Mr. Conger to Mr. Hay.

No. 1372.

Sir: Referring to my No. 779, of October 10, 1901, I have the honor to inclose herewith a copy of a note received by the dean of the diplomatic corps from Prince Ch’ing, advising that henceforth foreign merchants will not be permitted to buy property in Peking for dwellings or to establish places of business thereon. He says that since the occupation of Peking by the allied forces in 1900 such purchases have been agreed to by the Chinese officials as an exceptional arrangement, but that since conditions are now settled the old regulations ought once more to obtain, and such exceptional arrangements will no longer be made. * *

My own opinion is that it were better not to formally agree to their request nor to so flatly reject it as to compel a direct and definite determination. I have, therefore, since the note is addressed to the dean only, thought best to make no reply at present, but leave the matter open for such future discussion as events may require.

I have, etc.,

E. H. Conger.
[Inclosure.]

Prince Ch’ing to the dean of the diplomatic corps.

I have the honor to call your excellency’s attention to the fact that Peking is not by any means a treaty port. According to the treaties, it was originally agreed that merchants of the various nationalties should not be permitted to purchase houses, reside, or establish business houses here.

Since the coming of the allied forces to Peking in 1900, the merchants of their several nationalities have followed them here, have bought houses and opened places [Page 122] of business in great number. Moreover, some have sent the deeds to the places bought, transmitting them through their ministers in Peking to our board to be forwarded to the prefect of Shun-t’ien Fu with fees for his seal, and our board has in each case made an exceptional arrangement and consented, but now, the general aspect of affairs being settled, we ought naturally to return to the old regulation, so as to conform to the requirements of the treaties, and we must therefore clearly state that henceforth merchants of the various powers will not be permitted to buy any more property in Peking for dwellings or to establish places of business, and should there be any additional purchases of property and request be made for official stamping of the deeds our board will not again agree to any exceptional arrangement in the matter.

As in duty bound, I send this dispatch to your excellency, the dean, and hope that you will transmit it to the various ministers for their information that they may generally instruct the merchants of their several nationalities to take note thereof.

A necessary dispatch.