Minister Griscom to the Secretary of State.

No. 266.]

Sir: I have the honor to report to you an interview which I had with Baron Komura on the 25th instant, when I requested him to give me some information in regard to the government of the territory in Manchuria occupied or conquered by the Japanese army, more particularly with respect to the methods of taxation which are now being pursued there.

Baron Komura replied that there were three different kinds of government:

  • First. In the part of Manchuria which had been leased to Russia. In this district a civil government has been established under the general direction of the commander in chief of the Japanese army, and civil officials have been appointed for this purpose.
  • Second. In the city of Niuchwang the Japanese are carrying on practically the same form of government which had been put into operation by Russia previous to the war. The foreign custom-house is in the hands of the regular Imperial Japanese customs and the duties collected are deposited in the custody of the Yokohama Specie Bank and will ultimately be handed over to the Chinese Government. The native custom-house is in the hands of the Japanese authorities and the duties collected are applied to the general improvement of the city and the conduct of its policing and government. The rest of the government of Niuchwang is entirely in the hands of Japanese officials, civil and military.
  • Third. In all the remainder of Manchuria occupied by the Japanese Government and not referred to in the two preceding paragraphs the Chinese Government continues in operation as before the war, excepting that the Japanese military authorities protect their military interests and punish offenders against their necessary military regulations. In each town and city under the control of the Japanese the Chinese Government are carrying on their administrative functions, and there has been no complaint from the Chinese Government with respect to this condition of affairs. Baron Komura added that no taxes are levied by the Japanese authorities in all this part of Manchuria and no part of the taxes collected anywhere in Manchuria is used to defray expenses of Japanese military operations.

I have, etc.,

Lloyd Griscom.