Minister Morgan to the Secretary of State.

No. 14.]

Sir: I have the honor to inform you that the Korean maritime customs, hitherto a separate and independent bureau, will be placed shortly under the Korean ministry of finance, controlled byMr. Megata, a Japanese subject, who occupies the position of financial adviser. Mr. McLeavy Brown, a British subject, the present chief commissioner of customs, has been superseded. The European commissioners of customs at the Korean ports and the members of the indoor staff, the majority of whom have been detached from the Chinese customs service, will probably resign, although they have been given the option of remaining, and their places will be filled by Japanese. The transfer of the customs was arranged yesterday at an audience accorded by the Emperor to the Japanese minister and Mr. Magata.

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I have, etc.,

Edwin V. Morgan.