EXHIBIT I.

[Translation.]
No. 3498.]

Mr. Envoy: I did not fail to report to the competent quarter the contents of your note of November 9/21, 1894, relative to the affair of the confiscation by the Russian war cruiser Zabiaca in the month of August, 1892, of 124 seal skins on the American schooner Kate and Anna.

According to a communication which I have just received from the imperial ministry of marine the commander of the Zabiaca believed himself to be justified in making this confiscation, inasmuch as, having encountered the schooner at a distance of 30 miles to the south of the Commander Islands, it was shown that the log book had not been kept up for ten days, and that the chart of the voyage bore marks which indicated that during these ten days she had twice been in the channel between Bering and Medny islands.

He concluded that the seals had been killed in Russian waters, and, in confiscating the skins in question, finding no other supporting evidence, he released the schooner, but required of the captain an engagement, signed by him, not to kill seals in Russian waters. Mention was made of this engagement in the log book. According to the statement of the commander of the Zabiaca no claim was made at the time by the captain of the schooner.

In view of the above-stated facts and the good faith of the commander of the Zabiaca being beyond doubt, it is clear that indemnity to the captain of the schooner Kate and Anna could only be due for the 124 seal skins confiscated upon his proving that the seals in question were killed outside the limits of Russian waters.

As to the claim of $8,233 for loss sustained, owing to the measures taken by the commander of the Zabiaca, that can not be taken into consideration, inasmuch as the Kate and Anna was not prevented from continuing her hunting outside the prohibited waters.

Please to accept, Mr. Envoy, the assurance of my most distinguished consideration.

Chichkine.

Mr. Clifton Breckinridge, Envoy, etc.