Mr. Conger to Mr. Hay.

No. 1252.]

Sir: With reference to opening Ta-ku shan as a treaty port, I have the honor to report the following data confidentially obtained from a reliable source:

Ta-ku shan is a small fortified town about 9 miles from the mouth of the Ta-yang River, having a population of from 30,000 to 40,000. From here lumber, beans, bean cake, and wild cocoons are exported by junks to various ports north of Shanghai. In summer one can find hundreds of vessels passing up and down the river, but it freezes from the end of November till the beginning of March. In March, 1900, a Japanese man-of-war passing along the coast, 30 miles south of the river’s mouth, met with floating ice. The depth of the river is 1½ feet at the bar, and 7 or 8 feet within at low water; but at springtide it reaches 20 feet, and vessels of middle size can at high tide easily go up to the town. At the time of the Japan-China war steam launches of 20 or 30 tons were used by the Japanese army for transportation of supplies up the river.

From the above this does not seem to be a very promising place for a treaty port.

But of Ta-tung-kou, at the mouth of the Yalu River, Consul Miller writes me as follows:

It is an open port to which small steamers run the year through, doing considerable business with Tientsin and Chefoo. The principal trade is in timber, although considerable quantities of silk, beans, bean oil, bean cake, and grain are exported. Ta-tung-kou is a growing place, while Ta-ku shan is on the decline. I understand that steamers drawing 12 feet can enter the harbor at Ta-ku shan. The opening of this as a treaty port would no doubt result in considerable development of trade.

The Yalu River is the boundary line between China and Korea. There are large forests upon both sides, and considerable coal is said to be found along its tributaries, and opposite Ta-tung-kou is the rather important Korean town of Wiju.

If Ta-tung-kou should be opened to foreign trade railroads would probably be soon built to connect with the Russian railway on the one side and to Seoul on the other.

As adding somewhat of importance to this locality, the Korean minister here is at present trying to negotiate with the Chinese Government some sort of a joint arrangement as to the important lumber traffic coming down the river, both from Manchuria and Korea. It [Page 52] appears to me, therefore, that Ta-tung-kou would be a more desirable treaty port than Ta-ku shan.

Mukden is the capital of Shengking, the residence of the Tartar general and the official center of the province, and ought to be opened, but I suggest that we endeavor to have Harbin opened also. It is the great railway center and junction with the main line of the Siberian Railway, situated on the Sungari River, has a large foreign populasion, mostly Russian, and is undoubtedly to be the great interior metropolis of Manchuria.

I inclose a copy of a dispatch from Consul Miller with further interesting information upon the subject.

If you approve the above suggestions, I will thank you to so telegraph me on receipt of this dispatch. I am sending a copy of my dispatch to Messrs. Goodnow and Seaman.

I have, etc.,

E. H. Conger.
[Inclosure.]

Mr. Miller to Mr. Conger.

No. 167.]

Sir: I have to acknowledge your dispatch No. 1794, of the 18th instant. In reply I beg to say that there are two places of considerable importance to trade on the southeast coast of Manchuria, viz, Ta-ku shan, at the mouti of the river Ta Yang-ho, and Ta-tung-kou, at the mouth of the Yalu.

Ta-tung-kou is an open port, to which small steamers run the year through, doing considerable business with Tientsin and Chefoo. The principal trade is in timber, although considerable silk, beans, bean oil and bean cake, and grain is also exported. Ta-tung-kou is a growing place, while Ta-ku shan is on decline. I understand that steamers drawing 12 feet can enter the harbor at Ta-tung-kou. The opening of this as a treaty port would no doubt result in considerable development of trade.

Concerning the question of which is best to open as a treaty port, Mukden or Harbin, I should say Harbin by all means. Harbin is situated on the river Sungari, where it has the advantage of river navigation by steamers; it is at the junction of the railway, and is the center of railway administration for all Manchuria. All of the main officials of the railway and the head offices are located there. It is in the center of a very rich and extensive agricultural country, susceptible of wonderful development. It already has a greater foreign population than any place in Manchuria, more foreign business firms, and is certain to become a great center of foreign influence and trade, whether opened as a treaty port or not; and if it is not so opened, our citizens will have no rights or privileges there.

In this connection I beg to point out to you some difficulties in the situation. All the land along the river and the railway, extending several miles back each way from the railway station, has been purchased by the Chinese Eastern Railway and held so as to preclude the leasing or ownership of land to anybody but Chinese and Russians. The high Chinese officials have assisted the Russians in this scheme. This holds true of many other places as well as Harbin.

The only available land for settlement at Harbin is, therefore, held by the railway company, and other nationals are allowed there only at the pleasure of Russia and can not become landowners.

This city will practically remain under Russian official authority. It is sure to become the main business city in the interior of Manchuria, and it is of great importance to our trade that we should have official representation there.

Manchurian trade lines will be changed materially by opening of the railway to’ traffic, as well as because of the new growth by increased immigration, and Harbin is certain to be the place that will grow most from these changes.

Mukden’s trade is more likely to grow less rather than greater, and it will not become the center of any foreign trade.

It will be the official city for this part of Manchuria and will be prominent only from that standpoint. It is so near to Niuchwang that its foreign trade interests are directed from this port. If made a treaty port, its chief value would be as a residence [Page 53] of foreign officials to maintain equitable relations between the different foreign interests. If only Russian officials live and associate with the Chinese governorgeneral and the officials about him, the Russian influence will dominate and monopolize all foreign relations.

To counteract this it appears to me that it is quite essential that our country should have a consul-general, who could arrange to spend a considerable time each year at each of the capitals of the three provinces.

I have, etc.,

* * * * * * *

Henry B. Miller, Consul.