File No. 551/78.

Chargé Fletcher to the Secretary of State.

No. 778.]

Sir: Referring to Mr. RockhilPs No. 703 of August 19a and No. 722 of September 11 last I have the honor to report that a settlement [Page 138] of the Northern Manchurian customs question has been reached by the Russian minister and the Waiwu Pu, in accordance with which goods upon entering the railway zone will pay two-thirds of the regular import duty; if transported from this zone and the fixed areas into Manchuria they will pay an additional one-third of the import duty, and if transported thence into China proper they will be subject to a surtax equal to one-half of the full duty. This arrangement to be in force for one year. A joint commission is at present arranging the details at Harbin, and its is expected that customs collections will begin to be made very soon. A commissioner of the imperial maritime customs has already been ordered north to inaugurate the service.

I have, etc.,

Henry P. Fletcher.
  1. Not printed.