Mr. Buck to Mr. Hay.

No. 643.]

Sir: I have the honor to inclose herewith a copy of the reply of the Japanese minister for foreign affairs of this date to my note of the 13th instant, a copy of which was inclosed with my dispatch No. 642 of the 14th instant, in which note I stated the view of the United States that the question of taxes in all its bearings, should be referred for final settlement by the proposed arbitration.

It appears from the minister’s note that the Japanese Government will not widen the scope of arbitration so as to include any question other than the one of the house tax, which they claim to be the only question at issue.

I have, etc.,

A. E. Buck.
[Inclosure.—Translation.]

Baron Komura to Mr. Buck.

Monsieur le Ministre: I have the honor to acknowledge the receipt of your excellency’s note of the 13th instant, in which, in pursuance of instructions from your Government you represent the desire of the United States that the scope of the proposed arbitration respecting the house tax be widened so as to include and settle all questions in controversy relative to the imposition of charges within the purview of the suggested reference.

I hasten to assure your excellency in reply to the friendly suggestion of your excellency’s Government that the proposal of the Imperial Government to have recourse to arbitration in the present case was precisely as wide as the controversy which gave rise to that proposal. The only question at issue was the question of the so-called house tax, and it was in respect of that question that the Imperial Government suggested an arbitral solution.

I should add, in order to prevent any misapprehension on the subject, that the Imperial Government could not consent to submit to arbitration any point not in actual controversy or which had not been made the subject of diplomatic discussion and to the amicable adjustment of which the usual diplomatic processes had not been unsuccessfully applied.

The revised treaties have been in operation for nearly three years, and I confidently believe that your excellency will agree with me that rights which have been openly, and with full knowledge, and without objection, exercised by the Imperial Government during all that time, ought not now to be brought into the arena of diplomatic discussion or made the subject of international arbitration.

I avail, etc.,

Baron Komura Jutaro.