File No. 551/33–34.

Ambassador Riddle to the Secretary of State.

No. 44.]

Sir: I have the honor to confirm your telegram received on May 25 and my reply of May 30, copies of which are hereto attached.

May 29 was the first day on which I was able to see the minister for foreign affairs, and in the course of a conversation with him I expressed the great interest which the United States felt in having normal conditions restored in Manchuria and that the United States Government would highly appreciate any action on the part of the Russian Government which would hasten the establishment of Chinese custom-houses on the Russo-Chinese frontier.

The minister replied that he fully realized the natural interest which the United States felt in this question on account of our important commercial relations and that the Russian Government was also anxious that custom-houses should be established as soon as possible. He added that negotiations were being carried on at Peking, that they were nearly completed, and that the only hitch was caused by the Chinese Government objecting to four minor points, relating, respectively, to the proposed free zone of 50 versts and to the contracts governing the Chinese Eastern Railway Company, although the Russian contention was in accordance with existing treaties and contracts and was upheld by Sir Robert Hart, director-general of Chinese customs.

I have, etc.,

J. W. Riddle.