Mr. Van. Valkenburgh to Mr. Seward.

No. 43.]

Sir: In his dispatch No. 5, of the 22d January, 1866, Mr. Portman [Page 729] informed you of the selection made by him of a site on which to build a legation residence at this port, in exchange of one originally granted by the Japanese government to Mr. Pruyn, according to an agreement to that effect.

The other legations also procured sites for a similar purpose and entered into further agreements with the Japanese government, which constructed any buildings that were required at an annual rental of ten per cent. of the total amounts expended, and in addition to a ground rent equal to that paid by the other residents at this port.

Such house and ground rents being provided for these legations by their respective governments, I have learned that permanent arrangements binding those governments for the payment as above mentioned have been effected.

Yokohama, however, will never be the capital of Japan; and even if it were to become permanently the headquarters of our diplomatic and consular service in this country, I could not apply for an appropriation either to construct such official buildings, or recommend that provision be made for annual house and ground rent for myself and successors in office. Three lots have been reserved for the United States—one legation, one extra consular lot, and one hospital lot.

They are well situated on the bluffs, at a short distance from this settlement, and the annual ground rent for these three lots is $132, $220 20 and $155 40 Mexican currency, respectively.

People may probably be found willing to build on these lots and to pay the annual ground rent, and the Japanese, who are entitled to this money, now claim the ground rent in the same manner as from the other legations for ground granted for public purposes.

The lots cannot in justice be much longer reserved by the United States, unless on payment of the rent agreed upon; and as I cannot recommend this course, I have to request, as they possess no marketable value equal to the rent due, that you will be pleased to authorize me to waive any right and title hitherto possessed on the part of the United States, and to return those lots to the Japanese authorities in such manner as will involve no expenditure of public money, and thus finally dispose of all claims for rent, and back rent alleged to be due under the agreement made with Mr. Pruyn above referred to.

I do not hesitate, however, again to recommend, as I have done on former occasions, that exception may be made for sufficient ground for hospital purposes. From the commercial returns you will have perceived that this port is of daily increasing importance to American trade, and it is extremely mortifying to be constantly beholden to the English, French, or Dutch authorities for hospital accommodation for our sailors, who arrive here in great numbers.

I have, therefore, further to request that you will be pleased to take this matter into consideration, and urge upon Congress the passage of a suitable appropriation for an American marine hospital, so urgently needed at this port.

I have the honor to be, sir, very respectfully, your most obedient servant,

R. B. VAN VALKENBURGH.

Hon. William H. Seward, Secretary of State, Washington, D. C.