Mr. Conger to Mr. Hay.

No. 1246.]

Sir: I have the honor to inclose copies of correspondence with Consul Miller, at Niuchwang, upon the question of the establishment of [Page 50] Russian courts in Manchuria and restriction of the judicial jurisdiction of the Russian consul at Niuchwang.

In view of the growing importance of Manchuria and the prospect of rapidly increasing American interests there, would it not be well to attempt some more satisfactory arrangement of the matter directly with the Russian Government?

I have, etc.,

E. H. Conger.
[Inclosure 1.]

Mr. Miller to Mr. Conger.

No. 165.]

Sir: I have to report that the Russian authorities have established courts at several places on the Chinese Eastern Railway in Manchuria for the trial of minor offenses and all civil cases not exceeding 1,000 rubles.

In addition to this they have established higher courts at Harbin, Vladivostock, and Port Arthur for the trial of greater cases.

The consular court jurisdiction of the Russian consul is restricted to the treaty port of Niuchwang. Any action to be brought against a Russian subject outside of this treaty port must be brought in these other courts. This agreement is permanent and is to remain after withdrawal or evacuation.

An American citizen has had a lease with a Russian for buildings lying just outside this treaty port; the Russian refuses to satisfy the demands of the American for payments in accordance with the lease; the Russian consul here refuses to consider the case and says the matter must be settled in the Russian courts at Port Arthur.

I cite this case at the present time simply to explain the situation, and ask for instructions. Must I advise American citizens that they must bring their cases in Port Arthur? The Russian subject is not a citizen of Port Arthur.

To my mind he is clearly a resident of Niuchwang, but as he is employed on the railway line the Russian consul claims that his residence is in the interior of Manchuria.

This will remove all opportunities for watchfulness and assistance on the part of the American consul over the affairs of American citizens in their relation with Russians for all of Manchuria, and in matters of great moment where appeal might be desired it would most likely remove the matter out of China altogether and probably send the case to St. Petersburg.

It would force a man to leave the territory in which he is amenable to the laws of his own country to go into the leased territory of Port Arthur, where his entire conduct, together with his person, would be under the control of Russian authorities governed by Russian law.

This would appear to me to be inconsistent with our rights and privileges here, and, unless directed by you, I do not feel like advising American citizens to submit to this condition.

Unless Russia will grant that the extraterritorial rights of our citizens extend over the leased territory they have no right to require our citizens to appear in the courts of that district to enter complaints against Russian subjects for cause of action that occurs in other parts of Manchuria.

No action has yet been brought, but it is advisable that I should be advised what information to give, as a case is pending along these lines, and I am afraid that a settlement can not be had, although I am using every effort to secure a private adjustment.

I have, etc.,

Henry B. Miller, Consul.
[Inclosure 2.]

Mr. Conger to Mr. Miller.

Sir: I have received yours of the 17th instant, with information that the Russian authorities have established certain courts in Manchuria, along the Chinese Eastern [Page 51] Railway, and higher courts at Harbin, Vladivostok, and Port Arthur, and that the consular-court jurisdiction of the Russian consulate is restricted to the treaty port of Niuchwang.

You inquire whether, in a given case which the Russian consul refuses to consider, saying that the matter must be settled in Port Arthur, you should advise the American plaintiff to take his case there.

Evidently Russia has no right to establish courts outside of treaty ports or leased territory in China, but I apprehend that under her right of extraterritoriality she may or may not establish courts at the treaty ports, and if established may clothe them with whatever jurisdiction and prescribe whatever rules of practice she may think best, just as the United States and other foreign powers do. I think, therefore, that in the absence of any treaty or other agreement between the United States and Russia on the subject, if any American wishes to invoke the aid of a Russian court he will have to go wherever Russia has established such court.

In view of the whole Manchurian situation, this is a matter of such importance that I shall refer it to the Department of State for such action at St. Petersburg or elsewhere as may be thought advisable.

I am, etc.,

E. H. Conger.