Mr. Hay to Mr. Conger.

No. 606.]

Sir: Referring to your telegram of the 16th ultimo I have to say that the Department does not think that there is any ground on which [Page 47] the Government of the United States could take any action against the arrangement being made between the Russian and Chinese Governments for the establishment of customs stations at Talienwan and some interior Manchurian points, or against the post-office service in the same country. The only point with which we can be concerned is that the duties levied at these places do not exceed the regular tariff duties levied at all other points in the Chinese Empire open to foreign trade. That the customs stations to be created should be under Russian commissioners is most natural. There being a number of Russians in the imperial maritime customs service, it would seem but natural that they, or some other Russians, should be employed in these offices.

* * * * * * *

The letter of the Russian minister of foreign affairs to our ambassador at St. Petersburg, under date of the 18th of December, 1899 (see Correspondence Concerning American Commercial Rights in China, p. 17, a copy of which is herewith inclosed), defines pretty clearly the position of the Russian Government respecting the creation of customhouses in the leased territory in China.

You will watch the arrangements that may be reached between China and Russia on this subject, and should they in any way prove a menace to American interests and violate in any way the treaty provisions, you will take such action as the circumstances may require and your experience dictate.

I am, etc.,

John Hay.
[Inclosure.—Translation.]

Count Mouravieff to Mr. Tower.

Mr. Ambassador: I had the honor to receive your excellency’s note, dated the 8th-20th of September last, relating to the principles which the Government of the United States would like to see adopted in commercial matters by the powers which have interests in China.

In so far as the territory leased by China to Russia is concerned, the Imperial Government has already demonstrated its firm intention to follow the policy of “the open door” by creating Dalny (Ta-lien-wan) a free port; and if at some future time that port, although remaining free itself, should be separated by a customs limit from other portions of the territory in question, the customs duties would be levied, in the zone subject to the tariff, upon all foreign merchandise without distinction as to nationality.

As to the ports now opened or hereafter to be opened to foreign commerce by the Chinese Government, and which lie beyond the territory leased to Russia, the settlement of the question of customs duties belongs to China herself, and the Imperial Government has no intention whatever of claiming any privileges for its own subjects to the exclusion of other foreigners. It is to be understood, however, that this assurance of the Imperial Government is given upon condition that a similar declaration shall be made by other powers having interests in China.

With the conviction that this reply is such as to satisfy the inquiry made in the aforementioned note, the Imperial Government is happy to have complied with the wishes of the American Government, especially as it attaches the highest value to anything that may strengthen and consolidate the traditional relations of friendship existing between the two countries.

I beg you to accept, etc.,

Count Mouravieff.