I have treated this question in several dispatches to you, being Nos.
2785, of the 28th of July, and 2787, of the 31st of July, to which
reference is made.
Extended argument on this question is not necessary. The treaty of
Shimonoseki, which will be found in the Chronicle and Directory of 1897
at page 107, confers the right of residence in the city of Hangchow. The
commercial treaty between Japan and China, which will be found at page
359 of the same book, confers the same right. Article IV of that treaty
distinctly confers that right, and the latter clause thereof grants the
same right in the localities which may be set apart for the use and
occupation of foreigners. I regard this latter clause as simply
cumulative. All the old treaties contained the same right.
I refer to Article XIV of the treaty of 1858 with the United States,
which is in accord with the treaties made with all the other powers. I
do not feel authorized to consent that American citizens shall be denied
the right of residence in the cities which were opened to trade and
residence by the Shimonoseki treaty. A question of this importance
should, it seems to me, be presented to you for determination.
I accordingly request that you will instruct me as to the line of action
to be adopted. As the Chinese Government is strongly urging the subject
upon me, instruction by telegraph might be sent to me if, in your
opinion, it is feasible and desirable to do so.
[Inclosure 1 in No.
2789.]
The Tsung-li Yamên to
Mr. Denby.
Your Excellency: In the matter of an
American life insurance company establishing an office in the city
of Hangchow, the Yamén, in accordance with the telegraphic request
of the governor of Chekiang addressed the minister of the United
States asking that instructions be issued to have the office of said
company removed from the city.
The minister of the United States replied that he had referred the
matter to the consul-general of the United States, which is on
record.
[Page 74]
On the 19th of July the Yamên received a further communication from
the governor of Chekiang, embodying a report from the taotais of the
board of foreign affairs as under:
In regard to the American merchant opening a life insurance
office at a place called Yu Sheng Kuan Chiang, the office of
foreign affairs addressed a communication to the United
States consul requesting that instructions be issued to have
the said office removed from the city, but no reply has been
received to said communication.
It appears that at Hangchow, in addition to the Japanese
settlement, a large tract of land has been set apart at the
Hung Chien Bridge as a trading place for foreigners. The
land has been tilled in, roads made, and the banks of the
river repaired. Police have been employed, and the outlay of
money has been heavy. This has been done for the purpose of
treating foreigners kindly and giving them due protection in
carrying on their business. It can not be said that they
have not been treated in a generous and liberal manner.
The said American has established, in violation of treaty, an
office in the city of Hangchow.
Of the foreign trading ports in China, Shanghai dates the
very earliest. It is situated on the Yang King Pan, and has
been opened for over fifty years. It has never been heard of
foreign merchants establishing hongs in the city of
Shanghai. There is ample proof that foreign, hongs have not
been established at the treaty ports of Chinkiang, Tientsin,
and Foochow.
In the first year of the reign of Tung Chih, the English firm
styled Li Cha Su Yo(?) established an office at Kalgan. The
Tsung-li Yamên addressed the British minister in regard to
the matter, and received a reply that British merchants must
confine themselves to the treaty ports; they are not
permitted to open mercantile houses in the interior. There
is no rule against their doing business at the open ports.
The said American, in opening a life insurance office in the
city of Hangchow, is in violation of treaty.
The gentry of the city of Hangchow have also petitioned as follows:
The trading port has been fixed and decided on. It is
situated at Hung Chien Bridge. Foreign merchants have stated
that when their hongs have been built in the settlement they
will at once move from the city; still mercantile signboards
have been put out and it would seem that they are not merely
doing business temporarily in the city.
The people have their suspicions. Besides, the autumn
examinations for the second degree will take place, at which
a large concourse of students will appear, and it is to be
greatly feared that some unexpected misfortune may
occur.
It would seem that the treaty is violated by establishing
foreign firms in the city of Hangchow, as there is no
boundary or fixed limit there. In the first place, foreign
business should not be conducted there, and in the second
place, it is to be feared that the people would not be
orderly and quiet, and trouble would ensue, involving
foreigners, and it is to be apprehended that it would be no
easy matter to give adequate protection to them.
The governor would observe that a settlement has been marked off at
Hangchow, at a place called Hung Chien Bridge, where foreigners can
carry on trade, purchase land, and erect mercantile establishments.
Hangchow is a city divided into sections. There are a great many
Chinese doing business there. If foreign merchants are also to do
business there, they will be right among the Chinese.
The governor further states that it is his duty to keep order in
Hangchow, and nothing has been said about the city being opened as a
trading place for foreigners. Further, the benefits that would
accrue to foreign trade in the settlement would be best.
The request is made that the minister of the United States be
communicated with, asking him to issue instructions to have the said
life insurance office removed from the city of Hangchow, and that no
passports be issued to American merchants to establish business
offices in the city of Hangchow.
The Yamên would observe that the foreign settlements are not a
dwelling place for both Chinese and foreign merchants. They are
separated, and hence peace and quiet prevail among them. This is in
[Page 75] accordance with treaty
as well as precedent, and both foreigners and natives should conform
thereto. A foreign settlement has been marked off and limits denned
at a place called Hung Chien Bridge at Hangchow, and it is right
that the said life insurance company should open its office within
the limits of said settlement.
The representations of the governor of Chekiang are in conformity to
treaty stipulations, and his object is that foreigners and natives
should live in peace and quiet, and trouble thus be avoided.
The Yamên, in presenting the governor’s report, would again ask the
minister of the United States to issue instructions to the consul
concerned for the immediate removal of the office of said life
insurance company from the city of Hangchow; and the request is also
made that no passport issue to American merchants who wish to
establish their business places in said city, in order to have a
clearly defined limit where foreign merchants may do business, and
thus give due observance to treaty stipulations.
[Enclosure 2 in No.
2789.]
Mr. Denby to
the Tsung-li Yamên.
Your Highnesses and Your Excellencies: I
have the honor to acknowledge the receipt of your dispatch of the
28th ultimo, relating to the residence of an American citizen in the
city of Hangchow. You therein set forth a communication from the
governor of Chekiang embodying a report from the taotais of the
board of foreign affairs, from which it appears that, in addition to
the Japanese settlement, a large tract of land has been set apart at
the Hung Chien Bridge as a trading place for foreigners. You further
state that an American has established, in violation of treaty, an
office in the city of Hangchow, and you ask that I direct him to
remove from said city. I am unable to see any reason why, under the
treaties, the said American, or any other foreigner, has not the
right to reside in Hangchow. This right of residence is secured by
the sixth article of the Shimoneseki Treaty as to the four towns
which were opened by that treaty. The right of residence is
guaranteed in cities which are opened to trade in all treaties made
between China and foreign powers.
The right of residence is allowed in many cities of China, among
which are Chinkiang, Kiukiang, Wuhu, Ichang, Chungking, and Swatow.
It existed also as to Canton and Foochow.
The question involved touches the interest of all nationalities
having treaties with China. It does not come within the purview of
my duty to arbitrarily settle this question. I have referred it to
my Government, and I request you to avoid taking any action thereon
until I shall have received instructions on the subject. I suggest
also that this question is a suitable one to be brought before the
diplomatic body for its action thereon. At this season the members
of the diplomatic corps are scattered in the country, at some
distance from Peking, and one is in Japan. The weather and the
condition of the roads make it difficult to secure a meeting of the
foreign representatives immediately. I will take measures to secure
such a meeting as soon as I can. I respectfully request that you
suspend all action until such meeting can be had.
