File No. 893.773/44.

Ambassador Guthrie to the Secretary of State.

No. 378.]

Sir: The Embassy’s despatch No. 298 [296] of June 9 last, on the subject of apparent discrimination in the freight rates on the South Manchuria Railway, transmitted copies of correspondence between Mr. Wheeler and the Vice Minister for Foreign Affairs concerning a “draft contract” which the latter stated was being framed by the railway authorities at Dairen.

The Embassy’s unnumbered despatch of June 23 transmitted a copy of a letter from the Consul at that port, carrying as enclosures copies of correspondence between himself and the President and Secretary of the Railway Company.

I am now in receipt of a note from the Foreign Office, a copy of which is attached, informing me that the authorities have seen in Mr. Williamson’s letter to Mr. Kubo (included in the enclosure next above referred to) a reason for the discontinuance of the negotiations.

Under the circumstances, as there is no American steamship line touching at Dairen at present, I have not considered the matter urgent; but I should like to know what the wishes of the Department are in the premises.

I have [etc.]

Geo. W. Guthrie.
[Page 625]

Baron Ishii to Ambassador Guthrie.

No. 267.]

Monsieur l’Ambassadeur: In reference to the inquiry made by Mr. Post Wheeler in a letter dated the 6th ultimo to Mr. Matsui, respecting the reduction of rates on the South Manchuria Railway, I have the honor to inform your excellency that the matter having at the time been referred to the Imperial Railway Board, I am now in receipt of a reply therefrom that the Board has been informed by the South Manchuria Railway Company in reply to an inquiry regarding the later progress of the matter in question that as no proposals have been made to it since the receipt of the letter dated the 7th June last from the American Consul at Dairen, the Company believed that the negotiations on the matter had, as stated in the letter just referred to, been suspended for some reason on the part of the American steamship companies.

I avail [etc.]

Baron Kikujiro Ishii.