Minister Rockhill to the Secretary of State.

[Telegram—Paraphrase.]

(Mr. Rockhill reports that in reference to instructions 159 from the department, he has inquired through the United States consuls at Tientsin and Shanghai. They say American merchants are inclined to believe they may have acquired some rights by filing under the provisional regulations. Chinese foreign office note of December 22, 1904, inclosed, does not apparently affect the fact that several days application for registration was lawful. Japanese probably filed very many more than Americans. Other nationalities may have also. For reasons given on page 2, paragraph 2, of the instruction from the department he advises acceptance German proposal.)