Mr. Sherman to Mr. Dunn.
Washington, June 2, 1897.
Sir: The United States consul-general at Kanagawa sent hither, under dates of April 1 and 3, 1897 (dispatches 277 and 279), information respecting the passage by the Japanese Diet on the last day of its session, March 24, of a law granting a bounty to native subjects or companies directly exporting Japanese raw silk. No report on the subject has been received from the legation, and it is not, in fact, known here whether the act so passed has received the Imperial sanction and become a law. It appears to have still lacked the Imperial sanction on April 8, last, when a communication representing the injurious effects of the measure was addressed to you as “doyen” of the diplomatic corps by a committee of the Yokohama General Chamber of Commerce.
The Department has received a letter from Messrs. Middleton & Smith, of New York and Yokohama, calling attention to the Japanese bill and representing that the effect of the proposed bounty would be to ruin the business of American importers of raw silk. They represent that the United States buys more than half of the Japanese crop of raw silk, amounting in value to nearly $12,000,000, of which only $3,500,000 was shipped by native Japanese, leaving a trade of American firms to the value of $8,000,000 to be threatened with virtual extinction.
Under these circumstances I have deemed it proper to have a conversation on the subject with the Japanese minister at this capital, [Page 442] and in pursuance of his request for a fuller presentation of my views in writing I have addressed him a note under this date, of which a copy is inclosed for your information.
I desire to impress upon you, also, the importance of making it equally clear to the mind of the Japanese Government that the United States could not but feel keen concern should it prove that the legislation in question was framed for the purpose of rendering illusionary the valuable guaranties of the treaty of commerce and navigation signed between the United States and Japan November 23, 1894. It certainly can not be forgotten that the negotiation of that treaty was an act of conspicuous friendship on our part toward Japan and responded to the urgent invitation of that Government. In entering into that convention the United States believed that they were doing a friendly service to Japan by aiding the Empire to emancipate itself from the commercial restraints heretofore imposed by the old treaties, and in so doing we accepted as in good faith the proffered assurances of just equality and fairness of treatment in all matters of commercial intercourse. Should it now be ascertained, two years in advance of putting that treaty into force, that its assurances are illusionary and that peculiarly injurious action is intended by Japan, destructive of a large and growing trade, the impression created could not but be painful, and its effects might perhaps endanger the treaty itself. Of this, however, it may be premature to speak, for I am hopeful that the threatened misunderstandings may be averted by temperate and friendly treatment on both sides.
Respectfully, yours,