Mr. Hay to Mr. Wu.

No. 188.]

Sir: Referring to your note No. 207, of July 6 last, presenting the claims of several hundred Chinese subjects resident in the city of Butte, Silverbow County, Mont., for $500,000 damages for injuries received by them at the hands of lawless parties in said city and county between the year 1886 and the date of your note, I have the honor to inform you that the Department has given careful consideration to your note and its inclosure.

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It is clearly shown that the rights of the Chinese subjects mentioned were violated by the boycott placed upon them by various labor organizations of the city of Butte, and it is equally obvious that for the redress of their grievance an adequate remedy was and is afforded by the courts. The proof of these facts is found in the findings and decree of the Federal court enjoining the defendants from the commission of the acts complained of.

While it is stated in your note that the conspirators are still seeking to execute their conspiracy by clandestine means; that the persons who inflicted the damages are insolvent, and that no remedy can be found by proceedings against the city or county authorities, yet neither of these allegations seems to the Department to warrant the exercise of diplomatic intervention.

The damages suffered could have been averted by a prompt appeal to the court; and the facts that the complainants have suffered damages through their laches in making the appeal does not justify a departure from the ordinary rule that diplomatic intervention is improper in any case where ample judicial remedies exist. If the complainants had promptly availed themselves of their remedial rights, the injuries complained of could have been prevented. Their failure and neglect to do so does not make the United States culpable and responsible for the damages resulting.

The statement that the conspirators are still seeking to execute their conspiracy by clandestine means is one which, to justify action, should be sustained by proofs, on the submission of which to the court it is not doubted that the penalties for disobeying the injunction will be applied.

The statement that no remedy could be found against the unlawful action of the city or county authorities in aid of the conspirators, the Department is unable to accept as correct in point of law.

The Department is glad to be able to assure you that while the action of the Federal court is sufficient proof that the rights of the subjects of the Empire of China domiciled in the city of Butte will be protected and enforced by the judiciary, it may yet add that the Executive will not fail, should the case arise justifying its interposition, to use all its power to secure to them all the rights, privileges, immunities, and exemptions guaranteed by the United States Constitution and by treaty between the Governments of the United States and China.

Accept, etc.,

John Hay.