File No. 893.773/9.

Minister Reinsch to the Secretary of State.

No. 284.]

Sir: I have the honor to request the particular attention of the Department to the despatch No. 25 of June 17, in which the Vice Consul in charge at Dalny reported to you concerning the reduced rates on the South Manchuria Railway Company’s branch lines in favor of through imports into Manchuria, via Dalny and Newchwang, from Japan only.

Although apparently not in violation of the literal wording of the undertaking concerning equality of commercial opportunity given by the Japanese Government at the instance of Secretary Hay in 1899 (Rockhilll’s Treaties, pp. 194–6), such an arrangement would seem to be clearly contrary to the spirit of that undertaking and of the many similar assurances since given by Japan. I therefore beg to be instructed what attitude the Department takes toward the proposed arrangement in respect to freight rates, and what (if any) action in the matter it desires should be taken by this Legation.

I have [etc.]

Paul S. Reinsch.