Mr. Hay to Mr. Conger.

No. 416.]

Sir: I have to acknowledge the receipt of your dispatch No. 779, of the 16th ultimo, inclosing a copy of correspondence between you and the Chinese foreign office upon the question of the continued residence in Peking of foreign merchants who located there during the occupation of that place by the allied forces.

The Department approves your reply to the Chinese foreign office, as given in the inclosure to the dispatch.

I am, etc.,

John Hay.