Mr. Denby to Mr. Sherman.
Pekin , August 30, 1897 . (Received Oct. 6.)
Sir: In my dispatch No. 2789, of the 5th instant I submitted to the Department a dispatch from the Chinese Government concerning the right of an American citizen to establish business quarters in the city of Hangchow, out of the limits of the foreign concessions, and a copy of my reply thereto. In this reply I expressed the opinion that foreigners had the right to reside in Hangchow under Article VI of the Shimonoseki treaty, but I stated that the question as regards Americans had been referred to you, and I requested that pending your instructions no action be taken.
I am now informed that the Japanese Government does not regard the Shimonoseki treaty as conferring on Japanese the right of residence at Hangchow and Soochow beyond the limits of the Japanese concessions. I learn also that England and other powers will acquiesce in the contention of China that foreigners shall establish their business premises within the concessions designated for them at these cities. In my dispatch to you above referred to I stated that I did not feel authorized to consent that Americans should be denied the right of residence in the cities open to trade. It is evident, however, that it is inadvisable for this legation to insist on privileges under Japanese treaties which the Japanese themselves waive and which are not asserted in behalf of the citizens of the other powers. Unless, therefore, the diplomatic body unites in a demand for unrestricted residence at the above cities, or unless the right of residence should be exercised by citizens of other powers, I shall, with your approval, refrain from further insistence thereon on behalf of citizens of the United States.
I have, etc.,