Mr. Denby to Mr. Sherman.

No. 2785.]

Sir: I have the honor to inclose a copy of a dispatch from the consul-general wherein he brings to my attention a proclamation issued at Soochow forbidding Chinese to sell land to foreigners outside of the concession; also, the fact that the Chinese authorities at the open port of Hangchow oppose foreigners residing in the native city of Hang-chow for purposes of trade.

[Page 70]

I inclose also a copy of my answer to the consul-general, which will inform you of my action in the premises up to this time. In this connection I call attention to my dispatch No. 2776, of July 14, wherein the area of likin exemption as affecting Fuchau is discussed. As no specific case affecting Americans has arisen at Soochow, I have deemed it best to direct the consul-general to send a protest to the Chinese authorities at that port against the proclamation mentioned. The whole question will have to be taken up at Peking by the diplomatic body, or as many of the members thereof as will act in concert, but as nearly all the ministers are now residing at the hills near Peking it will be difficult to procure any action until the autumn.

I have, etc.,

Charles Denby.
[Inclosure 1 in No. 2785.]

Mr. Jernigan to Mr. Denby.

Sir: I have the honor to inform you that the Chinese authorities at the port of Soochow have issued a proclamation forbidding Chinese to sell land to foreigners outside of the concession, and that the Chinese authorities at the open port of Hangchow oppose foreigners residing in the native city of Hangchow for purposes of trade. The positions taken by the Chinese authorities at Soochow and Hangchow are thought to be untenable by many of the consuls-general here, and when approached by the Chinese on the subject I have answered that I would refer the matter to you. I understand that the other consuls-general have submitted, or will submit, the question to their respective ministers. It occurs to me that if the port is an open port a foreigner ought to reside and trade anywhere he wishes within the boundary of the port, as well as have the right to own property within such limits.

I am, sir, etc.,

T. R. Jernigan, Consul-General.
[Inclosure 2 in No. 2785.]

Mr. Denby to Mr. Jernigan.

Sir: I am in receipt of your dispatch No. 357, of the 17th instant, wherein you inform me that the Chinese authorities at the open port of Soochow have issued a proclamation forbidding Chinese to sell land to foreigners outside of the concession, and that the Chinese authorities at the open port of Hangchow oppose foreigners residing in the native city of Hangchow for purposes of trade. This latter question was brought to your attention in my dispatch No. 556, of July 12.

The question of port area and of exemption from likin dues has already arisen at Foochow, as you are aware, and I have addressed the YamĂȘn in the sense that the city of Foochow is within the area of likin exemption.

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The questions submitted by you are analogous to the Fuchau question, and they will all have to be taken up and settled by the diplomatic body at Peking.

The contention that these questions are settled by the Chefoo convention is untenable.

Clauses 1 and 2 of section 3 of that convention are not in force.

There is no specific case affecting Americans, except the one at Hang-chow, on which I await your report now pending.

You can not well take up the discussion of the right of an American to buy land in the city of Soochow, but outside of the concession, until an actual case shall arise, but you are instructed as a matter of precaution to protest against the proclamation mentioned, and to claim in general that the city of Soochow and the settlements are all in the area of the port and are all opened to foreign trade, and that land can be bought by foreigners in the city under the treaties.

As this question affects all nationalities alike, it would be well to consult with your colleagues and secure, if possible, unanimous action.

I understand from the British minister that the English consul at Soochow has already referred the question to Sir N. J. Hannen. You will please send to me a copy of the proclamation mentioned and a copy of your protest against it.

I am, sir, etc.,

Charles Denby.