Mr. Hay to Mr. Conger.

No. 189.]

Sir: I have to acknowledge the receipt of your dispatch No. 203, of May 11 last, reporting the conclusion of arrangements for the extension of the foreign settlement at Shanghai, some of the particulars of which are reported in Consul-General Goodnow’s despatch No. 195, of May 9 last.

You add that the arrangements have your approval.

In reply I have to say that the Department awaits a full report from Consul-General Goodnow, before expressing an opinion on the subject.

I am, etc.,

John Hay.