File No. 788/19–21.

The Acting Secretary of State to Minister Rockhill.

No. 249.]

Sir: I inclose herewith, for your information, a copy of an instruction which was sent to the consul-general at Mukden, in answer to his dispatches Nos. 11, 16, and 17 of December 4, 23, and 27 last, respectively, in regard to the proposal of the Chinese authorities to impose an inland tax upon American goods under the guise of a consumption tax, and touching upon the conditions of the opening of Antung, Mukden, and Tatungkou.

I am, etc.,

Robert Bacon.
[Inclosure.]

The Third Assistant Secretary of State to Consul-General Straight.

No. 10, Consular.]

Sir: I have to acknowledge the receipt of your interesting dispatches Nos. 11, 16, and 17, of December 4, 23, and 27, 1906, setting forth the proposal of the Chinese authorities to impose an inland tax upon American goods under the guise of a consumption tax, and touching upon the conditions of the opening of Antung, Mukden, and Tatungkou, questions which for purposes of negotiations the Chinese would seem inclined to treat as related ones.

The department approves of your vigorous opposition to this attempt to revive the likin under another name.

As to the opening of cities in Manchuria under the treaties of 1903, particularly the opening of Mukden and Antung in accordance with our treaty, you will continue to insist upon the faithful execution of Article 12. This Government considers that under that article the cities in question are open in their entirety and that American residence therein is to be free and unlimited. This point is regarded as one of the first importance. The international settlements contemplated by Article 12 would seem less essential and the exercise of the right to establish such settlements might perhaps safely be held in abeyance until the conditions might make international settlements desirable in the interest of American trade.

In dealing with these political questions you will, of course, continue to keep yourself in the closest touch with the legation.

I am, etc.,

Huntington Wilson.