung Chang. He had been sick for twenty days and received me as a special mark of favor.

Here, again, there are no questions pending requiring my interposition. The Viceroy is intelligent, has experience, properly esteems foreigners and no difficulties worthy of mention occur in his province.

As he and I are old friends our interview was very friendly.

I inquired whether the railroad would go from Tung-chow to Peking. He said that it was not certain that it would be extended to Tung-chow; that there was opposition to it.

He then inquired if I knew the minister to Corea and what his rank was. I said he was minister resident and consul-general. He said he meddled in things that did not concern him. I said that I thought that an investigation of his conduct would disprove that assertion; that men were often accused of participating in schemes of which they had no knowledge) that Mr. Dinsmore stood well with everybody who knew him, and that I believed him to be prudent and discreet; I had never known that in any public act he desired anything more than that Corea should observe her treaties, and that our citizens should be protected in their treaty rights.

Concluding observations—I desire to return thanks to Admiral Chandler for the use of the Juniata, and to Lieutenant-Commander Burwell and his officers and crew for their uniform kindness and for substantial assistance furnished me in the prosecution of my trip. I found on this tour, as before, and as I believe I will always find, that the American naval officers are accomplished, educated, and agreeable gentlemen.

It is, possibly, not within my purview to make any suggestions touching the Navy, but an extended experience has satisfied me that the Government should have on this station at least two small-draught steamers, capable of going to Canton, Tientsin, Shanghai, and, in fact, to all the chief cities in China. Nearly all the principal treaty ports are situated on rivers. These ships should be fast and modern in their appointments.

On proper request one of these ships should be put at the disposition of the minister for trips to the ports.

I am satisfied that ministerial tours are productive of great good. They display the flag; they serve to introduce naval officers to the best Chinese and foreign society, they enable the minister to keep thoroughly posted on the wants of the foreign population; they create friendly feeling between the Chinese officials and the foreigners. For the Navy and the minister there can be no better disclipine.

I have, etc.,

Charles Denby.