Mr. Hay to Mr. Conger.

No. 830.]

Sir: I have to acknowledge the receipt of your dispatch No. 1639 of June 22 last on the subject of the Whangpu conservancy commission inclosing correspondence with the Chinese foreign office.

While the Department approves of the remark made by you to Prince Ch’ing in your inclosed note of June 21, that consent can not be given to the diversion of any portion of the customs revenues to any other purpose than that for which they are already pledged under Article VI of the final protocol of September 7, 1901, the Department is not at all disinclined to consider the proposition for China to undertake alone the conservancy work so urgently needed on the Whangpu River.

The Department has already made its position known to you in its cable instruction of June 25, 1904, and its instruction No. 814 of June 29, 1904. You will conform your future action with their terms.

I am, etc.,

John Hay.