Chargé Coolidge to the Secretary of State.

No. 1797.]

Sir: * * * I have the honor to confirm the Department’s telegram of January 5.

On receipt of the foregoing I wrote to the foreign office as directed, urging the necessity of refraining from such action until the parties interested could be heard from.

After waiting a week for a reply I directed the Chinese secretary of the legation to make an informal inquiry as to the purpose of the Chinese Government and the reasons for their delay in answering my note. He elicited the information that the matter was under discussion by the board of commerce, in whose domain the question lies in the internal administration of the country, and that, in connection with the investigation, Chang Chih-tung had been ordered to report on the situation, because of the strong opposition of the gentry of Kwangtung, Hunan, and Hupeh. I then wrote asking that this statement be embodied in a reply for prompt transmission to my government, which was done. * * *

I have, etc.,

John Gardner Coolidge.
[Inclosure 1.]

Chargé Coolidge to Prince Ch’ing.

Your Imperial Highness: Referring to Mr. Conger’s notes of November 15 and 19, 1904, I have the honor to inform you that I have received a further telegram from the Secretary of State to the effect that the Chinese minister at Washington has announced the intention of the Imperial Government to cancel its agreement with the American China Development Company.

The Government of the United States looks upon this company as in good faith American, and, as is well known, insists upon the sole right to deal with the Chinese Government regarding diplomatic questions affecting its interests.

It therefore can not admit that a step so far-reaching in its consequences can be taken until the justice and necessity of such a measure have been clearly shown.

I am consequently directed strongly to impress upon your imperial highness that my government holds it to be imperatively necessary that this action be postponed until the parties whose interests are vitally affected shall have been further heard from.

I avail, etc.,

John Gardner Coolidge.
[Page 130]
[Inclosure 2.]

Chargé Coolidge to Prince Ch’ing.

Your Imperial Highness: I have the honor to call the attention of your imperial highness to the fact that on the 15th and 19th of November, 1904, and again on the 9th of January, 1905, notes were sent to your imperial highness protesting against the declared intention of China to annul the contract of the China American Development Company, and expressing the urgent desire of my government that the company be given time and opportunity to answer all charges.

So far no answer has been returned to these communications, except the information conveyed by His Excellency Ch’ü Hung-Chi to Mr. Williams, the Chinese secretary of this legation, that the notes had been referred to the board of commerce, which, it was stated, has charge of railway affairs, and that His Excellency Chang Chih-tung, viceroy of the Hu-kuang Provinces, owing to his intimate knowledge of the situation, had been appointed a special commissioner to investigate and report upon the matter.

I have the honor to request of your imperial highness that some authoritative statement of the situation be sent to me in order that I may immediately convey it to my government.

I avail, etc.,

John Gardner Coolidge.
[Inclosure 3.]

Prince Ch’ing to Charge Coolidge.

I have the honor to acknowledge the receipt of several letters and dispatches from His Excellency Mr. Conger and from your excellency regarding China’s proposed method of dealing with the case, and saying that action should be suspended until those most deeply interested in the American China Development Company might have time to make a clear statement of the facts in the case.

As to this matter, it is one which concerns commercial affairs, and moreover the gentry of the three Provinces Kuangtung, Hunan, and Hupeh have made complaint and protest, which is being dealt with by the board of commerce and His Excellency Chang Chih-tung, the viceroy of the Hu-kuang. The note and dispatches sent by His Excellency Mr. Conger and yourself have already been transmitted to them, and a telegraphic notice sent as well, as the records show.

It will be necessary therefore to wait until the board of commerce and Viceroy Chang shall reply. Upon the receipt of such reply I will write your excellency again to inform you.

As in duty bound, I send this reply for your excellency’s information.

A necessary dispatch.


[seal.]