File No. 788/112–118.

The Secretary of State to Chargé Fletcher.

No. 380.]

Sir: I have to acknowledge the receipt of your dispatch, No. 759 of October 14 last, inclosing a copy of correspondence relating to the matter of the preferential treatment given by the Chinese customs regulations, in violation of treaty stipulations, to trade from Hongkong and Macao to the open ports and ports of call on the West River as against trade from Canton.

You state that the matter was taken up by the legation with the Wai wu Pu, on the representations of the agent of the Standard Oil Company at Canton, and has been satisfactorily settled; and that hereafter foreign goods entering a port of call or open port on the West River will be subject to likin, unless they pay the extra half duty that is payable upon goods entering from an open port in China.

The department is glad to learn that under the present arrangement, as set forth in the note from the Prince of Ch’ing, dated October 8, American trade at Canton will henceforth be able to compete on a footing of equality with the trade of Hongkong and Macao.

The department is gratified that the action of the Chinese Government has removed so completely the discrimination against American trade which existed heretofore.

I am, etc.,

E. Root.