Mr. Denby to Mr. Gresham.

No. 79.]

Sir: I have the honor to inform you that I received your telegram of the 19th instant at 8 p.m. the 20th.

Early in the morning of the 20th I sent a note to the Yamên stating that I desired to see the prince and ministers on business of importance to China, and that unless otherwise advised I would go to the Yamên at 11 a.m. An answer came that the Yamên would see me at 3 p.m. At that hour I had an interview with six of the ministers. Prince Kung was not present, because, as was stated, he had pressing duties elsewhere.

I informed the ministers that I was advised by my Government that Japan would consider any direct overtures for peace made by China to her through myself. I stated that I supposed that this intimation from Japan had been brought about by the President in pursuance of the general tenor of the advices which had reached him from China through me.

The ministers seemed quite pleased at the proposal so made. There lurked behind their gratification an idea that Japan made this proposal on account of certain alleged repulses recently suffered at Port Arthur. As I had little faith in these repulses, I did not lend myself to this suspicion. [Page 81] I explained very thoroughly through my interpreter the position that I occupied, stating again and again that China had invoked the mediation of the United States, that Japan had apparently concluded that in view of her victories ho mediation was necessary, and she demanded that China should herself make direct overtures for peace.

I gave the ministers most distinctly to understand that I proposed to act simply as an intermediary, that I would state the basis of negotiations, but they themselves would have to arrange the details; that my Government, as I understood, would be glad to see peace established, and as Japan desired no mediation, hut would consider “direct” overtures from China, I was prepared to send such overtures in cipher to the minister of the United States at Tokyo, to be by him presented to the Government of Japan.

I have, etc.,

Charles Denby.