Mr. Blaine to Mr. Tsui Kwo Yin.

Sir: Referring to your note of the 5th ultimo, touching a regulation adopted by the Secretary of the Treasury, in relation to the transit of Chinese laborers through the territory of the United States, I have the honor to inform you that I have just received from my colleague of the Treasury a communication on that subject. He states that in consequence of the prohibition of the entrance of Chinese laborers into the United States, both by treaty and by law, it became necessary for him to devise measures to prevent a violation or evasion of the restrictions in question under cover of the exercise of the privilege of transit.

The regulation to which your note refers expressed the best judgment of the Treasury Department as to the minimum requirements to be enforced for the execution of the restrictive acts while facilitating the privilege of transit. Upon further consideration, however, it is proposed to amend the third paragraph of the regulations of September 28, 1889, by adding thereto an alternative provision that common carriers engaged in the business of transporting Chinese laborers in transit may execute a general bond in lieu of the special bond now required in the case of each transit laborer. The amendment of the regulation provides that any transportation company engaged in the transit of Chinese laborers through the territory of the United States may execute [Page 146] general bond or undertaking to the United States in a penal sum, and with such conditions as may be fixed by the Secretary of the Treasury, and that such company and the Chinese laborers in transit whom it transports shall thereafter be exempted from the foregoing requirements of the paragraph in question in respect to the execution of a special bond in the case of each laborer. It is proposed in this way to secure a guaranty of good faith and a pledge of reasonable diligence on the part of the companies engaged in transporting Chinese laborers in transit. It is not sought by the regulation in question to impair in any respect the privilege of the transit, but merely to exact from the companies engaged in the transportation of Chinese laborers a guaranty against the abuse of the privileges which they enjoy.

Accept, etc.,

James G. Blaine.