Mr. Buck to Mr. Hay.

No. 642.]

Sir: I have the honor to acknowledge the receipt of instruction No. 399, of date April 12 last, relative to memoranda exchanged between the Department of State and the British embassy at Washington on the subject of the reference to arbitration of the question of the Japanese Government’s right to the imposition of the house tax in respect of buildings which are held under perpetual lease.

The opinion of the Department, as set forth in the quotation from its memorandum embodied in the instruction, is that “the scope of the reference should be such as to include and settle all questions in controversy relative to the imposition of charges and taxes of whatever style and character,” and I am instructed to make proper representations to the Japanese Government in support of the view that the question in all its bearings should be referred for final settlement by the proposed arbitration.

I have the honor to state that upon the receipt of the above instruction I communicated the views of the Department to the Japanese minister for foreign affairs in a note of date the 13th instant, copy of which is herewith inclosed.

I have, etc.,

A. E. Buck.
[Inclosure.]

Mr. Buck to Baron Komura Jutaro.

No. 350.]

Monsieur le Ministre: Referring to the proposal of the Imperial Government to refer to arbitration the question of the tax on the buildings erected on perpetual leaseholds in the former foreign settlements, under instructions from my Government I have the honor to represent the desire of the United States that the scope of the reference be widened so as to include and settle all questions in controversy relative to the imposition of charges and taxes of whatever character upon such buildings.

The view of my Government is that this question of taxes in all its bearings should be referred for final settlement by the proposed arbitration.

I avail, etc.,

A. E. Buck.