Mr. Buck to Mr. Hay.

No. 629.]

Sir: I have the honor to confirm the two telegraphic instructions of dates of the 19th and 24th instant.

On receipt of the telegram of the 19th instant I communicated by note to the Japanese Government the desire of the United States Government, as directed (copy herewith). On yesterday I received a reply (copy herewith), and, some hours later, your telegram was received.

* * * * * * *

I have, etc.,

A. E. Buck.
[Inclosure 1.]

Mr. Buck to Baron Komura.

Monsieur le Ministre: In compliance with telegraphic instructions from my Government, I have the honor to inform your excellency that His Imperial Majesty’s Government having given the assurance that citizens of the United States in Japan will receive equality of treatment with the nationals of other states in the matter of house tax, the United States Government would like to agree, by an exchange of notes with the Imperial Government, that the two Governments will abide by the decision of the principle involved which may be settled by arbitration between Japan and the other states, touching both the house and income tax, and that the Imperial Government will apply the principle of equality to nationals of the United States, France, Germany, and Great Britain.

I avail, etc.,

A. E. Buck.
[Inclosure 2.—Translation.]

Baron Komura to Mr. Buck.

No. 11.]

Monsieur le Ministre: In reply to the note which your excellency did me the honor to address to me under date of the 22d instant respecting arbitration, I beg to say that the Imperial Government would be willing to agree by an exchange of notes with the Government of the United States, that the two governments will abide by the decision of the principle involved, which may be settled by arbitration between Japan and any other power touching the house tax, and that the Imperial Government [Page 709] will apply the principle to citizens of the United States equally with the subjects and citizens of Germany, France, and Great Britain.

But, I should point out that, as the contemplated arbitration is restricted to the single issue of the house tax, the Imperial Government would wish to exclude from the notes which it is proposed to exchange, any reference to the income tax. I may add in further explanation of this point that France was the only power to raise the question of the income tax, and that she has now accepted the principle of arbitration limited to the single question of the house tax.

I avail, etc.,

Baron Komura Jutaro,
Minister for Foreign Affairs.